Restaurant Franchising in the Gulf: Navigating Opportunities and Strategic Decisions

The Gulf Cooperation Council (GCC)—comprising Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman—continues to solidify its reputation as a hotspot for restaurant franchising. For U.S. brands seeking international expansion, the region offers high disposable incomes, a digitally savvy and youthful population, and a strong appetite for global and premium dining experiences. But behind the headlines lies a landscape that demands strategic planning, legal awareness, and the right local partnerships.

Homegrown brands are moving the market

While international franchises have historically dominated, several local and regional brands are now reshaping the franchising conversation across the GCC:

• Al Baik (Saudi Arabia): A cult-favorite QSR known for fried chicken, Al Baik now operates over 200 outlets across Saudi Arabia, UAE, Bahrain, and Qatar, with ambitious growth plans across the region. The majority of its stores operate under franchise agreements.
• Zaatar w Zeit (Lebanon): Though coming from outside the GCC, this Lebanese fast-casual chain is well-established in the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain. With more than 70 locations globally, the brand continues to grow through franchising.
• SALT (UAE): Launched as a food truck by two Emirati women, SALT has evolved into a beloved homegrown burger brand with over 30 locations in the UAE, Saudi Arabia, Bahrain, and Qatar. Its success highlights the rise of local concepts with strong lifestyle appeal.
• Allo Beirut (UAE): Inspired by Lebanese street food, this Dubai-born concept has expanded across the UAE and is now preparing for regional franchise expansion, signaling the momentum of UAE-grown brands moving into neighboring markets.

Franchise model matters: Regional vs. country-specific

Success in the GCC hinges on choosing the right franchising model. The choice often comes down to whether to appoint a single regional partner or take a market-by-market approach.

Regional development agreements

Partnering with a single operator across multiple countries offers unified branding, centralized supply chain control, and operational efficiency, to name a few benefits. Two recent high-profile examples include:

• Dave’s Hot Chicken: The L.A.-based spicy chicken concept partnered with regional operator, Lavoya Group, to develop its footprint across the GCC. Lavoya’s proven regional expertise is serving the brand well as they have rolled out across multiple countries in the region to date.
• Chipotle Mexican Grill: In a major move, Chipotle entered the GCC through a franchise deal with Alshaya Group, a powerhouse operator across the Middle East. This marks Chipotle’s first international franchising endeavor and leverages Alshaya’s access to prime real estate and operational know-how.

This model suits brands aiming for regional rollout but requires significant trust and alignment with the regional partner’s long-term vision, with all its eggs in one basket.

Country-specific franchising

Alternatively, some brands have opted for localized partners to tailor offerings and operations per country:

• Joe & The Juice: The Danish café brand partnered with UAE-based Lavoya Group and uses separate franchisees in other GCC markets. This model enables localized execution while maintaining brand integrity and faster scale across the region. 
• Five Guys: Operating with distinct franchise partners in the UAE, Saudi Arabia, and Kuwait, Five Guys benefits from strong local market penetration while retaining centralized brand oversight.
• Wagamama: The pan-Asian chain uses multiple operators—RMAL Hospitality in the UAE, Bin Mirza International in Oman, and another partner in Saudi Arabia—highlighting the feasibility of a segmented model in diverse markets.

Both models have merit. Regional partnerships offer consistency and the opportunity to focus on growth with one partner, while country-specific agreements allow for quicker growth (usually) and deeper local adaptation, which is critical in a region where legal, cultural, and operational norms can vary dramatically.

Legal and regulatory updates

Understanding the regulatory frameworks governing franchising in each GCC market is essential to minimizing risk and ensuring compliance:

• Saudi Arabia: In 2020, the Kingdom implemented a dedicated franchise law requiring registration and disclosure documents. This framework has enhanced legal transparency and boosted investor confidence.
• United Arab Emirates: Recent amendments to the UAE’s Commercial Agencies Law have introduced more flexibility for franchisors, including provisions for terminating exclusive agency agreements under defined conditions. These changes are attracting international brands.
• Other GCC Markets: Bahrain, Kuwait, Oman, and Qatar primarily regulate franchising under broader commercial agency laws. These often entail exclusivity provisions and registration requirements, making local legal counsel indispensable for each market entry.

The GCC presents a compelling opportunity for restaurant brands ready to expand internationally. With young, brand-conscious consumers and increasing demand for dining innovation, the region is ripe for growth. Yet, success depends on much more than brand appeal—it requires optimal partner strategy and selection, regulatory due diligence, and operational excellence across diverse, fast-evolving markets. For American restaurant franchisors seeking their next international growth chapter, the GCC offers immense potential, but only for those who enter with a well-informed and locally attuned game plan.

Rebecca Viani is partner with WhiteSpace Partners, a London-based firm, focused on the development and execution of market entry, franchise development, and acquisition strategies for restaurant brands expanding into Europe and the Middle East.