Franchising in the Arab World                                                                                                Date 4th March 2011

Creating full employment in the Arab world is the key to avoiding any further people’s revolts in many Arab countries that enjoy a surplus of income due to their revenue from the export of their natural resources, be it oil, gas or any other source which the world needs to maintain its economic growth cycle. 
The Arab world is compose of approximately 340 million people, half of which (160 million) are under the age of 25 and for the most part unemployed amongst the youth is VERY high in most if not all of the Arab world, and this includes countries such as the Kingdom of Saudi Arabia where oil revenues are $ 1 billion a day and unemployment remains at 22 per cent.  The same holds true for most Arab countries and all in all the rate of unemployment in the Arab world is 20 percent or more.
Although efforts have been made time and time again, by most governments to find a way to create jobs, all the efforts have failed.  In particular the attempts to create Small and Medium enterprises, using the models the of the West , have failed terribly, particularly because the Arab culture is different than that of the West and the business environment  in the Arab world is controlled by major players, who hold exclusive distribution to the western products and family businesses which are decades  old, thus anyone with a new idea, has very little change maybe 5 % of succeeding and even then , a copy Kat, can come along and both may fail.
However, I honestly believe that I have found a solution which is the only way to creating full employment in the Arab world which will be the key to avoiding any further peoples revolts in many countries through the concept of Franchising and instead of trying to start up a new Small and Medium enterprise, the solution calls for buying a single Franchise from a reputable Arab Franchisor.
The benefit is that unlike SME’s , the success rate here is 90 per cent and the failure only 10 per cent and even then the Franchisor will do everything within his power not to let the franchise fail, for it would cause terrible damage to the brand and its reputation.
Therefore, Arab government should focus on encouraging all the youth to purchase single Franchises and encourage all reputable and qualified Arab companies to become Franchisors, ironically this is probably the only time when adopting as commercial proven concept from the west ( other than their education) will serve to rescue the Arab governments form going into further chaos by crating real sustainable  employment and allow the young people to become self employed or employed with in a secure domain of work known as the Arab Franchising sector which is growing at an impressive rate and it is designed to grow exponentially if the Arab governments should decide to adopt this proposal as the perfect economic solution for the 21st century.
In my opinion , time is running out now that the revolt have swept Tunisia , Egypt , Libya and seem to be continuing across the Arab world , so the sooner the Franchising option is introduced , the better it will be for both existing governments and the youth of the Arab World .

Presented by
Dr Khaled A. Taki
President of the Arab Franchise Association      

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