by Dana Halawi, Huang Hongsheng
Rana Chemaitelly, a Lebanese franchiser and founder of an edutainment center, sought opportunities outside Lebanon after the financial crisis led to the closure of many businesses in 2019. Her pursuit led her to Saudi Arabia, where she successfully sold her franchise’s services to schools in Riyadh, customizing the curriculum to meet local children’s needs and tastes.
The response from parents in Saudi Arabia was positive, which encouraged her to expand to other cities in the country such as Jeddah, Dhahran, and Dammam. For the year, she expects a turnover of 700,000 Saudi Riyals (186,600 U.S. dollars) in the kingdom.
Lebanon’s Hallab 1881 Group, a sweets company in operation since 1881, is another success story, having sold its franchise’s services not only in Saudi Arabia, but also in Kuwait and Jordan. The company is now looking to expand to markets in France, the United States, and Australia.
Yahya Kassaa, president of the Lebanese Franchise Association (LFA), has noted that many Lebanese franchisers have found good investors in countries such as the UAE, France, and Cyprus in recent years, some with businesses now valued at around half a billion dollars.
Kassaa also highlights the important role played by Lebanese expatriates in promoting Lebanese brands worldwide. With over 40 countries covered and more than 2,000 points of sales, franchising has contributed about five percent to Lebanon’s GDP.
Franchising has facilitated businesses’ development at home, with the benefits including bringing in foreign currency and creating jobs, both of which are crucial during Lebanon’s financial crisis.
Rana Chemaitelly believes that the success of Lebanese brands abroad is due to their business expertise, multilingual workforce, and high-quality products and services. Meanwhile, Raneem Hallab of Hallab 1881 Group emphasizes the importance of building a reputation in Arab and other foreign countries, particularly in the food and beverage sector.
Moreover, Nassib Ghobril, an economist and head of the economic research department at Lebanon’s Byblos Bank, emphasizes the role Lebanese franchises play in sustaining local operations during the financial crisis, bringing back much-needed foreign currency and creating jobs.
