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ARTICLE · 20 NOVEMBER 2023

Franchising Comparative Guide

Bird & Bird (MEA) LLP
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Franchising Comparative Guide for the jurisdiction of Saudi Arabia, check out our comparative guides section to compare across multiple countries

Saudi ArabiaCorporate/Commercial Law
Eddie Chiu
Eddie Chiu
Melissa Murray
Melissa Murray

1 Legal and enforcement framework

1.1 Which legislative and regulatory provisions govern franchising in your jurisdiction?

Franchising is regulated in Saudi Arabia under the Franchise Law (Cabinet Decision 122/1441) and its accompanying Implementing Regulations (Ministerial Decision 591/1441).

The Franchise Law and the Implementing Regulations replace the commercial agency law with respect to the franchisor-franchisee relationship. Specifically, an agreement that is subject to the commercial agency law in Saudi Arabia is expressly not considered a franchise agreement for the purposes of the Franchise Law.

1.2 Do they apply to foreign franchisors entering your jurisdiction or only to domestic franchises?

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