Franchising has emerged as one of the most dynamic engines of modern economies, playing a key role in diversifying income sources, creating jobs, and localizing expertise. With the rapid expansion of global and local brands, the franchise model offers a unique blend of brand strength from franchisors and entrepreneurial drive from franchisees.
In Saudi Arabia, franchising holds particular importance under Vision 2030. The sector’s market value has already exceeded SAR 53 billion ($14.1 billion), with franchise brands growing at an annual rate of 27 percent. This makes franchising a vital driver of economic development.
To sustain this momentum, the Social Development Bank (SDB) is stepping in with flexible financial solutions tailored to the country’s economic priorities.
Abdullah Al-Ruwais, Vice President, Business Sector at Social Development Bank, told Asharq Al-Awsat during the Riyadh Franchise Forum that the bank is focusing its financing services on promising sectors within franchising, ensuring flexibility and alignment with national goals. He noted that the sector is expanding rapidly, growing more than 27 percent annually, and is projected to reach 35 percent by 2030.
Al-Ruwais emphasized that this growth requires continuous development of financing tools. Promising sectors include healthcare services, fintech, logistics, e-commerce, entertainment, and tourism. The bank also plays a broader role by offering advisory, mentorship, and training services to both franchisors and franchisees.
He highlighted the new franchising law as a “transformational milestone” for the Saudi market, creating a fair environment for both sides of the franchise relationship. By providing a structured framework supported by regulators and financial institutions, the system fosters a thriving market that strengthens GDP contributions, generates jobs, and deepens local knowledge and industry.
The Riyadh Franchise Forum featured a full program of panel discussions on key topics, including “The Future of Franchising” and “Opportunities and Challenges in the Sector,” along with inspiring success stories.
An accompanying exhibition gave participants direct access to franchisors and successful franchise models. It also offered professional workshops and one-on-one advisory sessions, delivered by experts from the bank and the “Delni Business Center,” to help entrepreneurs design operational and marketing plans. These initiatives aim to empower startups with practical guidance and financial support, ensuring sustainable growth across the Kingdom’s regions.
