The UAE’s franchising sector is a critical component of the national economy, attracting global brands and enabling local small and medium-sized enterprises (SMEs) to scale, according to Ali Mohammed Al Marzooqi, Director General of the Abu Dhabi Chamber and Chairman of the UAE Franchise Association. Globally, the franchising model includes over two million companies that provide more than 19 million jobs, highlighting its significant role in driving economic growth and empowering entrepreneurs.
Quick Facts
- Global Impact: Over 2 million franchise companies worldwide.
- Job Creation: Franchising provides more than 19 million jobs globally.
- UAE Ranking: #1 globally for entrepreneurship ecosystem development in 2024.
Leveraging a Top-Ranked Business Ecosystem
The franchise sector in the UAE is experiencing notable growth, with a rising number of international brands choosing the country as a hub for regional expansion. This trend is powered by the UAE’s flexible and advanced investment environment, which has cemented its position as a top global destination for investment and entrepreneurship.
In 2024, the UAE achieved the top global ranking for the development of its entrepreneurship ecosystem, affirming its status as the most supportive economy for new ventures. This achievement reflects the nation’s successful economic diversification efforts, particularly in non-oil sectors. Integrated policies have created a stimulating environment for startups and SMEs, and the franchise model is proving to be a powerful vehicle for accelerating their growth.
Driving Global Partnerships and Expansion
The UAE Franchise Association is actively working to strengthen the sector’s contribution to the national economy’s competitiveness. The organization focuses on creating quality investment opportunities for SMEs, promoting a culture of franchising, and expanding international partnerships. As a member of the World Franchise Council since 2017, the association is dedicated to boosting the UAE’s presence in international forums.
Recently, the association participated in the World Franchise Council meetings in Beijing, held during the annual meeting of the World Franchise Federation, which saw representatives from 47 countries. On the sidelines, the UAE delegation attended the China Chain Store & Franchise Association conference and visited the China Franchise Expo, one of the largest exhibitions in the sector featuring thousands of brands across more than 70 economic sectors. The association also facilitated the visit of 10 Emirati companies to the event, aiming to support their expansion and connect them with global partnership opportunities.
About the UAE Franchise Association
Operating under the Abu Dhabi Chamber, the UAE Franchise Association is dedicated to supporting and developing the country’s franchise sector. Its mission is to enhance the competitiveness of the national economy by empowering SMEs, providing unique investment opportunities, and fostering international collaborations. The association works to promote best practices in franchising and supports the global expansion of Emirati brands.
Source: Albayan
