Franchise in the UAE Economy

Posted by Taylor Brown on February 17th, 2021

Franchise or franchising in the United Arab Emirates appeared with the beginnings of the huge construction and urban boom in the late sixties and early seventies in the form of the commercial franchise related to distribution, and then it developed into a franchise production and distribution together for large companies for famous drinks. Then the transformation came with the great expansion of investments and the acquisition of the UAE’s great importance as a gateway for global trade to re-export exports and the start of the franchise to grow with the idea of ​​exclusive commercial agencies in the field of cars and equipment, which resembles a commercial franchise in many aspects. , As franchising started to appear in the field of restaurants and cafes in Dubai and then Abu Dhabi, and the prevailing pattern and idea about the franchise culture related to cafes, fast restaurants, and drinks. With the global openness and expansion of what is called a society of abundance from the growth of markets and marketing capabilities, the launch of tourism and the building of malls, the franchise expanded in activities, and the beginnings of franchising appeared in the field of retail trade in the seventies and eighties. Then franchise sectors includedOther

Models that led to the growth of franchises in the UAE

One of the most important phenomena for the growth of commercial franchises in the UAE is the Al Shaya Group, as this group originated in Kuwait, and began its franchising activities in 1983 in the field of retailing and contracted with many international franchise brands, some of which included franchise brands.

• Mothercare
• Debenhams 
• H&M 
• American
• Muji 
• Victoria's Secret 
• Pink 
• Next 
• Topshop 
• Topman
• Cos 
• Jack wills 
• Express 
• River Island 
• Dorothy Perkins
• Evans 
• Milano 
• Miss Selfridge

The activities of the Alshaya Group of Franchise included the field of recreation, entertainment and beauty, eye centers, furniture, pharmacies and children, clothes and shoes, the number of brands has 70 brands and the number of outlets is approximately 2,600 commercial outlets, and Franchise Alshaya includes (16) countries, which expanded through the Master Franchise. To be famous for the international franchise links and organizations. Al-Shaya spread across the Arab Gulf states, and this group became a wide presence in the UAE in commercial centers, and the private sector became interested in franchising. The Abu Dhabi Chamber adopted and sought to develop franchises in 2013, where the Emirates Association for Franchise Development was established in 2014, and in the absence of registration and organization of franchise as an activity that enjoys With a legal formulation that has its own characteristics, it has led to the fact that many companies benefit from the information and activities of the Association as an entity that has presence, experience, knowledge, and activities. Conferences, seminars, and exhibitions

And in the United Arab Emirates, there is the Al-Madani Group, whose board of directors is chaired by the executive management, Mr.Mohammed Al-Madani, and it is an Emirati group that was established about 50 years ago and headed in Dubai

The group started its franchising activity at the end of 2005, and its activity included clothing, fabrics, sewing, food and beverages, engineering, contracting, and cafes
, and it is one of the pioneers of franchising in the country.

These groups should benefit from their experience and success stories and have a cumulative balance of practical experience that can be learned from. And one of the modern brands of franchises that can be utilized are the initiatives of Emirati businessmen and entrepreneurs companies that were able within a short time to achieve franchise successes by adopting the idea of ​​creating creative brands that have become internationally known brands

The strategic direction of the franchise

Within the framework of the direction to enhance the role of the private sector in the economy of the Emirate of Abu Dhabi, initiatives are aimed at further achieving diversification across various economic activities to achieve sustainable development

Against the background of the rapid developments in the fields of economy, finance, and business in today's world and the transformations in the era of the information and communication revolution, which led to the great changes that occurred in business performance models, and the escalation of the growth of global economic interdependence and interdependence, which was strengthened by the movement of the spread of investments and transcontinental capital, its organization, And practices of partnership and expansion. Franchising comes as an effective system for partnership, the most effective in the world and the most capable of transferring the attractive, technology, systems, and innovations around the world.

This situation has led to the expansion and diversity of systems, practices, and models that maximize the role of small and medium enterprises globally and locally, and their strong entry into the areas of vertical and horizontal expansion and their crossing across borders to enter within the framework of franchising, which was dominated by the expansion of large companies to foreign markets in the past.

Consulting firm commercial franchise ( franchise ) in the UAE

Scope works to support the entrepreneurs of the two Emirates who are granted franchises, or the granters of the franchise. We provide advice and support to develop Emirati brands into international franchises. Through global and local experiences and a relationship with global franchise links, and we have books under the edition about the development of these brands and raising the level of their readiness to be a franchise through the mechanisms of working with them to transform into a full-fledged franchise, able to expand locally, regionally and internationally.