Beyond the U.S: Why Canadian Brands Must Look to the Middle East for Growth
- amerbitar
- Mar 12
- 4 min read
For decades, Canadian brands seeking international expansion have primarily looked to the United States. The shared language, geographical proximity, and trade agreements like USMCA (formerly NAFTA) have made it a natural choice. However, in an increasingly unpredictable global economy, over-reliance on the U.S. presents growing risks. This has been evident with shifting trade policies, including the Trump administration's past tariffs and the recently announced 25% tariff on all Canadian imports—adding further uncertainty for Canadian businesses.
As economic volatility and protectionist policies reshape trade with the US, Canadian companies must explore new markets to mitigate risks and sustain long-term growth. This has fueled a renewed call for diversification beyond North America, with regions like Africa, Asia, and the Middle East emerging as prime opportunities. Today, Africa and the Middle East stand among the fastest-growing consumer markets, offering untapped potential for Canadian brands ready to expand their global footprint.
Why the Middle East?
The Middle East, home to over 450 million people and some of the world’s highest GDP per capita nations, is undergoing a rapid economic transformation. The Gulf Cooperation Council (GCC)—led by Saudi Arabia and the UAE—boasts a combined GDP and is projected to more than double to $13 trillion by 2050. As the region aggressively diversifies beyond oil, significant investments in infrastructure, tourism, technology, and consumer markets are fueling a surging demand for international brands across key sectors such as retail, food, technology, and professional services.
Trade between Canada and the Middle East is also expanding. In 2023, the export value of Canada to GCC countries was US$ 3.68B, with sectors like food, retail, and technology experiencing strong demand. However, this represents only a fraction of the region’s potential. As Canada faces increasing economic uncertainty due to the recently announced 25% U.S. import tariffs and escalating trade tensions, the Middle East offers a strategic alternative. By strengthening ties with this rapidly growing market, Canadian companies and brands can diversify their global footprint, reduce reliance on the U.S., and safeguard long-term growth amidst shifting geopolitical dynamics.
Expanding Through Licensing Entry Strategy!
Many Canadian brands, such as Tim Hortons, and Aldo, have successfully expanded into the Middle East through franchising. However, numerous other Canadian companies remain hesitant, often wary of navigating a market that differs significantly in culture, consumer behavior, and business practices.
For those seeking a low-risk and cost-effective entry strategy, licensing presents an attractive alternative. Unlike franchising, which requires significant operational investment, licensing allows Canadian brands to expand into the Middle Eastern market while minimizing financial risk and local management complexities. By partnering with established regional players, Canadian businesses can leverage local expertise, accelerate market penetration, and build brand presence without the challenges of direct market entry.
What is the process to expand?
Expanding into the Middle East requires a strategic and well-structured approach to ensure long-term success. Canadian brands looking to enter this dynamic market through licensing should follow these key steps:
First—Market Research & Market Entry Strategy
Identify key consumer preferences and cultural nuances.
Evaluate competitive brands already operating in the region.
Identify the potential licensing partners.
Second—Identify the Right Licensing Partner
Look for established regional distributors, manufacturers, retailers, or operators with experience in brand licensing.
Ensure alignment in brand values, business goals, and market expertise.
Third—Define Licensing Terms & Agreements
Structure agreements that outline brand usage rights, royalties, and marketing commitments.
Ensure legal compliance with Middle Eastern business laws and intellectual property protections.
Fourth—Develop a Market-Specific Strategy
Adapt branding, packaging, and marketing to cater to local tastes and consumer behaviors.
Leverage digital and social media platforms to build brand awareness.
Fifth—Launch & Scale Operations
Execute a phased rollout with a focus on high-potential markets like Saudi Arabia, UAE, Qatar, and Egypt.
Monitor performance through sales data and customer feedback.
Expand product offerings and distribution channels based on market response.
Understanding the Business Culture & Consumer Behavior
The Middle East has a unique business culture that emphasizes relationship-building, trust, and long-term partnerships. Understanding these cultural nuances is essential for successful market entry.
Personal Relationships Matter: Business deals often require face-to-face meetings, and strong personal connections significantly impact decision-making.
Consumer Preferences: The Middle Eastern consumer is highly brand-conscious, values quality and authenticity, and is influenced by social media and influencers.
Islamic Business Practices: Brands must consider Halal certification for food, cosmetics, and personal care products, and modesty considerations for fashion and advertising.
Influencer & Social Media Marketing: Partnering with regional influencers can increase brand awareness and drive sales.
Bilingual Advertising: Brands should create Arabic and English marketing content to cater to both local and expatriate audiences.
Seasonal & Cultural Promotions: Aligning marketing campaigns with Ramadan, Eid, and other religious and national occasions can significantly boost brand visibility and sales.
Luxury Positioning: The Middle East is known for its affluent consumer base, and branding strategies should emphasize quality, exclusivity, and premium experiences.
Seizing the Middle Eastern Opportunity
As Canada faces increasing economic uncertainty and escalating trade tensions with the U.S., expanding into the Middle East is a strategic imperative. With its booming economies, affluent consumer base, and rising demand for international brands, the Middle East presents a high-growth, untapped frontier for Canadian businesses seeking sustainable global expansion.
Licensing offers a low-risk and cost-effective pathway for Canadian brands to enter this dynamic market. By leveraging established regional partners, businesses can navigate cultural nuances, bypass operational complexities, and accelerate brand growth with minimal financial exposure. However, achieving success necessitates a profound comprehension of market trends, consumer behavior, and regulatory frameworks—critical elements that can significantly impact a brand's entry into the region.
The time to act is now. Companies that seize this opportunity today will gain a competitive edge, diversify their revenue streams, and secure long-term success in one of the world’s fastest-growing markets. Whether you're a retail brand, food company, tech startup, or lifestyle business, the Middle East presents endless opportunities—but only for those willing to take the risk.
At BBM Licensing, we specialize in helping brands successfully expand into the Middle East through strategic licensing, brand management, and regional partnerships. Schedule a FREE 1-hour consultation with BBM Licensing to explore how your brand can thrive in this high-potential market.
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