When Saudi Arabia established the General Entertainment Authority in 2016, many doubted its potential impact, as the nation was just beginning to explore the entertainment sector. Fast forward to today, and Saudi Arabia has emerged as a leader in leisure and entertainment across the Middle East and North Africa, fueled by bold investments and strategic drives under Vision 2030.
Through this visionary program, the Kingdom plans to channel $64 billion into the entertainment industry by the decade’s end, with the promise of creating over 100,000 new jobs. From expansive entertainment hubs in major cities to a flourishing cinema industry, Saudi Arabia demonstrates how proactive regulatory efforts can turn an emerging sector into a cornerstone of economic and cultural development.
SEVEN’s Ambitious Expansion
A significant turning point in Saudi Arabia’s entertainment journey was the creation of Saudi Entertainment Ventures (SEVEN) in 2017. Supported by the Public Investment Fund, SEVEN aims to invest $13.3 billion with global partners to craft 21 comprehensive entertainment destinations, comprising over 150 attractions across 14 Saudi cities by the decade’s conclusion.
In a noteworthy move in 2023, SEVEN acquired 85 cinema screens from AMC Entertainment Holdings in Saudi Arabia, reinforcing its dedication to enhancing the Kingdom’s cinematic landscape. “The acquisition reflects SEVEN’s long-term strategy to offer unparalleled experiences to residents and visitors, aligning with the Saudi Vision 2030 objectives,” stated Abdullah Al-Dawood, chairman of SEVEN.
Additionally, SEVEN reached a landmark agreement with Hasbro Inc. to introduce Play-Doh-themed entertainment centers nationwide, aiming to foster creativity among children while offering engaging family experiences. These centers will feature multi-level playscapes, creativity stations, and sensory discovery spaces, along with a café for parents.
In May, Qiddiya Investment Co., also a PIF entity, merged with SEVEN to bolster Saudi Arabia’s entertainment landscape and expedite the development of a multi-billion-dollar project. This merger is part of a broader strategy to promote a culture of playfulness and joy, contributing positively to societal well-being.
The Cinematic Revolution
Since the first cinema hall opened in Saudi Arabia in 2018, the sector has seen remarkable growth, generating approximately $240 million in 2023. The number of cinema screens has soared from zero to over 600, marking substantial infrastructural growth. Saudi Arabia now boasts the 15th largest box office market globally.
Despite the challenges of the COVID-19 pandemic, Saudi Arabia was the only cinema market worldwide to record box office gains in 2020, doubling the number of theater screens. The expansion of cinemas extends beyond major cities to include 22 cities across the Kingdom, underscoring Saudi Arabia’s rapid advancement in establishing a vibrant cinema industry.
In February, MEFIC Capital launched the Saudi Film Fund with a $100 million capital injection, 40 percent of which is sourced from the Cultural Development Fund. This initiative aims to elevate local productions to international standards, marking the Cultural Fund’s inaugural investment endeavor.
Global Opportunities Await
Foreign companies eyeing Saudi Arabia’s entertainment sector have immense opportunities due to the industry’s emerging stage. Opportunities span the entire value chain, from design and development to operations. Some companies have introduced their entertainment brands to the Saudi market, leveraging their reputation and expertise.
Notable examples include Majid Al Futtaim’s VOX Cinemas and Magic Planet entertainment centers, which have successfully launched in the Kingdom. Companies are also partnering with local developers to license their intellectual properties, as seen with Dragon Ball in Qiddiya City and Mattel with SEVEN.
Saudi Arabia’s entertainment sector is poised for significant growth with major projects like Qiddiya City, a vast entertainment, sports, and cultural destination near Riyadh. Featuring attractions such as Dragon Ball and Six Flags theme parks, it is expected to draw millions of visitors annually, establishing Saudi Arabia as a global entertainment hub.
This rapid transformation into a global entertainment hub underscores Saudi Arabia’s commitment to economic diversification and cultural enrichment. With ambitious projects like Qiddiya City and SEVEN’s extensive developments, the Kingdom is set to attract millions of visitors, cementing its leadership in the entertainment industry. This strategic vision not only enhances the quality of life for its citizens but also positions Saudi Arabia as a premier destination for global entertainment and leisure.
