The SME Finance Guarantee Program confirmed that there are no reservations or restrictions on supporting or financing franchise projects in the Kingdom, stressing that it supports and guarantees all economic activities that have added value and contribute to creating new job opportunities.

Osama Al Mubarak

In a press statement, Osama Al Mubarak, Director General of the Kafalah program, stressed that the franchise sector is one of the sectors that contribute to providing real job opportunities for young people and works to stimulate retail trade, and contributes to the transfer of international expertise and technologies to the Kingdom, adding, "Data indicate that the size of the franchise and agency market in the Kingdom is estimated at about five billion riyals, and about 200 Saudi investors work in it through 26 activities."

So we cannot ignore it or put restrictions that limit its launch.

According to data published in 2011, the World Bank's Finance Corporation estimated the percentage of bank financing directed to the SME sector at only 2% of the total financing provided, and the economic study prepared by the Riyadh Economic Forum in its sixth session in 2013 on the SME sector indicates that 98% of SMEs did not obtain loans from banks

The Mubarak said