Franchising Middle East 2005 opens new business vistas for the region

The three day event to be held at the Dubai World Trade Centre from 28 February to 2 March 2005, has attracted over 80 exhibitors representing master franchisers of diverse businesses and services from around the world. The Exhibition provides participants, both exhibitors and visitors, the forum to demonstrate business possibilities arising from franchising operations.

Franchising Middle East 2005 is presented by the Mohammed Bin Rashid Establishment for Young Business Leaders, the foundation at the vanguard of initiating, encouraging and sustaining the entrepreneurial spirit that has defined the growth of business enterprises in the region.

Franchising in the Middle East is on the threshold of extraordinary projected growth, according to industry sources. The all-pervading open-door economic policies now being diligently pursued by all GCC economies to attract new investments implies that the region is rapidly becoming a gateway for new brand names for more and more products and services.

Investors are increasingly gravitating towards franchising to open new business possibilities. The exhibition is expected to further boost the
claim of Dubai and indeed the UAE as the franchise hub of the Middle East.

FME 2005 has received interest from several International Franchise Associations which are in the forefront of developing and exploring
franchise markets of their countries and/ or regions. These Associations have been recommending and encouraging the Middle East & North Africa (MENA) region to their country franchisers through successive FME exhibitions. Additionally, these Associations have also been instrumental in the industry's development by virtue of lobbying special government subsidies, incentives and other facilities.

The Malaysian, Thai and Singaporean governments have extended their full support to the show and have demonstrated their interest by acquiring large country pavilions and bringing in high-power delegations. The Middle East is also a special region of interest for companies from countries as diverse as Egypt, Brazil, Germany, South Africa, Italy and India. Apart from the Franchise associations, Trade & Export Promotion bodies and Export Councils have also worked alongside to build up interest in the region. The international web and print media have also played their part to stress the strategic location and importance of the Middle East as fertile markets for access and development of this cash surplus region and its vast hinterland.

Current projected high demand growth areas for franchising in the Middle East include restaurant and fast-food outlets, quick printing, laundry & dry cleaning, temporary office services, retail and convenience stores. This is in addition to other identifiable high growth sectors like automotive, apparel, education, beauty, IT, hotels, car rentals, retail goods, food products and much more. Heavyweights such as Toys R Us, Burger King, McDonalds, Avis, Hertz, Kentucky Fried Chicken (KFC), Pizza Hut and Holiday Inn are already well entrenched franchise businesses in the region.

Abdul Rahman Falaknaz, President, International Expo Consults (IEC), organizers of the Show also expressed optimism for the success of the Exhibition and the positive impact it would have on exhibitors and visitors alike. The retail industry in the Middle East is trundling along at a frenetic pace and at AED 30 billion, is already the fourth largest contributor to the UAE's GDP; said Falaknaz in Pre-Opening
press remarks intended for the proposed gathering of professionals associated with the franchising community. As a fall out of this
phenomenal expansion, there is also increased and intense competition between new incoming and established brands, retailers, vendors and other service providers and this presents new opportunities and challenges for the business community; continued Falaknaz.

The exhibition will serve as an ideal platform to integrate franchisers and Franchisees in the UAE's commercial capital as the Middle East emerges as one of the fastest growing franchising destinations for marketers from all over the world. The region is probably the most investor friendly region with full support form the Government, attractive tax-free facilities and world class infrastructure. Additionally, improved intellectual property legislation and enforcement, a large number of residents with high disposable incomes and a young, upwardly mobile consumer market keen on leisure and consumer spending make the Middle East an ideal place for franchising opportunities.

Industry estimates the annual growth rate of 27% currently evaluated at over USD $ 14 billion across the region. Fast foods account for a whopping 40% of the total market but other sectors are also registering healthy growth figures. All this augurs well for an industry which is currently on the throes of an accelerated thrust in the region evidenced from exhibition sources, industry indicators and both exhibitor and visitor interest.