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Editor's Note: August '24

Vision 2030 – The Power of Franchising in a Thriving Economy

Saudi Arabia has always been synonymous with oil. Now, with its ambitious Vision 2030 plan to become an economic powerhouse, franchising is reaping the benefits. With approximately 90 percent of its exports and 45 percent of its GDP being in oil, Saudi Arabia has always relied on its petrochemical industry to fuel its development and economy. However, the Saudi leader and its government are pushing hard to diversify its economy for strong and sustainable growth. The country’s Vision 2030 is set to cement its position as the leading nation, not just within the Arab and Islamic worlds, but also on the international stage as well.While Saudi Arabia has always held an influential role in regards to oil supply to the rest of the world, the country has, for the past several years now, undergone significant changes on various economic, social, political and religious levels.Saudi Arabia is currently ruled by the youngest Prince in its long history. A Millennial, Crown Prince Mohammad bin Salman bin Abdulaziz Al-Saud, has set out an ambitious, yet clear and achievable, goal to become an investment powerhouse and economic hub of the Middle East.

The country’s Vision 2030 involves further opening up the country to private sector business and foreign investment with the aim to become a global investment powerhouse, as well as utilizing its strategic location as an epicentre of trade and a gateway to the world to become an economic hub that connects Asia, Africa and Europe with the Middle East. A growing young population, almost half the population of Saudi Arabia are under the age of 24. And the young Crown Prince understands the potential this young population has on the development of the nation. Upgrading services and infrastructure, improving quality of life, attracting foreign investment, encouraging small business growth and diversify social and entertainment opportunities are just some of the key aspects of change set out in Saudi Arabia’s Vision 2030. The franchising business model has quickly become one of the most attractive and rapidly growing models for small and medium businesses within Saudi Arabia. The combination of a high per capita GDP, the opening up of western brands and products to Saudi nationals and the growing young population are all aspects that have economists excited about the future of franchising in Saudi Arabia.

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