Chipotle Mexican Grill is set to make its Middle Eastern debut in 2024, bringing its signature burritos and tacos to Dubai and Kuwait through its inaugural franchise agreement. The American chain inked a deal on Tuesday with Kuwait-based Alshaya Group, paving the way for expansion across the region.

Until now, Chipotle has maintained full ownership and operation of its restaurants, boasting a portfolio of over 3,000 locations in the United States and more than 50 internationally. This franchise agreement marks a shift in strategy, with the company expressing interest in exploring similar partnerships globally.

Alshaya Group, a prominent player in the Middle Eastern retail landscape, also holds partnerships with Starbucks, Shake Shack, Victoria's Secret & Co, and American Eagle Outfitters, operating outlets for these brands throughout the Middle East and Europe. This new venture with Chipotle further solidifies Alshaya's position as a key partner for American brands seeking entry into the region.

News of the franchise deal sent Chipotle's shares up approximately 1% in premarket trading, indicating positive investor sentiment towards the company's expansion plans.