THE PROBLEMS AND PROSPECTS FOR FRANCHISING IN THE ARABIAN PENINSULA: THE CASE OF SAUDI ARABIA

This article examines the current status of franchising in Saudi Arabia. Despite the fact that Saudi Arabia exhibits some attractive characteristics for an intensive penetration of this form of distribution, franchising has made a limited appearance in some major cities of the Kingdom, primarily in the fastfood services area. After reviewing the history of the franchising scene in Saudi Arabia and identifying some of the prominent participants in this area, the article describes a number of problems that could be hindering a more successful exploitation of franchising in the Kingdom. Some practical solutions are also outlined.