The GCC was quick to realise the benefits the franchise business model could bring to the region and franchise relationships are imbued into the social and economic structure here. Whilst a small enclave on the world map the GCC has attracted in-bound investment that is more than a match for many 'First-world' economies.

Franchise driven revenues are estimated at $30 billion and the franchise sector experiencing an estimated 27 per cent per annum growth rate. Franchised and licensed businesses have permeated all sectors; education, transportation and tourism included but perhaps its most significant impact has been in the Retail sector.

With a per-capita retail spend of $1800, the GCC ranks lower than the USA ($9,000) and UK ($7,000), yet compares favourably with China and India. With over 120 nationalities resident in the city, and an extensive a tourist catchment the GCC's commercial hub, Dubai, has been coined a 'window to the MENA region'. It provides a soft landing for international Franchisors to test product and brand acceptability against a diverse cultural and social mix, and a potential gateway to the Pan Arab region.

Spearheading Retail...
Dubai's effort to secure its economic supremacy ahead of its depleted oil reserves shows no signs of subsiding. It led the way for foreign investment with the construction of Free-Zones and was the first of the GCC states to allow 100 per cent ownership of businesses by Foreign Investors.

The second largest growth sector [after real estate] is retail which last year alone saw the entry of an additional 630,000m2 in retail space. A five year forecast indicates that there will be an additional 13.3 million m2 (GLA) of retail space available in the Middle East and 30 per cent of this will be hosted by the UAE. Dubai's organised retailing represents about 23 per cent of the Gulf's US$65 billion retail industry.

According to Retail International, Dubai's retailers alone will have to generate US$8 billion in sales by 2009 to sustain the massive increase in shopping centre space and retail activities. The UAE is enjoying population increases above 3.3 per cent PA and forecasts suggest that Dubai's 1.2 million population will reach five million by 2010. Recognising that the resident population will not [alone] sustain the retail sector, Dubai is focused on the tourism dollar which currently accounts for 35 per cent of retail sales in Dubai's prime retail centres and this figure is expected to rise to 50 per cent by 2010. Moreover, the Government is committed to driving the seven million visitors a year in 2006, to 40 million by 2015.

Franchising Middle East (FME) 2007 - the catalyst for change in Retail.
Dubai will host the 4th edition of FME, from 5th-7th March 2007, under the patronage of Mohammed Bin Rashid Establishment for Young Business Leaders, and supported by International Franchise Association.

FME - the largest franchising exhibition in the region - offers international brands and patents the platform to converge, meet, discuss and establish business associations with companies and individuals from across the MENA region (Middle East and North Africa).

FME over the years
FME as a concept evolved to realise the aims of Mohammed Bin Rashid Establishment to nurture the entrepreneurial spirit among the national youth, and catalyse the growth and development of a key sector of the economy - the Small and Medium Business enterprises. The growth of the event is evident from the fact that in a span of only three years the show has established itself as the largest international Franchise Exhibition in the MENA region.

The international stature of the show is evident from the increasing number of participating countries. In additional to individual participation, the show is attracting country pavilions. This goes to show that FME is being perceived an important business platform and gateway to Middle East markets. The 2007 event is expected to attract participants from 25 countries including various national participations.

The show has been steadily attracting greater participation from international brands, local entrepreneurs and regional business enterprises. The expected 20 per cent growth for the 2007 event in itself shows the international interest in the exhibition.

Over the last three years, the exhibition has successfully incorporated new and diverse market categories, products and services bringing a comprehensive preview of the related business prospects including the success rates and risk analysis. The 2007 show is likely to feature products and services across 30 industries.

The increasing presence of representatives from various international trade and franchising associations makes the event amongst the best attended by industry experts and analysts. The visitor profile of the show has been impressive. The show attracts serious trade visitors from all across the world. The 2007 event hopes to attract visitors from 55 countries.

For information visit: www.franchisingme.com or call +971 4 3435777