Saudi entertainment industry set to power economic diversification

The entertainment boom has contributed to a rise in property values across the Kingdom, especially in areas adjacent to major attractions. (SPA)
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Updated 17 May 2025
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Saudi entertainment industry set to power economic diversification

  • Entertainment sector set to generate 450,000 jobs and contribute 4.2 percent to Kingdom’s GDP by 2030

RIYADH: Saudi Arabia’s growing entertainment sector is set to become a key catalyst for growth across various industries and a central pillar in the Kingdom’s broader economic diversification strategy, according to experts.

Strengthening the industry is vital as Saudi Arabia continues to shift away from its long-standing dependence on oil revenues, aligning with its ambitious efforts to build a more resilient and diversified economy.

The rapid growth of the Kingdom’s entertainment sector is underscored by recent data and forecasts, including a report by AlixPartners which revealed that 33 percent of Saudi consumers plan to increase spending on out-of-home entertainment — significantly higher than the global average of 19 percent.

Supporting this trend, data from the Ministry of Commerce showed that commercial registrations in the Kingdom’s arts and entertainment sector rose by 20 percent in 2024 compared to 2023. 

Notably, innovative arts and entertainment activities saw a 30 percent increase, reaching 4,188 registered entities, while amusement park activities grew by 26 percent, totaling 6,108 registrations.

In an interview with Arab News, Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little, highlighted the sector’s potential to generate a ripple effect across hospitality, tourism, and retail, as well as real estate, and technology.

“Major events and attractions are drawing both international and domestic tourists — contributing directly to the Kingdom surpassing its original target of 100 million annual visitors by 2030, an achievement reached seven years ahead of schedule,” said Khan. 

Major events and attractions are drawing both international and domestic tourists.

Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at consulting firm Arthur D. Little

He added: “This surge in tourism fuels demand for hospitality infrastructure, including hotels, restaurants, and local transport, while extending average visitor stay and spend.”  The Arthur D. Little official added that the growth in the entertainment sector could also propel the retail industry, with entertainment-led foot traffic expected to drive commercial activity in malls, high streets, and mixed-use developments. 

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa, echoed similar sentiments, noting that Saudi Arabia’s entertainment industry will spur growth in adjacent sectors by driving demand for complementary services.

He added that emerging entertainment destinations are helping cities like Riyadh and Jeddah position themselves as lifestyle hubs with the potential to compete on a global scale.

“Large-scale events and festivals drive hotel occupancy and airline bookings, while lifestyle venues anchor foot traffic in malls and high streets. Technology adoption accelerates through the demand for ticketing, crowd management, and immersive experiences,” said Thibault. 

He added: “Entertainment is a key downstream activator for mega-events and is intricately intertwined with the urban fabric of these mega events, enhancing the hospitality, tourism, and retail sectors.” 

Looking ahead, the Ministry of Investment projects that the entertainment sector could generate 450,000 jobs and contribute 4.2 percent to Saudi Arabia’s GDP by 2030.

Impacts: retail spending, real estate and FDI 

Thibault emphasized that Saudi Arabia’s youthful population — most of whom are under the age of 35 — will be a key driver of growth in the Kingdom’s entertainment sector and could significantly boost retail spending.

He noted that for young Saudis, entertainment is not viewed as a seasonal luxury, but rather as a regular and essential part of their spending habits.

“As more venues and formats become available, consumers are reallocating discretionary income from international travel to local entertainment. This ‘localization of lifestyle’ is increasing the frequency and variety of spending, from dining and merchandise to experiential add-ons,” said Thibault. 

Khan expressed similar views and added that rising disposable income among people in Saudi Arabia is empowering consumers with the means to pursue experience-rich lifestyles. 

“This financial capacity is enabling a broader cultural shift — especially among younger Saudis — toward valuing experiences over possessions, and prioritizing social, live, and recreational activities as a core part of modern living,” he said. 

Khan added: “What was once a limited and largely outbound market is now being redirected into the local economy — creating a dynamic, self-sustaining entertainment ecosystem at home.”

Commenting on its impact on the real estate sector, Thibault stated that the entertainment industry is reshaping property demand by revitalizing underutilized land, promoting mixed-use development models, and enhancing the attractiveness and viability of secondary cities.

Thibault further noted that developers are increasingly incorporating dedicated entertainment zones and hybrid residential complexes into their plans, viewing them as key drivers of footfall and community engagement.

“This enhances land value, accelerates absorption rates, and encourages long-term leasing. Moreover, large entertainment projects are contributing to the emergence of new urban centers that align with the Kingdom’s regional development goals,” said Thibault. 

Khan pointed out that the entertainment sector has already reshaped the Kingdom’s real estate landscape, both directly and indirectly. 

He said that the entertainment boom has contributed to a rise in property values across the Kingdom, especially in areas adjacent to major attractions. 

Khan further said that large-scale entertainment destinations — such as those under Qiddiya, Diriyah, AlUla, and others — are also catalyzing new hospitality and retail clusters, creating demand for hotels, serviced apartments, dining spaces, and lifestyle-driven real estate. 

“In addition, the rise of cultural and live event venues across second-tier cities and emerging districts is stimulating regional real estate development, encouraging urban sprawl and infrastructure investment beyond the major metropolitan areas,” said Khan. 

In terms of the potential of attracting foreign direct investments, Thibault said that the Kingdom’s entertainment sector presents a “rare greenfield” opportunity in a G20 economy, supported by policy backing, untapped demand and significant scale. 

“As regulatory clarity improves and exit mechanisms mature, we anticipate a rise in joint ventures, venture capital deployment in entertainment startups, and the entry of global operators, making entertainment a cornerstone of the Kingdom’s FDI narrative,” said the Oliver Wyman official. 

Khan said that Saudi Arabia’s sovereign wealth fund is playing a catalytic role — both directly and through its giga-projects and portfolio companies — by investing in and forming strategic partnerships with foreign players across the entertainment spectrum. 

He added that the efforts of PIF are facilitating market entry and localization of globally leading companies in key areas such as theme parks, live entertainment, attractions, and hospitality. 

Large-scale events and festivals drive hotel occupancy and airline bookings.

Guillaume Thibault, partner and head of Sports and Entertainment at Oliver Wyman for India, the Middle East, and Africa

In September, the PIF launched the National Interactive Entertainment Co. to create immersive storytelling experiences rooted in the Kingdom’s heritage and Islamic history. 

The newly established firm, known as QSAS, will focus on developing, owning, and operating world-class interactive exhibitions throughout the Kingdom, the wealth fund said in a statement at that time. 

“The entertainment sector is emerging as a key gateway for FDI in Saudi Arabia, underpinned by strong market fundamentals, government-backed infrastructure, and a robust regulatory push aligned with Vision 2030,” said Khan. 

In January, Saudi Arabia’s General Entertainment Authority unveiled 29 investment opportunities targeting six key sectors of the industry. 

The targeted sectors include facilities, destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers.

Cinema and journey beyond 

Speaking to Arab News, Thibault noted that Saudi Arabia has rapidly emerged as one of the fastest-growing cinema markets in the world. 

He added that this momentum could pave the way for a new wave of industry growth by encouraging local content creation, supported through public-private co-investment models and enhanced by regulatory incentives for film production and post-production infrastructure.

“Elevating local narratives while attracting international studios can simultaneously boost soft power and develop a self-sustaining film economy,” said Thibault. 

Khan echoed similar views and said that Saudi Arabia currently has more than 600 screens and has witnessed a doubling of both ticket sales and box office revenues between 2019 and 2024.

“Expanding cinema access to underserved regions and enhancing operators’ business models — by tapping into diversified revenue streams such as F&B, experiential offerings, and advertising — will be essential for long-term profitability and sector sustainability,” said Khan. 

He added: “Additionally, forging international partnerships through co-productions, location incentives, and distribution alliances would further strengthen the overall industry while enabling knowledge transfer and job creation.” 

Thibault emphasized that Saudi Arabia should ambitiously expand its entertainment landscape beyond traditional formats such as cinema by investing in immersive, experience-driven offerings. 

These include esports arenas, mega-theme parks like those planned in Qiddiya, mixed-reality shows, adventure tourism, and platforms centered around heritage-based storytelling.


Saudi Arabia opens business travel channel with Syria to boost investment

Updated 22 July 2025
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Saudi Arabia opens business travel channel with Syria to boost investment

  • Syrian businessmen can apply for travel licenses directly at embassy in Damascus
  • Kingdom to organise Saudi-Syrian investment forum in Damascus

RIYADH: Saudi Arabia will introduce travel permits for businessmen and investors from Syria to deepen bilateral relations and facilitate mutual visits. 

Syrian businessmen can now apply for travel licenses directly at the embassy in Damascus, the Kingdom’s embassy said in an official post on X. Meanwhile, Saudi investors seeking to visit Syria can register via the Interior Ministry’s e-platform. 

Saudi Arabia and Syria have made significant strides in restoring diplomatic ties, with the Kingdom reopening its embassy in Damascus in 2024 after a 12-year hiatus. In April, Saudi Arabia and Qatar announced a joint initiative to settle Syria’s $15 million debt to the World Bank as part of broader efforts to support the financial recovery of the war-torn nation. 

“The embassy announces the availability of travel permits for interested Saudi and Syrian businessmen and investors, enabling them to exchange visits and explore investment opportunities in the two brotherly countries,” the statement said. 

The Kingdom’s Ministry of Investment announced that it will organize a Saudi-Syria Investment Forum in Damascus to explore cooperation opportunities to promote sustainable development in the two countries.

In an X post, the ministry said the forum is expected to witness significant participation from public and private sector entities on both sides.

In June, Saudi Minister of Investment Khalid Al-Falih held a virtual meeting with his Syrian counterpart, Mohammad Al-Shaar, to explore investment partnerships and discuss opportunities for collaboration across public and private sectors. 

Al-Falih affirmed the Kingdom’s commitment to helping stabilize and develop the Syrian economy, adding that stronger ties would serve the mutual interests of both countries and promote regional economic prosperity. 

Further aiding Syria’s economic recovery, US President Donald Trump signed an executive order in June to dismantle sanctions against the country. 

Following the announcement, Syrian Minister of Foreign Affairs and Expatriates Asaad Hassan Al-Shaibani posted on X that the decision by the US administration would support Syria’s economic revival and reintroduce the country to the global community. 


Most Gulf bourses fall on US tariff concerns, weaker oil

Updated 22 July 2025
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Most Gulf bourses fall on US tariff concerns, weaker oil

BENGALURU: Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the EU’s trade deal with the US ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.

The EU is exploring broader counter-measures against the US as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.

US President Donald Trump’s imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.

Dubai’s main share index eased 0.3 percent, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.

Index heavyweight Dubai Islamic Bank dropped 1.2 percent while budget carrier Air Arabia fell over 3 percent, ending a five-session winning streak.

In Abu Dhabi, the index was under pressure as a wave of earnings releases this week kept many investors on the sidelines.

Qatar’s stock index reversed early losses to finish 1.1 percent higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.

Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank soared 6 percent, rising for a fourth straight session after reporting upbeat results.

Outside the Gulf, Egypt’s blue-chip index declined 1 percent, pulling back from a record high. 


Egypt current account deficit narrows to $13.2bn in 9 months through March

Updated 22 July 2025
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Egypt current account deficit narrows to $13.2bn in 9 months through March

DUBAI: Egypt’s current account deficit narrowed to $13.2 billion in the nine months through March 2025, from $17.1 billion in the same period a year earlier, Egypt’s central bank said on Tuesday.

The bank attributed the slimmer deficit to an 86.6 percent increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to 23 percent higher tourism revenue.

Oil exports declined by $430.5 million to $4.2 billion, from $4.6 a year earlier, while oil imports increased by $1.2 billion to $14.5 billion, from $9.7 billion.

Egypt has been seeking to import more fuel oil and liquefied natural gas this year to meet its power demands after enduring blackouts during periods of shaky gas supply in the past two years.

Concerns intensified after the supply of natural gas from Israel to Egypt dropped during Israel’s air war with Iran.

Suez Canal revenues declined to $2.6 billion, from $5.8 billion in a year earlier, as revenue from the vital global trade route continued to suffer because of Yemeni Houthis’ attacks on ships in the Red Sea.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenue reached $12.5 billion from July 2024 through March 2025, compared to $10.9 billion in the same period a year earlier.

Remittances from Egyptians working abroad increased to $26.4 billion, from $14.5 billion.

Foreign direct investment hit $9.8 billion, compared to $23.7 billion.


Closing Bell: Saudi main index slips to 10,843

Updated 22 July 2025
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Closing Bell: Saudi main index slips to 10,843

  • Parallel market Nomu dropped 340.01 points to close at 26,740.01
  • MSCI Tadawul Index declined by 1.33% to 1,390.20

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 137.97 points, or 1.26 percent, to close at 10,843.20. 

The total trading turnover of the benchmark index was SR4.92 billion ($1.31 billion), with 25 of the listed stocks advancing and 231 declining. 

The Kingdom’s parallel market, Nomu also dropped 340.01 points to close at 26,740.01. 

The MSCI Tadawul Index declined by 1.33 percent to 1,390.20. 

The best-performing stock on the main market was Sport Clubs Co., which debuted on the benchmark index on Tuesday. The firm’s share price advanced by 24 percent to SR9.30. 

The share price of Tourism Enterprise Co. also rose by 6.25 percent to SR1.02. 

Riyadh Cables Group Co. saw its stock price climb by 1.92 percent to SR132.50. 

The share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, declined by 5.71 percent to SR29.38. 

On the announcements front, Etihad Etisalat Co., also known as Mobily, announced its net profit for the first half of the year reached SR1.59 billion, representing a 22.94 percent increase compared to the same period in 2024. 

In a Tadawul statement, Mobily attributed the rise in net profit to increased revenues across all business segments and its growing customer base. 

Mobily saw its stock price edge up by 1.90 percent to SR56.25. 

Saudi Automotive Services Co. said its net profit for the first half witnessed a year-on-year rise of 48.64 percent to SR33.98 million. 

According to SASCO, the rise in net profit was driven by a higher number of service stations, strong sales from its SASCO Palm and transportation segments, as well as an increase in the selling prices of diesel. 

The share price of SASCO rose by 1.48 percent to SR55. 

Dar Almajed publishes IPO prospectus 

Dar Almajed Real Estate Co. has published the prospectus for its initial public offering, which will list 90 million shares with a nominal value of SR1 each on the main market. 

The development follows the Kingdom’s Capital Market Authority’s approval for the company to float 30 percent of its SR300 million capital in March. 

The book-building process commenced on June 29 and will conclude on Aug. 4. 

The retail subscription period will run from Aug. 14 to 18. 

The company has appointed Saudi Fransi Capital as financial adviser, lead manager, institutional bookrunner, and underwriter for the IPO.


Saudi delivery volumes surge to 101m in Q2 amid logistics push

Updated 22 July 2025
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Saudi delivery volumes surge to 101m in Q2 amid logistics push

RIYADH: Saudi Arabia’s delivery sector processed more than 101 million orders in the second quarter of 2025, driven by surging e-commerce demand and ongoing investments in logistics infrastructure, official data showed. 

According to the latest report from the Transport General Authority, Riyadh accounted for 45.04 percent of the total delivery volume, followed by Makkah at 21.17 percent and the Eastern Province with 15.87 percent. 

Saudi Arabia’s delivery and rail sector expansion aligns closely with the National Transport and Logistics Strategy, which aims to position the Kingdom as a global logistics hub by 2030.  

Key NTLS goals include increasing the sector’s gross domestic product contribution to 10 percent, expanding rail networks to 8,080 km, boosting port throughput to 40 million Twenty-foot Equivalent Units annually, and enhancing air cargo capacity beyond 4.5 million tonnes.  

Other regions contributed smaller shares to the total delivery volume in the second quarter, including Al Madinah at 4.65 percent, Asir at 3.56 percent, and Al Qassim at 2.89 percent. 

Northern and less populated areas recorded modest volumes, with Al Baha at 0.21 percent, Northern Borders at 0.54 percent, Najran at 0.66 percent, and Al Jouf at 0.77 percent.  

This growth in delivery activity coincides with broader momentum in Saudi Arabia’s transport and logistics infrastructure. In the first half of 2025, Saudi Arabia Railways recorded over 7.9 million passengers across 21,205 passenger train trips, an 8 percent increase from the previous year.  

The rail network also supported the 1446 Hajj season, transporting over 4.3 million pilgrims via the Haramain High-Speed Railway and nearly 5.1 million pilgrims through the Mashaer Train network.  

On the freight side, SAR moved more than 14.9 million tonnes of cargo during the same period, marking a 13 percent year-on-year increase. 

These logistics gains were reinforced by Saudi Arabia’s active participation in key industry events and strategic partnerships with local and international firms.  

SAR’s involvement in major exhibitions and forums, alongside collaborations with companies such as STC, Lucid, Turkish Airlines, and SDAIA, underscores the Kingdom’s push to elevate transport capabilities and digital integration.  

Additionally, SAR’s recognition through ISO certifications and national quality awards reflects the growing emphasis on service excellence and governance in the sector. 

Supported by regulatory reforms, digital transformation, and infrastructure investment, the National Transport and Logistics Strategy aims to leverage Saudi Arabia’s strategic location to enhance multimodal connectivity and position the Kingdom among the world’s top ten in the Global Logistics Performance Index.