Conquering New Markets: Why the Middle East Should Be Part of a Strategic International Expansion

Expanding a franchise internationally is a pivotal step for growth-oriented brands seeking new markets, additional revenue streams, and increased global visibility. With nearly 200 countries to choose from, selecting the right location requires careful consideration of cultural fit, market demand, and long-term growth potential. While Europe and Asia have traditionally been favored for expansion, the Middle East continues to be a top destination for international business, offering unmatched growth opportunities.

A region poised for opportunity

The Middle East presents an alluring combination of strategic geography, robust economies, and openness to international businesses. Its location at the crossroads of Europe, Africa, and Asia makes it an ideal trade hub, supported by major seaports and numerous free trade agreements that facilitate commerce. This geographic advantage, coupled with strong governmental support for foreign investment, positions the region as a prime target for global brands.

Economically, Middle Eastern nations like Qatar, the United Arab Emirates (UAE), and Saudi Arabia are leading the charge. Qatar, one of the wealthiest countries in the world—surpassing even the U.S. in GDP per capita—exemplifies this potential with its National Vision 2030, a comprehensive plan to diversify the economy, promote business development, and enhance lifestyle opportunities.

Famous Brands, the parent company of TCBY and Mrs. Fields, recently announced a multi-unit agreement to open 10 new TCBY locations in Qatar. The UAE, with its Dubai Industrial Strategy 2030, aims to create an innovation-driven economy, while Saudi Arabia’s Vision 2030 focuses on reducing oil dependence and fostering a vibrant, diversified economy. Together, these initiatives signal a region eager to embrace and support international expansion.

A cultural fit for global brands

Middle Eastern consumers are increasingly interested in international brands, creating a ripe environment for growth. Just as U.S. consumers crave global flavors, the Middle East has an appetite for American food and retail concepts. However, brands must approach the market with cultural awareness and adaptability, tailoring products and services to align with local preferences. For example, TCBY plans to incorporate regionally inspired flavors into its menus, ensuring its offerings resonate with Middle Eastern tastes while staying true to its brand identity.

The region’s world-class infrastructure further enhances its appeal. Iconic architecture, expansive shopping centers, and thriving urban environments provide ideal settings for new businesses to succeed. Cities like Doha, Dubai, and Riyadh are not only economic hubs but also vibrant cultural centers where international brands can thrive.

Strategic considerations for expansion

Selecting the right country for expansion is a critical step in any international growth strategy. While the Middle East offers tremendous potential, success requires careful planning and research. Factors such as culture, economic stability, supply chain logistics, and legal frameworks must be thoroughly evaluated to ensure alignment with a brand’s goals. However, one of the most important determinants of success is having the right franchise partner.

Understanding local customs and consumer behavior is essential for crafting menus, marketing campaigns, and customer experiences that resonate. Brands must also assess the financial implications of operating in a new market, including taxes, tariffs, and import duties. Countries with stable economies and growing middle-class populations, like Qatar and the UAE, are particularly attractive for franchisors seeking long-term growth.

A reliable supply chain is another cornerstone of success. Middle Eastern markets often require a mix of imported and locally sourced goods, so businesses must carefully navigate logistics and ensure consistent quality. Additionally, compliance with local regulations and franchise laws is crucial for smooth operations.

The road ahead

For brands willing to invest in research and adaptability, the Middle East represents a land of immense opportunity. With strategic geographic positioning, booming economies, and a welcoming attitude toward foreign investment, the region is an ideal destination for international expansion. By tailoring offerings to meet local preferences and building strong operational foundations, franchisors can unlock significant growth potential while establishing lasting connections in this dynamic market.

As the world becomes increasingly interconnected, international expansion is no longer just an option for ambitious brands, it’s a necessity. The Middle East offers the perfect platform for businesses looking to make their mark on the global stage. With the right strategy and franchise partner, expanding into this vibrant region can lead to transformative growth and long-term success.

Joe Lewis is the president and CEO of Famous Brands International.