Franchising Industry Worldwide
Currently, franchising companies and their franchisees account for $1 trillion in annual U.S. retail sales in 320,000 franchised small businesses in 75 industries. Markets outside U.S. borders represent new avenues of opportunity for franchisors with visions of expansion. While in the U.S., Canada and part of Western Europe franchising has reached domestic market saturation, emerging markets remain relatively untapped.

U.S. franchisors are expanding their operations into many countries previously not considered, both developed and developing. Canada, while still the most popular country for U.S. franchise expansion, is today attracting a smaller percentage of franchising activity than it did six years ago. Researchers said this attributed to the growing popularity of expansion into other countries.

Asia, South America, Central America and Mexico are the areas of greatest international franchising growth.

Small & Medium Business Enterprises: A Special Sector
Small & Medium Enterprises of western countries will find an attractive and comfortable niche in MENA region. The SME owners will find many similarities within their own Hands-on Working Approach and the personalized approach preferred by the business community here.

Focus On Emerging Markets
Analysts will put three indicators to identify an emerging economy: the level of economic development, economic growth and market governance. Countries that are liberalizing their economic institutions and democratizing their political structures are often referred to as Transitional Economies/Countries. These transitions have been welcomed by the Western economies and regarded as opportunities for international franchising expansion.

Middle East Markets : Advantages & Growth Potential Advantages
The primary reason of interest in this region is the affluence of Middle Eastern markets, the preference for quality goods, fairly consistent import standards and requirements.

Middle East is one of the fastest growing and developing markets in the world economy today. The region is probably the most investor friendly region with full support from the Governments, attractive tax free facilities and world class infrastructure. Add to this improved Intellectual property Legislations, a high number of High Net-worth Individuals and a young upwardly mobile consumer market keen on leisure and consumer spending, the Middle East is a perfect answer to business investors.
Potential

Franchising, essentially is a coming together of the western business entrepreneurs in the region who exhibit a high degree of professionalism, and the cooperation and dependability of Arab business professionals.
Franchising in the Middle East is growing at a commendable rate of 27% annually. The franchising industry worldwide has taken notice of the enormous potential of Middle East Region.

UAE - The Gateway to Mena Region
In addition to inter-Gulf trade, Dubai also reaches an “outlying ring” of huge markets including East African countries, the CIS, Iran and the Indian sub-continent. Therefore, by establishing a base in Dubai, international businessmen, manufacturers and exporters of less sophisticated equipment and mass consumer products can also successfully find readily available buyers for their goods.

Considerations For Franchisors
However this should not be presumed that the market conditions in MENA Region are easy for a new company coming in. In terms of market demography, government, corporate laws and taxations, labour issues as well as the socio-cultural dynamics, the Middle East markets are diverse in nature. middle East is a amalgam of diverse demographic & commercial factors. There are many different countries--each with its own customs, cultures, languages and laws--which makes expanding into this market more challenging. thorough understanding, research and analysis of market and local conditions will be imperative for any new organization entering the markets.