How to enter the Saudi F&B market in 2026: licences, partners, costs and timeline

By Chadi Kouatly, Managing Partner, Foretus. Former CEO, F&B Division, Abdullah Al Othaim Investments. Published September 2026.

To enter the Saudi F&B market, a foreign brand chooses an entry route (owned entity, franchise or joint venture), obtains a MISA licence or signs a compliant franchise agreement, secures municipal and SFDA permits, leases a first site and builds a Saudization-compliant team. A realistic timeline is nine to eighteen months. Here is how each step works.

Why Saudi Arabia, and why now

Saudi Arabia's foodservice market is worth about USD 32.6 billion in 2026 and is forecast to reach USD 48 billion by 2031, a compound growth rate of around 8% (Mordor Intelligence). Full-service restaurants account for just over half of spending; cafes are the fastest-growing segment at nearly 12% a year; chained outlets are growing faster than independents; and delivery is growing at more than 11% a year. Riyadh's retail stock is expanding by 28% to 4.6 million square metres (Knight Frank), creating new F&B-led destinations. More than 60% of the population is under 35.

Choose the entry route

Owned entity (100% foreign ownership). Permitted for restaurant and retail activities under a licence from the Ministry of Investment (MISA). Gives full control of brand, margin and data. Requires capital (for retail activities with full control, a minimum of SAR 30 million; restaurant-only structures are assessed on their own activity codes), a local organisation from day one, and direct exposure to Saudization and real estate risk. Best for brands with a proven multi-country playbook and the capital to build ten-plus outlets.

Franchise (master or area development). The fastest route. A Saudi partner invests, leases and operates; the franchisor supplies brand, know-how and supply chain. The Commercial Franchise Law (2020) regulates disclosure and registration. The trade-off is control and a share of margin. Best for brands that want speed and local infrastructure.

Joint venture. A middle path: shared capital and control with a Saudi partner, usually with the foreign brand holding the majority and operational lead. Often used by groups that want an eventual buy-out option.

Licences and permits, in sequence

First, the MISA investment licence (owned entity or JV): activity code selection, attested corporate documents, application through the MISA portal. Complete applications are processed within days; budget four to eight weeks end-to-end with attestation. Second, Commercial Registration with the Ministry of Commerce, articles of association and a bank account. Third, trademark registration with the Saudi Authority for Intellectual Property (SAIP), ideally before any public announcement. Fourth, for the franchise route, the disclosure document and agreement are filed with the Ministry of Commerce within 90 days of signing. Fifth, the municipal licence (Balady) for the outlet and SFDA food-safety compliance for the operation and any imported ingredients. Sixth, labour and Saudization setup: Qiwa, GOSI, Mudad and a Nitaqat plan; Saudi employees must earn at least SAR 4,000 a month to count towards quotas.

Find the partner, if franchising

The best Saudi F&B partners are already operating restaurants and can show unit-level P&Ls, an opening track record and a management team, not just capital. Run financial, operational and reputational due diligence, agree a development schedule the partner can staff and site, and negotiate exclusivity by territory and format rather than for the whole Kingdom.

Secure the first site

Riyadh's regional-mall rents average around SAR 2,725 per square metre a year with occupancy above 90% (Knight Frank), and prime units in new lifestyle schemes are allocated early. Decide the first-site strategy (flagship in a destination scheme versus a lower-risk mall unit) before signing anything, and negotiate turnover-rent structures, fit-out contributions and break options.

Budget and timeline

A realistic budget covers licensing and legal, trademark, key-money or deposits, fit-out and equipment, pre-opening payroll and training, marketing, and at least six months of working capital. Fit-out and equipment for a mid-size casual-dining unit in a Riyadh mall typically runs into the low millions of riyals; QSR and cafe units are lower, destination flagships materially higher. The timeline from decision to first opening is usually nine to eighteen months; franchise routes with a ready partner can be shorter, owned entities with imported equipment longer.

The mistakes we see most often

Importing a menu and price point without testing them; underestimating Saudization in the labour model; signing the first site offered; choosing a partner for capital rather than capability; and launching in Ramadan or peak summer without a plan for the trading pattern.

Frequently asked questions

Can a foreign restaurant brand own 100% of its Saudi business? Yes, under a MISA licence. Many still choose a franchise partner for speed.

How long does a MISA licence take? Days for a complete application; four to eight weeks in practice including document attestation and Commercial Registration.

What is the typical royalty for an F&B franchise in Saudi Arabia? Commonly 4-8% of net sales plus an initial fee per unit, varying with brand strength.

Which city first? Usually Riyadh; Jeddah and the Eastern Province next.

Sources: Mordor Intelligence, Saudi Arabia Foodservice Market (2026-2031); Knight Frank, Saudi Arabia Retail Market Review; Ministry of Investment (MISA) licensing guidance; Commercial Franchise Law (Royal Decree M/22, 2019, in force 2020). Contact Foretus at info@foretus.com to discuss your Saudi entry.