Sary Hamway (COO of World Franchise Associates)
Dubai - Major global companies have already established their market footprint in the region to take advantage of its booming population with high disposable income and growing affinity for luxury goods.
Published: Wed 17 Feb 2016, 8:34 PM
Brands that offer specialised niche services will soon be the trend for local investors looking at franchising opportunities in the UAE and Mena region, an expert at the eighth World Franchise Forum and Expo noted.
Speaking to Khaleej Times on the sidelines of the event, Sary Hamway, COO of World Franchise Associates, said: "I would imagine that over the next three to five years, the future will lie towards the service brands. The franchise market in the UAE is rapidly maturing and the trend today is for local investors to target service brands, not just the traditional F&B brands. Education, fitness centres, cleaning and maintenance, nurseries, these are all niche markets that provide specialised services to communities, and demand for these services will drive the franchising model."
Speaking about brands looking to start a franchise in the UAE, Hamway advised that they be operating for a minimum of two to three years, with good profit margins, a complete and proven business model, and a distinctive brand design and identity. Asked if an economic downturn would affect the franchising sector, Hamway answered in the negative, pointing to the fact that franchise brands continued to enter the market during the 2008 downturn, and that the fast food franchises operating in the region actually thrived under the conditions. "Consumers still wanted the experience of eating out, which is why the fast food segment did so well. The F&B franchise sector will continue to flourish in the coming years. Other franchise sectors that will do well include the retail segments that deal with fashion, cosmetics, health and beauty, and perfumes. But, it is the service sector that is the future of franchising in the Middle East," he noted.
The latest edition of the high-profile forum and expo comes at a time when a growing number of international brands are expanding in the region through their franchise partners, with the UAE and the rest of the GCC states as their key targets. Major global companies have already established their market footprint in the region to take advantage of its booming population with high disposable income and growing affinity for luxury goods. Similarly, many local franchise brands are also now setting their eyes on the international market.
Christopher Brinkley, director of World Franchise Associates, said: "Over 50 per cent of retail sales in the GCC are generated from international brands. Key sectors such as retail, food and beverage, education, transportation, tourism, and healthcare, to name a few, offer profitable franchising opportunities."
- rohma@khaleejtimes.com
E-Paper
Sign In
0°C 
