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La Côte d’Ivoire a adopté la loi n°2013-450 du 19 juin 2013 sur la protection des données personnelles afin de répondre aux exigences de la transformation numérique.

L’article 1er de cette loi définit les données à caractère personnel comme étant « toute information de quelque nature qu’elle soit et indépendamment de son support, y compris le son et l’image relative à une personne physique identifiée ou identifiable directement ou indirectement, par référence à un numéro d’identification ou à un ou plusieurs éléments spécifiques, propres à son identité physique, physiologique, génétique, psychique, culturelle, sociale ou économique. »

Ainsi, en vertu de l’article 3, sont notamment soumis à la loi :

  • toute collecte, tout traitement, toute transmission, tout stockage et tout utilisation des données à caractère personnel par une personne physique, l’Etat, les collectivité locales, les personnes morales de droit public ou de droit privé ; 

  • tout traitement automatisé ou non de données contenues ou appelées à figurer dans un fichier ;

  • tout traitement de données mis en œuvre sur le territoire national.

L’article 46 de loi créé l’Autorité de protection des données à caractère personnel[1], autorité administrative indépendante chargée de la régulation des télécommunications et des technologies de l’information et de la communication.

Dès lors, tous ces traitements de données sont soumis à une déclaration préalable auprès de l’Autorité de protection des données à caractère personnel. Cette déclaration doit comporter l’engagement que le traitement est conforme à la loi sur la protection des données. L’Autorité de protection des données à caractère personnel délivre, par la suite, un récépissé permettant au demandeur de mettre en œuvre le traitement des données.

 

SAUDI ARABIA

I. Economic data

A. Macro-economic data

 

• General data[1]

 

Population 2021 : 35,950,396 inhabitants

Area : 2,149,690 km2

Density : 14 inhabitants/km2

GDP (nominal) 2022 : $1.108 billion[2]

GDP/capita 2022 : $30,447.9[3]

GDP (PPP) 2022 : $2.158 billion[4]

GDP (PPP)/capita 2022 : $59,279.9[5]

Growth rate 2021 : 3.2 %

GNI/capita (PPP) 2020 : $46,130

HDI 2021 : 0.875

Literacy rate : 98 %[6]

Life expectancy 2022 : 77.5 years

 

• Policy[7]

Saudi Arabia is made up of thirteen emirates.

 

Saudi Arabia is a monarchy ruled by King Salman Ibn Abd al-Aziz al-Saud. The King appointed his son, Mohammed bin Salman, Crown Prince on June 21, 2017. Mohammed bin Salman also became Prime Minister on September 27, 2022. The latter had already begun reforms, both economic and social, with the "Vision 2030" plan launched in 2016[8]. Saudi Arabia's aim is to diversify its economy in order to become increasingly less dependent on hydrocarbons. To this end, the country has set various priorities: renewable energies, digital, industry, space, culture and, above all, tourism.

 

To promote the emergence of tourism, the Crown Prince has set up several projects, such as the city of Neom, described as a "futuristic city", the Red Sea luxury seaside resort, the Qiddiya city, and the creation of the Al-Ula archaeological site.

 

• Economic development

 

In 2005, Saudi Arabia became the 149th member of the WTO[9] . Saudi Arabia is also a member of the G20 and OPEC, (the Organization of Petroleum Exporting Countries).

 

Saudi Arabia experienced a period of recession in 2020, caused by the Covid-19 health crisis. However, the country's economic growth increased sharply during 2022, thanks in particular to the rise in the price of oil[10], making the Saudi economy one of the most dynamic in the world in 2022[11]. The Saudi economy is, therefore, largely driven by the oil industry, and in 2022, Saudi Arabia was the world's leading exporter of crude oil[12].

 

The Saudi authorities are forecasting an inflation rate of 2.1%, well below the IMF global average of 6.9%[13].

 

• Resources

 

Services, accounting for 52.2% of GDP, are the sector that creates the most wealth. It is also the sector that creates the most jobs, with 72.9% of the workforce employed in this sector. The mining and industrial sectors account for 45.5% of GDP and employ 24.8% of the workforce. Finally, the agricultural sector contributes 2.3% to GDP and employs 2.3% of the workforce[14] .

 

Saudi Arabia's main resource is hydrocarbons; in 2022, the country was the world's second largest oil producer[15].

 

• Population[16]

Saudi Arabia's population is largely urban. In fact, the urban population accounts for 85% of the total population.

 

24% of the Saudi population is under 15 years old, 73% between 15 and 65, and 3% over 65.

 

Of the 39.95 million inhabitants, over 36% are not Saudi nationals[17].

The ten most populous cities in Saudi Arabia are Riyad (6,506,700), Jeddah (3,976,400), Mecca (1,919,900), Medina (1,271,800), Al-Ahsa (1,136,900), Taëf (1,109,800), Dammam (975,800), Bur Aidah (658,600), Khobar (626,200) and Tabuk (609,000).[18]

 

• Foreign investment[19]

 

In 2021, exports of goods accounted for $276 bn, while imports of goods were around $139 bn[20] .

 

The publicly stated goal of diversifying the economy has boosted foreign investment in Saudi Arabia. Between 2019 and 2020, the inflow of foreign direct investment (FDI) rose by 20% to $5.39 bn. In 2021, the FDI inflow jumped to $19.28 bn, and then reached $7.88 bn in 2022. Investments are mainly directed towards the chemical, real estate, fossil fuels, automotive, tourism, plastics and machinery sectors.

 

Saudi Arabia's main investor countries are the United Arab Emirates, the United States, France, Singapore, Japan, Kuwait and Malaysia.

 

B. Economic data specific to franchising

 

• Historical background

 

The franchise sector was established in Saudi Arabia as early as 1970, and expanded considerably in the 1990s, notably through international franchises in the restaurant and hotel sectors[21] .

 

• Institution

Saudi Arabia welcomed the arrival of the Quality Franchise Association Saudi (QFA)[22] , established in 2018, which aims to encourage franchising in Saudi Arabia. The QFA supports franchised businesses and individuals wishing to get started in franchising. The QFA has set up a code of conduct, which is followed by its members[23] .

• Trade shows

 

The Saudi Franchise expo is held in Riyadh. The latest edition was held from January 28 to 31, 2024 at the Riyadh International Exhibition Centre. The Saudi International Franchise Expo aims to develop non-oil business sectors, in line with the "Vision 2030" reforms[24] .

 

Over 12,000 visitors attended the 2019 edition of the Saudi International Franchise Exhibition. The show also featured 139 exhibitors representing 170 brands from 15 different countries, with more than 230 contracts[25] being signed.

 

• Statistics

 

Approximately 60% of the Middle East franchise market is located in Saudi Arabia[26] .

 

More than 165 brands have been registered in the retail, restaurant, automotive, healthcare, tourism and hotel sectors[27] .

 

Retail is a sector that is attracting more and more franchises, such is the size of the market. Household spending in this sector, for example, was $293 bn in 2019[28] .

 

Nevertheless, the dominant franchise sector remains food, accounting for $44.6 bn in 2017. By contrast, spending in the fashion sector reached $14.8 bn[29] .

 

Investment in the franchise market in Saudi Arabia is in the region of $14.93 billion[30]. To support and enable the development of franchising in Saudi Arabia, and in line with the "Vision 2030" program, the Social Development Bank offers a franchise program for its citizens, through financing ranging from 150,000 to 4 million riyals and lasting up to 8 years[31] .

 

• Contract content

 

Franchise fees average between 4% and 10%[32]. Generally, the duration of a franchise agreement offered by the franchisor can vary, and is usually either 5 or 10 years[33].

 

• Special features[34]

 

Saudi Arabia has a number of specific characteristics that require a tailored approach.

 

For example, the applicable regulations require that food sold must be halal. This must be taken into consideration by franchisors in the restaurant or food sector wishing to set up in Saudi Arabia, and who must tailor their supply system to comply with these regulations.

 

In addition, Saudis, both men and women, wear culturally specific clothing. However, there is no strict control over foreigners, who remain free to choose their own attire, provided it respects local customs.

• Economic impact

 

The franchise market in Saudi Arabia is worth $1 billion[35] .

 

• International

 

More than 300 companies with franchises in Saudi Arabia are foreign[36]. Moreover, foreign brands account for around 86% of total brands in the franchise industry[37].

 

II. Legal information

 

A.Legal information directly related to franchising

 

• Main applicable texts

 

The Saudi franchise law[38] came into force on April 22, 2020, together with implementing regulations[39] .

 

The Saudi Franchise Law does not apply to franchise contracts already in existence at the time it came into force, but only to contracts signed after the law came into force (preamble no. 2 of Royal Decree no. 9152).

 

Section 1 of the Saudi Franchise Law defines franchising as an agreement under which a franchisor grants the right to the franchisee to carry on for its own account the activities covered by the franchise, linked to any brand or trade name that belongs to the franchisor or the person granted the right to use them. The rights granted include the provision of technical expertise and know-how, and determination of the how the franchise works, in return for financial or non-financial consideration other than sums paid by the franchisee to the franchisor for the goods or services.

 

The franchise agreement must be drafted in Arabic or, failing that, must be translated into Arabic by a certified translator in Saudi Arabia[40].

 

Saudi franchise law requires registration of the franchise agreement and disclosure of pre-contractual information to the potential franchisee.

A Commercial Franchise Center, established within the General Authority for Small and Medium Enterprises (Monshaat), has been set up to oversee the implementation of the Saudi Franchise Law[41] .

 

• Pre-contractual information

 

According to franchise law, a pre-contractual information document must be delivered 14 days before the franchise agreement is signed or before any franchise fee is paid to the franchisor.

 

The pre-contractual information document must be written in Arabic, or failing that, must be translated into Arabic by a certified translator in Saudi Arabia[42] .

 

Section 6 of the implementing regulation sets out the information to be included in the pre-contractual information document. This document must be accompanied by a copy of the proposed franchise agreement.

 

Once signed, the franchise agreement and the pre-contractual information document must be registered by the franchisor with the Ministry of Trade and Industry within 90 days of the date of signature of the agreement[43] .

 

• Contractual performance

 

The franchisor and franchisee must act in good faith towards each other, according to Section 10 of the Saudi Franchise Law.

 

Section 11 of the Franchise Act sets out the elements that must be included in a franchise agreement. In particular, the franchise agreement must include the franchise activity, the duration of the agreement, the terms and conditions for amending the agreement, the territorial limits of the agreement, the fees to be paid by the franchisee to the franchisor, the parties’ obligations, the mechanism for resolving any disputes arising from the franchise agreement, the conditions under which the franchisee has the right to grant a unit franchise to third parties and its provisions, and the effects of any change in the ownership of the franchisor, the franchisee or any person controlling either.

 

Section 8 of the implementing regulations adds that the franchise agreement must contain the trademark, trade name and any intellectual property rights used, the franchisor's relationship with the trademark owner if it is not the owner, provisions relating to whether or not the agreement may be renewed, the rights and obligations of the parties arising from termination or expiry of the contract, any non-competition clause, the franchisee's undertaking not to damage the reputation of the franchisor and the franchised business, the obligations of the parties relating to confidentiality of information and data protection.

 

• Jurisdiction and applicable law

 

Saudi Arabia has ratified the 1958 New York Convention[44] facilitating recognition and enforcement of foreign arbitral awards.

 

• Trademark

Saudi Arabia is a party to a number of international conventions on intellectual property rights, including the 1967 Paris Convention, which specifies that each contracting State shall grant the same protection to nationals of other contracting States as it grants to its own nationals in respect of industrial property.

Saudi Arabia has also joined the Nice Agreement.

       

Saudi Arabia, however, has not joined the Madrid System, which allows it to benefit from the international trademark.

Trademarks are protected for 10 years from the date of filing (10 years in the Hegira calendar, equivalent to 9 years and 8 months in the Gregorian calendar[45]). To be registered, the trademark must be lawful, and therefore not contrary to Islamic values (e.g., applications to register trademarks for alcoholic beverages and pork meats are rejected). The trademark may take the form of a name, a word, a signature, a letter, a symbol, a number, an address, a seal, a drawing, a photo, an inscription, packaging, a graphic element, a shape, a color, a combination of colors, as long as it is distinctive from other products or services[46].

The Saudi IP Authority[47] was established in 2018 with the aim of regulating, supporting, developing and enforcing intellectual property rights[48]. It is with the Saudi IP Authority that the application for trademark registration is made.

B. Peripheral legal data

• Competition law

Franchise agreements must comply with competition law.

The Saudi Competition Law[49] , which came into force on March 7, 2019, specifies in Section 4 that the prices of goods and services must be set according to the principle of free competition and comply with market rules, other than prices of goods and services set by a resolution of the Council of Ministers or by virtue of a law.

Section 5 of the Competition Law Act prohibits practices, including agreements or contracts between entities, if they aim or have the effect of harming competition, including the following practices:

-Set or propose prices for goods, service charges and conditions of purchase or sale;

-Set the size, weight or quantity of goods produced or services provided;

-Restrict the free flow of goods and services to or from markets, in whole or in part, by unlawful concealment, storage or refusal to market;

-Divide up markets for the sale or purchase of goods and services, or designate them according to any standard, including the following: geographic area, distribution center, consumer type, seasons and periods.

The General Competition Authority[50] is the competent authority that ensures compliance with competition law.

 

Personal data

Saudi Arabia has recently introduced legislation governing personal data: the Personal Data Protection Law (PDPL)[51].

Section 1 defines personal data as any data, whatever its source or format, which may directly or indirectly enable a person to be identified, including name, personal identification number, address, contact number, telephone number, bank and credit card numbers, photos and videos of an individual, and any other personal data.

The scope of this law covers any processing of personal data taking place in Saudi Arabia or relating to natural persons resident in Saudi Arabia. This includes the processing of data on deceased persons if this leads to them, or a member of their family, being specifically identified. Personal data processing limited to personal or family use is excluded from the scope of the PDPL (Section 2 of the PDPL).

The PDPL confers a number of rights on data subjects, including the right of access to data collected by the controller, the right to obtain data collected by the controller in a clear and readable format, the right to have personal data corrected and updated, and the right to request its destruction (Section 4 of the PDPL).

Personal data may be collected and processed with the data subject’s consent  (Section 5 of the PDPL), or if the processing of personal data serves his/her interests but it is virtually impossible to communicate with him/her, if the processing is carried out under another law or pursuant to a previous agreement to which the data subject is a party, if the controller is a public entity and the processing is necessary for security purposes or to meet legal requirements, and if the processing is necessary for the purposes of the legitimate interest of the controller, without prejudice to the rights and interests of the data subject, and provided that no sensitive data is processed (Section 6 of the PDPL).

The Saudi Data and artificial intelligence Authority[52] is responsible for ensuring compliance with the PDPL.

• Special provisions for foreign investments

Section 5 of the aforementioned Saudi Franchise Law specifies that foreign franchisors may offer a franchise provided it has been in operation for at least one year, by at least two people, with at least two points of sale.

Section 2 of Saudi Arabia's Foreign Investment Law[53] specifies that the Ministry shall issue a license for the investment of foreign capital in any investment activity, whether permanent or temporary.

 

Section 5 of the Foreign Investment Act specifies that authorized foreign investments may take one of the following forms:

-Company owned by a domestic investor and a foreign investor;

-Company 100% owned by a foreign investor.

 

The General Investment Authority of Saudi Arabia is the competent authority for granting investment licenses to foreign companies to set up in Saudi Arabia.

Main websites

-Intellectual property: https://www.saip.gov.sa/en/# ;

-Quality Franchise Association: https://saudi.franchise-association.org/;

-Vision "2030": https://www.vision2030.gov.sa/en/;

-Personal data: https://sdaia.gov.sa/en/default.aspx ;

-Foreign investment: https://misa.gov.sa/en/;

-Legislation: https://ncar.gov.sa/?Id=tsZdirjUwV%2BLaqnNi0zQ%2BQ%3D%3D#welcome;

-Competition law: https://gac.gov.sa/#;

-Central Statistics and Information Service: https://www.stats.gov.sa/;

-World Bank: https://www.banquemondiale.org/fr/home;

-International Monetary Fund: https://www.imf.org/fr/Home

 

[1] Unless otherwise indicated, the data below is taken from the Atlas socio-économique des pays du monde, Larousse, 2024 edition.

[2] https://donnees.banquemondiale.org/indicator/NY.GDP.MKTP.CD?locations=SA

[3] https://donnees.banquemondiale.org/indicator/NY.GDP.PCAP.CD?locations=SA

[4] https://donnees.banquemondiale.org/indicator/NY.GDP.MKTP.PP.CD?locations=SA

[5]https://donnees.banquemondiale.org/indicator/NY.GDP.PCAP.PP.CD?locations=SA

[6] https://donnees.banquemondiale.org/indicator/SE.ADT.LITR.ZS?locations=SA

[7] Unless otherwise indicated, the information below is taken from https://www.diplomatie.gouv.fr/fr/dossiers-pays/arabie-saoudite/presentation-de-l-arabie-saoudite/

[8] https://www.vision2030.gov.sa/en/

[9] https://gm-avocats.com/fr/la-franchise-en-arabie-saoudite/?print=pdf

[10] Atlas socio-économique des pays du monde, Larousse, 2024 édition

[11] https://www.tresor.economie.gouv.fr/Pays/SA/situation-economique-et-financiere-de-l-arabie-saoudite

[12] https://www.ilboursa.com/marches/top-10-des-pays-exportateurs-de-petrole-brut-en-2022_42304

[13] International Monetary Fund Report, World Economic Outlook, October 2023: Diverging Trajectories

[14] Atlas socio-économique des pays du monde, Larousse, 2024 Edition

[15] https://fr.statista.com/infographie/19382/plus-gros-producteurs-de-petrole-brut-dans-le-monde/

[16] Unless otherwise stated, the information below is taken from the Atlas socio-économique des pays du monde, Larousse, 2024 edition.

[17] https://www.diplomatie.gouv.fr/fr/dossiers-pays/arabie-saoudite/presentation-de-l-arabie-saoudite/

[18] https://fr.ripleybelieves.com/biggest-cities-in-saudi-arabia-1498

[19] Unless otherwise stated, the information below is taken from https://www.btrade.ma/fr/observer-les-pays/arabie-saoudite/investir

[20] Atlas socio-économique des pays du monde, Larousse, 2024 édition

[21] https://fotislaw.com/lawtify/franchising-in-the-kingdom-of-saudi-arabia/

[22] Bay view Tower, Business Bay, Dubai, United Arab Emirates, Tel: 00971 - 585853266

[23] https://saudi.franchise-association.org/

[24] https://www.saudifranchiseexpo.com/#

[25] https://lessentielinfo.com/pubn3145riyad-louverture-du-salon-international-saoudien-de-la-franchise-avec-la-participation-du-maroc/

[26] https://www.global-franchise.com/insight/the-franchise-era-in-saudi-arabia-has-begun

[27] https://franchising.eu/article/232/saudi-arabia-s-rewarding-franchise-future/

[28] https://legacy.export.gov/article?id=Saudi-Arabia-Franchising

[29] Ditto

[30] https://www.zawya.com/en/business/retail-and-consumer/investments-volume-of-franchise-market-in-saudi-arabia-amounts-to-1493bln-fz2eu4su

[31] https://www.sdb.gov.sa/en-us/our-products/projects/productive-loans/products/franchise-program

[32] https://english.aawsat.com/business/4530106-saudi-arabia%E2%80%99s-commercial-franchising-sector-valued-1-billion

[33] https://small-projects.org/%D8%B4%D8%B1%D9%83%D8%A7%D8%AA-%D8%AA%D8%B9%D8%B7%D9%8A-%D9%81%D8%B1%D9%86%D8%B4%D8%A7%D9%8A%D8%B2-%D9%81%D9%8A-%D8%A7%D9%84%D8%B3%D8%B9%D9%88%D8%AF%D9%8A%D8%A9/

[34] The following information is taken from https://topfranchise.com/articles/the-kingdom-of-saudi-arabia/

[35] https://english.aawsat.com/business/4530106-saudi-arabia%E2%80%99s-commercial-franchising-sector-valued-1-billion

[36] https://legacy.export.gov/article?id=Saudi-Arabia-Franchising#:~:text=There%20are%20no%20verified%20figures,have%20franchisees%20in%20Saudi%20Arabia.

[37] https://franchisecenter.sa/sites/default/files/2024-01/case%20study%20.docx.pdf

[38] Published by Royal Decree n°9152

[39] Published by ministerial resolution no. 00591

[40] https://www.tamimi.com/law-update-articles/franchise-arrangements-under-ksa-law/#:~:text=Franchise%20Requirements&text=A%20Franchise%20may%20not%20be,two%20(2)%20separate%20units.

[41] https://www.mondaq.com/saudiarabia/corporatecommercial-law/1105018/franchising-comparative-guide

[42] https://www.tamimi.com/law-update-articles/franchise-arrangements-under-ksa-law/#:~:text=Franchise%20Requirements&text=A%20Franchise%20may%20not%20be,two%20(2)%20separate%20units.

[43] https://www.mondaq.com/saudiarabia/corporatecommercial-law/1105018/franchising-comparative-guide

[44] New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958

[45] https://www.inpi.fr/sites/default/files/Fiche%20PI%20Arabie%20Saoudite%202022.pdf

[46] https://www.saip.gov.sa/en/ip-domains/240/

[47] Riyadh 13321, As Sahafah Olaya St 6531, 3059, Saudi Authority for Intellectual Property, Tel: 920021421

[48] https://www.saip.gov.sa/en/about/brief/

[49] Published by Royal Decree nm./75

[50] Ash Shaikh Hussain Ibn Hasan, King Salman Neighborhood, Riyadh 12444, Saudi Arabia, Tel: +966114406655; e-mail address: info@gac.gov.sa

[51] Royal Decree nm./19 of 16/09/2021

[52] Digital City, Riyadh, 12382, Tel: 8001221111, e-mail address: Suggestions@sdaia.gov.sa

[53] Royal Decree n°M/1


I. Economic data

A. Macro-economic data

- General data[1]

Population 2023: 5,331,203 inhabitants
Area: 10,452 km2
Density: 503 inhabitants/km2
GDP (nominal) 2021: $23.13 billion[2]
GDP/capita 2021: $2,744.764
GDP (PPP) 2021: $72.577 billion
GDP (PPP)/capita 2021: $11,562.146
Growth rate 2021: -7 %
GNI/capita (PPP) 2021: $13,400 [3]
Literacy rate: 95.1 %
HDI (2021): 0.706 (112th)
Life expectancy 2023: 79 years old

- Policy
 
Lebanon is a parliamentary republic, with a faith-based democratic system based on the distribution of powers between the different religious communities (the president is necessarily a Maronite Christian, the prime minister is traditionally a Sunni Muslim and the speaker of parliament is a Shiite Muslim).
 
The Parliament (Chamber of Deputies) is made up of 128 deputies (64 Christians and 64 Muslims), elected for a 4-year term.
 
Michel Aoun was President of Lebanon from October 31, 2016 to October 31, 2022. Since then, Lebanon has no longer had a President of the Republic at its head, and is therefore experiencing a period of presidential vacancy[4].
 
At the time of writing, Najib Mikati has been the Prime Minister  since September 10, 2021[5].
 
- Economic development
 
Internationally, Lebanon has been a member of the UN (since its creation), the International Labor Organization, and applied for membership of the World Trade Organization ("WTO") in 1999. Lebanon has been trying to join the WTO for 24 years. On June 14, 2023, at the 12th WTO Ministerial Conference, the Lebanese Minister of Economy and Trade, Amine Salam, expressed Lebanon's desire to resume negotiations to join the WTO[6].
 
Since 2020, Lebanon has been experiencing a severe economic crisis, caused by the global Covid-19 pandemic crisis and the explosion in the port of Beirut on August 4, 2020, and in 2022 had an inflation rate of 171.2%[7]. Lebanon has one of the highest inflation rates in the world.
 
The Lebanese unemployment rate in 2023 was 30%, and affected young people the most, with a rate of 58% among 15–24-year-olds[8].
 
Lebanon is now classified as a lower middle-income country by the World Bank[9].
 
On April 7, 2023, a preliminary agreement was reached between the IMF and Lebanon for a loan of $3 billion over four years, on condition that Lebanon adopts several reforms with the aim of harmonizing the unemployment rate, consolidating public finances, fighting corruption and restructuring the banking sector[10].
 
- Resources
 
The tertiary sector accounts for more than two-thirds of the Lebanese economy[11]. Services account for 95.8% of GDP, industry for 2.8% and agriculture for 1.4%[12]. Tourism accounts for 20% of Lebanese GDP. After suffering the consequences of the country's economic crisis, the tourism sector enjoyed an upturn in 2022[13].
 
- Population
 
The majority of the population lives on the Mediterranean coast and around Beirut. In 2023, 89.4% of the Lebanese population lived in cities[14].
 
71.69% of the population is aged between 15 and 64, with an average age of 35.8[15].
 
The five most populous cities in Lebanon are Beirut (2,421,000 (2023)[16]),  Tripoli (850,000), Sidon (170,000), Tyr (150,000) and Nabatiyeh (100,000).[17]

- Foreign investment
 
At a regional level, Lebanon is a member of Gafta (Grain and Feed Trade Association, the large Arab free trade zone) and the Union for the Mediterranean.
 
Lebanon's main trading partners are France, the United Arab Emirates and the United States. In 2018, France was the leading investor in Lebanon[18].
 
The European Union and Lebanon signed an association agreement in 2003 (which came into force in 2006), providing for the establishment of a free trade zone in agriculture, services and investment[19].
 
The World Bank's 2019 "Doing Business" report ranked Lebanon as the 143rd most business-friendly country out of 190 economies[20].
 
In 2021, foreign direct investment represented 2.6% of GDP[21]. According to UNCTAD's World Investment Report 2022, foreign direct investment inflows were $273 million in 2021[22].
 
B. Economic data specific to franchising
 
- Historical background
 
Franchising has been developing significantly in Lebanon since the 1990s, in particular through major international brands[23].
 
- Institution
 
The Lebanese Franchise Association (LFA)[24] was founded in 2006 by Lebanese entrepreneurs. The LFA aims to develop franchising in Lebanon and to promote Lebanese franchising throughout the world[25].
 
- Trade shows
 
The Lebanese Franchise Association and the General Union of Chambers of Commerce, Industry and Agriculture held the new Beirut International Franchise Forum (Bifex) for the first time in May 2010.
 
This forum used to be held annually. However, since the economic crisis facing Lebanon, the Lebanese Franchise Association no longer organizes the Beirut International Franchise Forum.
 
- Statistics
 
In 2019, the franchise sector numbered 744 businesses, made up of 299 franchisors and 445 franchisees[26].
 
According to the 2019 Retail Activity Indicators, put together by the Lebanese Franchise Association, five sales indicators grew in the first half of 2019. These are hotel and catering services, which rose by 45.4% compared with the first half of 2018. This was followed by food and beverage sales, up 41.19%; household goods sales, up 4.76%; the luxury goods sector, up 2.92%; and tourism services, up 2.04%[27].
 
- Contract content
 
According to the latest 2014 statistics conducted by the Lebanese Franchise Association, franchisors charged an average franchise fee of $55,000 in Lebanon and $184,000 in foreign markets[28].
 
Royalties average between 5 and 5.5% and marketing costs average 2% of turnover[29].
 
- Economic impact
 
According to the Lebanese Franchise Association, the franchise sector represented a $2.5 billion market in 2019[30].
 
Before the economic crisis, the franchise sector employed 100,000 people. Today, the number of people employed is 35,000, representing 2% of the Lebanese workforce[31].
 
- International
 
Major international brands such as Burger King, Chili's, Domino's Pizza, Hilton and Sheraton are all present in Lebanon[32].
 
Lebanon, and Beirut in particular, attract brands not only for their own market potential, but also as a good base for expansion in the Near and Middle East.
 
Lebanese networks are generally internationally oriented: 44% of franchisors in Lebanon are from Europe, 38% are from the USA and Canada, and 13% are local Lebanese franchisors[33].
 
The Lebanese Franchise Association is a founding member of the Mediterranean Franchise Federation and the Middle East Franchise Association.
 
II. Legal information
 
A. Legal information directly related to franchising
 
- Applicable legislation
 
Lebanon has no specific legislation governing franchising or distribution contracts. Relationships between franchisor and franchisee, or master-franchisor and master-franchisee, are therefore governed by ordinary contract law.
 
The Lebanese Franchise Association has adopted a code of ethics[34], deliberately similar to the European Franchise Code.
 
This code is signed by members of the Lebanese Franchise Association when they join, and is binding on the franchisor, who must give it to the prospective franchisee at the same time as the pre-contractual information document.
 
Franchising is defined as a system of commercialization of goods and/or services and/or technology, based on close and continuous collaboration between financially and legally distinct and independent entrepreneurs, the franchisor and its franchisees, whereby the franchisor grants the franchisee the right and imposes the obligation to operate its business in accordance with its concept. The franchisee must, in exchange for financial consideration, use the franchisor's trade name and/or trademark for goods and/or services, know-how, procedural system and other intellectual and/or industrial property rights, supported by the ongoing provision of commercial and technical assistance, within the framework and according to the provisions of a written franchise agreement concluded for this purpose between the parties.
 
The Lebanese Code of Ethics applies to the master-franchisee/sub-franchisee relationship, but not to the master-franchisor/master-franchisee relationship.
 
- Pre-contractual information

Pre-contractual information for prospective franchisees is not governed by law.
 
The Lebanese Code of Ethics provides for a copy of the Code of Ethics to be given to the prospective franchisee within a reasonable period of time before the contract is signed, together with a written document containing all important information relating to the franchise relationship, to enable the prospective franchisee to make an informed commitment.
 
The Code of Ethics also expressly states that the documents thus provided to the prospective franchisee are binding on the franchisor.
 
- Contract performance
 
As there is no specific legislation, franchise contracts are governed by the Lebanese Code of Obligations and by freedom of contract.
 
The Code of Ethics of the Lebanese Franchise Association sets out the minimum content of a franchise agreement, which must specify the respective rights and obligations of the parties, the goods and/or services supplied to the franchisee, and the duration of the contract, which must be sufficient to enable the franchisee to  pay back his or her investment. Franchise agreements must also set out the terms for renewal and termination of the contract, and for the transfer of the franchised business.
 
- Jurisdiction and applicable law
 
Lebanon has signed and ratified the 1980 Vienna Convention on Contracts for the International Sale of Goods[35]. This Convention applies exclusively to contracts for the sale of goods for professional use (Section 2 of the Convention). The Vienna Convention governs only the formation of international sales contracts and the rights and obligations of seller and buyer. However, the validity of the contract, as well as the effects of the contract on the ownership of the goods sold, are not governed by the Vienna Convention. This Convention overrides national law when the parties have their place of business in States party to the Convention.
 
Lebanon has also ratified the New York Convention on International Arbitration[36], allowing for the recognition and enforcement of arbitral awards made in the territory of party States[37].
 
- Trademarks
 
Lebanese trademarks are registered with the Intellectual Property Office[38], which reports to the Ministry of the Economy. As Lebanon is not a member of the Madrid system, Lebanese trademarks cannot be registered internationally.
 
Lebanon is a signatory to the Nice Agreement concerning the international classification of goods and services[39]. Consequently, for the registration of a Lebanese trademark, reference should be made to the international classification of goods and services of the Nice Agreement. The texts governing the Nice Classification are published online[40] by the World Intellectual Property Organization (WIPO).
 
If the trademark owner is not Lebanese, s/he must be represented by a person residing in Lebanon.
Lebanon has been a member of the Paris Union since 1924. Foreign nationals therefore enjoy the same protection as nationals.
 
The Lebanese Trademark Law of 1924[41] sets out that the registration of a Lebanese trademark is valid for fifteen years and renewable indefinitely.
 
Trademarks are protected under criminal law against counterfeiting and fraudulent imitation; in this context, similarity is equated with outright imitation.
 
Trade names are also protected against counterfeiting and fraudulent imitation.

In Lebanon, trademark applications are handled nationally. The trademark office conducts examinations but may not reject applications on relative grounds. Lebanon allows multi-class trademark registrations.  Lebanese trademark law does not allow for the cancellation of registered trademarks for non-use.To develop a franchise in Lebanon, it is advisable to cover "Business assistance relating to franchising" and "retail services" under class 35, both of which are accepted by the trademark office. Recording a franchising agreement is not compulsory, but trademark license recordal is optional and may enhance effectiveness against third parties. Royalties from trademark-related activities are subject to income tax in Lebanon.

 
B. Peripheral legal data
 
- Competition law

Initially, Lebanon had a high degree of concentration and numerous State monopolies[42].
 
Lebanon adopted a competition law in 2022[43], which puts an end to State monopoly and exclusivity. The law applies both to Lebanese production and distribution activities, and to those carried out outside Lebanon if they have anti-competitive effects in Lebanon. Horizontal and vertical agreements restricting competition, as well as abuses of dominant positions, are now prohibited. Under Sections 7, 9 and 11 of the Competition Act, anti-competitive practices are punishable by fines of up to 10% of the turnover of the companies concerned.
 
The Competition Act provides for the creation of an independent national authority, the National Competition Commission. Once set up, the Commission will oversee the proper functioning of markets and monitor companies.
 
- Personal data
 
Personal data is regulated by the Law on Electronic Transactions and Personal Data[44].
 
Section 1 of the law on electronic transactions and personal data defines personal data as any information enabling a natural person to be identified directly or indirectly, by comparing data or cross-referencing data collected from multiple sources.
 
The law lays down the conditions for the lawful collection, processing, storage and use of personal data. The main condition is the consent of the data subject. With a few exceptions, the data controller must make a prior declaration to the Minister of Economy and Trade before collecting, using and processing personal data.
 
Lebanon does not have an authority responsible for enforcing the Law on Electronic Transactions and Personal Data[45].
 
No adequacy decision has been taken by the European Commission allowing the free transfer of personal data to Lebanon. Therefore, in order to transfer personal data between a member country of the European Economic Area and Lebanon, the European Commission's standard contractual clauses must be incorporated, or binding corporate rules on the protection of personal data must be put in place.
 
- Special provisions for foreign investments
 
The Investment Promotion Law[46] created the Investment Development Agency in Lebanon, which can receive administrative applications for authorization, consent and permits for projects governed by this law, study them from a legal, technical and architectural point of view, and draw up reports on them.
 
The Investment Promotion Act provides for tax exemptions provided that the investment project is aimed at certain sectors and geographical areas defined in Sections 10 to 14 of the Act.
 
Lastly, the Investment Promotion Law allows for the establishment of a global contract between the Lebanese State, represented by the Investment Development Agency, and the investor. Section 17 of the law specifies that, in order to benefit from the global contract system, two Lebanese nationals must be recruited for each foreigner, and registered with the National Social Security Fund. Furthermore, Lebanese nationals must sit on the Board of Directors. The global contract system offers tax reductions and exemptions, including full exemption from income tax and from the distribution of project dividends for up to 10 years.

Main websites
 
- Lebanese Franchise Association: www.lfalebanon.com ;
- Intellectual property: https://www.economy.gov.lb/ar/services/intellectual-property-right/;
- Official statistics: http://www.cas.gov.lb/ ;
- Personal data: https://www.economy.gov.lb/;
- Investment Development Agency: http://investinlebanon.gov.lb/fr;
- World Bank: https://www.banquemondiale.org/fr/home;
- World Trade Organization: https://www.wto.org/indexfr.htm;
- International Trade Administration: https://www.trade.gov/
 

[1] Unless otherwise stated, the data below is taken from https://www.cia.gov/the-world-factbook/countries/lebanon/#economy
[2] https://donnees.banquemondiale.org/pays/liban
[3] https://donnees.banquemondiale.org/indicator/NY.GNP.PCAP.PP.CD
[4] https://perspective.usherbrooke.ca/bilan/servlet/BMAnalyse/3477
[5] Atlas socio-économique des pays du monde, Larousse, 2024 édition
[6] https://www.wto.org/french/news_f/news22_f/ddgxz_15mar22_f.htm
[7] http://www.cas.gov.lb/
[8] https://www.tresor.economie.gouv.fr/Pays/LB/cadrage-general
[9] https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
[10] https://www.lorientlejour.com/article/1305973/pourquoi-le-liban-essaye-t-il-a-nouveau-dadherer-a-lomc-.html
[11] https://www.larousse.fr/encyclopedie/divers/Liban_activit%C3%A9s_%C3%A9conomiques/187610
[12] Atlas socio-économique des pays du monde, Larousse, 2024 edition
[13]https://www.btrade.ma/fr/observer-les-pays/liban/contexte-politique#:~:text=The%20services%20are%20the%20sector,it%20is%20going%20through%20a%20major%20crisis.
[14] https://www.cia.gov/the-world-factbook/countries/lebanon/#geography
[15] Ditto
[16] https://www.cia.gov/the-world-factbook/countries/lebanon/#geography
[17] Unless otherwise stated, data from https://escaledenuit.com/le-top-10-des-plus-grandes-villes-du-liban/
[18] https://www.btrade.ma/fr/observer-les-pays/liban/investir
[19] https://www.tresor.economie.gouv.fr/Pays/LB/acces-au-marche-et-propriete-intellectuelle
[20] https://donnees.banquemondiale.org/indicator/IC.BUS.EASE.XQ?end=2019&start=2019&view=bar
[21] https://donnees.banquemondiale.org/indicator/BX.KLT.DINV.WD.GD.ZS?locations=LB
[22] https://www.btrade.ma/fr/observer-les-pays/liban/investir
[23]https://www.privacyshield.gov/ps/article?id=Lebanon-franchising#:~:text=There%20are%20approximately%20744%20companies,percent%20of%20the%20entire%20GDP.
[24] Chamber of Commerce, Sanayeh, 13ème floor Beirut, tel: +961 1 742 134, e-mail: info@lfalebanon.com
[25] https://www.lfalebanon.com/
[26] https://irp-cdn.multiscreensite.com/bfad6d5d/files/uploaded/Survey-Summary-Booklet.pdf
[27] https://irp-cdn.multiscreensite.com/bfad6d5d/files/uploaded/ARTWORK%20RAI9%20QUICK%20READ%20.pdf
[28] https://irp-cdn.multiscreensite.com/bfad6d5d/files/uploaded/Survey-Summary-Booklet.pdf
[29] Ditto
[30] https://www.trade.gov/country-commercial-guides/lebanon-distribution-sales-channels
[31] Ditto
[32] https://www.trade.gov/country-commercial-guides/lebanon-distribution-sales-channels
[33]https://www.privacyshield.gov/ps/article?id=Lebanon-franchising#:~:text=There%20are%20approximately%20744%20companies,percent%20of%20the%20entire%20GDP.
[34] https://irp-cdn.multiscreensite.com/bfad6d5d/files/uploaded/Code%20of%20Ethics.pdf
[35] United Nations Convention on Contracts for the International Sale of Goods of April 11, 1980
[36] 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards
[37] https://www.international-arbitration-attorney.com/fr/arbitration-in-lebanon/
[38] Lazarieh Building, Ministry of economy and Trade - 4th floor, Beirut, tel: (961 1) 982 295, e-mail: wamil@economy.gov.lb
[39] Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks of 1957
[40] https://www.wipo.int/classifications/nice/nclpub/en/fr/
[41] Law n°2385
[42] https://www.unescwa.org/publications/competition-lebanon
[43] Law n°2022/281
[44] Law n°81/2018
[45] https://www.dentons.com/en/insights/alerts/2019/january/21/new-lebanese-law-on-etransactions-and-data-protection
[46] Law n°360 of August 16, 2001

Updated on 02/15/2024

LEBANON

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