HH Sheikh Majid bin Mohammed Bin Rashid inaugurates the 4th edition of Franchising Middle East

The already booming Middle East franchising sector received a shot in the arm as Mohammed bin Rashid Establishment for Young Business Leaders launched the 4th edition of Franchising Middle East under the chairmanship of HH Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum. Companies from across the world have converged in Dubai to explore and captilise on opportunities offered by one of the fastest growing franchise industry in the world.

The three day exhibition opens up exciting business opportunities for international franchisors seeking to attract entrepreneurs and investors across the Middle East, North Africa region, Indian Sub-continent, Iran, Iraq, Lebanon and Egypt. The event will equally help the young national entrepreneurs seeking strategic international partnerships either to establish or expand their businesses.

The main objective of FME 2007 is in line with the strategic vision of Mohammed Bin Rashid Establishment for Young Business Leaders and compliments its efforts to support the franchise sector in the UAE by providing greater investment opportunities for small and medium enterprises.

Abdul Baset Al Janahi, CEO Mohammed Bin Rashid Establishment for Young Business Leaders said, 'As economies of the GCC countries enter a new phase of development, the emphasis on Small and Medium Enterprises(SME) opens new vistas for the franchising business. SME's are a significant source of new business leads and have a progressive and crucial role to play in stimulating local and regional development.

Young local entrepreneurs can immensely benefit from the tremendous opportunities offered by the global franchising sector that is worth AED 3.67 trillion.

Organised by International Expo Consults (IEC), the exhibition boasts the presence of a large number of international and regional franchisors and master franchisees showcasing their products and services. Further, industry leaders, trade analysts, key decision makers and representatives of various franchise associations including the International Franchise Association (IFA) are camping in Dubai to evaluate franchising opportunities, identify new emerging investment sectors and read the future trends as Middle East , led by GCC, enters into a new phase of fast paced economic development and diversification. The new strategic lead that is envisioned to drastically reduce the region's dependence on oil revenues is opening up opportunities like never before and in sectors never imagined before.

Therefore, not surprisingly the franchising industry in the Middle East and North Africa is growing at a stupendous 27 percent per annum. A combined population of 1.4billion people and a staggering combined GDP of $ 1.9 trillion make the region for a very powerful economy. The Gulf Cooperation countries which together make up world's 17th largest economy have taken a lead in franchise business. Franchised and licensed businesses have permeated all sectors: education, transportation and tourism but its most significant impact has been in the retail sector. Retail International forecasts the addition of around 4.6 m sq m of retail space to GCC's total in coming years with Dubai alone accounting for 1.2 million square metres of additional floor space

According to Mr. Abdul Rehman Falaknaz, President, International Expo Consults, 'The retail industry in the Middle East is developing at a frenetic pace. At $100 billion per annum, it is creating tremendous opportunities for new products and services. The presence of international brands in the exhibition reflects the international interest in the Middle East expanding retail sector.

Dubai is clearly emerging as the regional hub of the franchising industry and is setting the momentum for the region as a whole. The city is one of the most investor friendly destinations in the region. Improved intellectual property legislation and property ownership rights to foreigners coupled with world class infrastructure, attractive tax free facilities and easy access to emerging high growth markets like India, North Africa, CIS and Levant make Dubai ideal for franchising opportunities.'

The 2007 show has attracted companies from 17 countries including national pavilions from India and Malaysia.

'The reputation of FME as an important business platform is further boasted by the presence of various national pavilions, and such participations reflect the commitment of the respective trade development associations in furthering the bilateral trade between the countries. The signing of the franchise agreements between the companies has a direct relation to the economy of the countries represented by the franchisor and the franchisee', added Mr. Falaknaz

The sectors which are in high demand include food, fashion, education training, human resource development, consultancy services, retail and convenience stores, laundry and dry cleaning. This is in addition to other identifiable high growth sectors like automobile, apparel, education, beauty, IT , hotels, car rentals etc. While fast food alone accounts for a whooping 40 percent of the total market all the other sectors are showing a healthy growth.

FME has emerged as an important international franchising exhibition in the MENA region, since its inception in 2004. The exhibition is a prime source of in-depth information on new business and investment opportunities emerging in the region. As an interface between international franchisors and entrepreneurs from the entire Middle East North Africa region and surrounding neighborhood of Indian Sub-continent, Iran Iraq, Lebanon and Egypt, the show has helped many European brands to establish themselves in these markets. The exhibition has also helped home grown UAE brands to establish markets across the GCC, Middle East and North Africa region.