Finance Specialist at the Social Development Bank, Roaa Al-Issawi, said that the value of the franchise market in Saudi Arabia has reached one billion dollars, noting that the Kingdom was expected to witness the launch of 60 Saudi brands by the end of this year.
Al-Issawi noted that the Social Development Bank has approved 10 national trademarks, while 50 others would be qualified during the current year, adding that the bank’s strategy was aimed at focusing on national brands rather than resorting to imports.
Speaking at the first session of the Commercial Franchise Forum in Al-Khobar, Al-Issawi said that the Social Development Bank has set specific conditions and standards to reduce the fees required by trademark grantors, which range between 4 and 10 percent, explaining that the launching of the commercial franchise product aims to provide a source of income for the citizens, as well as support the national economy.
The bank official estimated the value of the commercial franchise market in the Kingdom at more than one billion dollars, with an annual growth rate ranging between 10 and 12 percent.
Al-Issawi presented the advantages of the commercial franchise program offered by the bank, saying that the dedicated financing amount reaches SAR 4 million.
She added that the bank would provide the necessary follow up on projects during the establishment and operation phases, solve obstacles and problems facing beneficiaries, and organize specialized training courses, on-the-job training at the franchisee company, in addition to technical workshops and financial and marketing consultations.
As for the conditions for applying for the commercial franchise program, Al-Issawi stated that the applicant must be of Saudi nationality, aged between 21 and 65 years, and fully devoted to operating the project.
