Monsha’at, Malaysia’s Pernas Sign Franchise Agreement at Biban24

The Small and Medium Enterprises General Authority (Monsha’at) signed a cooperation agreement with Pernas, Malaysia’s franchise development agency, during the Biban24 Forum in Riyadh on November 6, 2024. The agreement aims to strengthen the franchise sector by exchanging knowledge, offering training programs, and facilitating brand expansion between Saudi Arabia and Malaysia.

Context and Background

The Biban24 Forum, held under the theme “Global Destination for Opportunities,” serves as a key platform for entrepreneurs and small and medium enterprises (SMEs) to learn about government initiatives and connect with local and international entities. Monsha’at, the Saudi authority dedicated to SME development, continually seeks partnerships to enhance the Kingdom’s business ecosystem.

Malaysia’s Pernas (Perbadanan Nasional Berhad) is a government-owned agency focused on franchise development. This agreement marks a significant step in fostering international collaboration in the franchise sector, aligning with Saudi Arabia’s economic diversification goals.

Key Details

The cooperation agreement includes several key components: exchanging knowledge and expertise, offering training programs and consulting services to support franchise development in Saudi Arabia, and inviting franchisors to participate in exhibitions and specialized workshops hosted by both parties. Additionally, it facilitates the participation of brands seeking to expand into local and international markets.

The agreement was signed during Biban24, which provides opportunities for entrepreneurs to explore the latest government initiatives and business-enabling programs. The forum also fosters connections between local and international entities to achieve the Kingdom’s economic development goals.

Implications and Impact

This partnership is expected to boost the franchise sector in Saudi Arabia by providing Saudi entrepreneurs with access to Malaysian expertise and markets. It also opens doors for Malaysian brands to enter the Saudi market, promoting bilateral trade and investment. The collaboration reflects Saudi Arabia’s broader efforts to attract international partnerships and enhance the competitiveness of its SME sector.

Furthermore, the agreement supports the goals of Saudi Vision 2030 by diversifying the economy, creating job opportunities, and empowering entrepreneurs. It underscores the Kingdom’s commitment to becoming a global destination for business and investment.

Vision 2030 Alignment

This agreement directly supports Saudi Vision 2030’s objectives of economic diversification and SME development. By strengthening the franchise sector through international cooperation, Monsha’at and Pernas are contributing to a vibrant business environment that fosters innovation, entrepreneurship, and sustainable growth. Such partnerships are vital for positioning Saudi Arabia as a global hub for opportunities and achieving the Kingdom’s long-term prosperity.

20 Questions

Q1. What is Monsha’at?

A1. Monsha’at is the Small and Medium Enterprises General Authority of Saudi Arabia, responsible for developing and supporting SMEs in line with Vision 2030.

Q2. What is Pernas?

A2. Pernas is Malaysia’s franchise development agency, a government-owned entity that promotes franchise growth and internationalization.

Q3. When was the agreement signed?

A3. The agreement was signed on November 6, 2024, during the Biban24 Forum in Riyadh.

Q4. Where was the agreement signed?

A4. It was signed at the Biban24 Forum, held in Riyadh, Saudi Arabia.

Q5. What is Biban24 Forum?

A5. Biban24 is a major forum for entrepreneurs and SMEs, themed “Global Destination for Opportunities,” showcasing initiatives and fostering connections.

Q6. What are the main goals of the agreement?

A6. The agreement aims to enhance collaboration in the franchise sector through knowledge exchange, training, and facilitating brand expansion.

Q7. How will the agreement support franchise development in Saudi Arabia?

A7. It will provide training programs, consulting services, and opportunities for franchisors to participate in exhibitions and workshops.

Q8. What benefits does the agreement offer to Saudi entrepreneurs?

A8. Saudi entrepreneurs will gain access to Malaysian expertise, training, and potential market expansion opportunities.

Q9. What benefits does the agreement offer to Malaysian franchisors?

A9. Malaysian franchisors can explore the Saudi market and participate in exhibitions and workshops to expand their brands.

Q10. How does this agreement align with Saudi Vision 2030?

A10. It supports economic diversification, SME growth, and job creation, key pillars of Vision 2030.

Q11. What types of training programs will be offered?

A11. The agreement includes training programs and consulting services focused on franchise development and best practices.

Q12. Will there be joint exhibitions and workshops?

A12. Yes, both parties will invite franchisors to participate in exhibitions and specialized workshops hosted by either side.

Q13. How does Biban24 Forum support SMEs?

A13. Biban24 provides a platform for SMEs to learn about government initiatives, business programs, and connect with international entities.

Q14. What is the significance of the franchise sector for Saudi Arabia?

A14. The franchise sector contributes to economic growth, entrepreneurship, and job creation, supporting Vision 2030 goals.

Q15. How many SMEs does Monsha’at support?

A15. Monsha’at supports a wide range of SMEs across Saudi Arabia, contributing to over 99% of the private sector enterprises.

Q16. What is the role of Pernas in Malaysia’s economy?

A16. Pernas drives franchise development, helping Malaysian brands grow domestically and internationally.

Q17. Will this agreement lead to more Saudi-Malaysia partnerships?

A17. It sets a foundation for future collaborations, enhancing bilateral trade and investment in various sectors.

Q18. How can Saudi brands benefit from this agreement?

A18. Saudi brands can gain exposure to Malaysian markets and leverage Pernas’s network for expansion.

Q19. What are the next steps after signing the agreement?

A19. Implementation will involve joint committees to execute training, workshops, and exchange programs as outlined.

Q20. How does this agreement reflect Saudi Arabia’s global engagement?

A20. It demonstrates the Kingdom’s commitment to international cooperation and positioning as a global destination for opportunities.

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