Media Sector in Saudi Arabia: Leading Opportunities in 2025 For Business Expansion

Saudi Market Outlook

19 Jan 2025

Dunya Hassanein

Explore media sector opportunities in Saudi Arabia. With a $23B market by 2026, growing digital media, gaming, and adtech, the Kingdom is a global leader.

Regionally, Saudi Arabia is in the lead in the media sector, currently controlling a share of 30% of the MENA market. It is believed to be valued at SAR 17.4 billion ($4.6 billion), with projections to expand at a CAGR of 6.7% to reach $23.0 billion in 2026.

Mirroring the growth trend seen in traditional media, the digital media sphere in Saudi Arabia is becoming increasingly mature, with ample opportunities left to be captured in various media subsegments such as advertising, video, and gaming.

This growth push is primarily due to a growing emphasis on increasing local media content output to boost the media industry’s value generation and retention.

Strong Demand for Audiovisual Services Unlocks Opportunities in Digital Media

As a driver of sustainable development, the creative economy in Saudi has focused on enhancing content creation, distribution, and consumption. This trend is amply epitomized in the audiovisual services sector in Saudi Arabia, which represents a cornerstone of the creative economy.

With Saudi audiences actively on the quest for Arabic-language video content, authorities are stepping up efforts to respond to this latent demand, and so are major industry actors who are increasingly cementing their in-market activities.

It comes as no surprise that the Shahid VIP media streaming platform is one of the biggest players in the sector, surpassing even global actors like Netflix with a 22% share in the MENA streaming market. Looking ahead, the over-the-top (OTT) and on-demand video format is anticipated to gain its highest revenue growth of nearly $541 million in 2025.

And this is only one piece of the puzzle.

The country is sparing no efforts to create an integrated environment that enhances the infrastructure of the filmmaking industry, from pre-production and post-production all the way to screening and distribution. This also includes film festivals.

Notable examples include the Red Sea International Film Festival, held annually in Jeddah. It represents one of the key investments in this sector, driving overseas interest and improving competitiveness in the art scene locally and internationally.

Overall, the nascent cinema industry in Saudi Arabia is benefiting from strong governmental support, with the market expected to grow to $1.29 billion by 2033.

Programs like Film AlUla highlight Saudi Arabia’s rich cultural and historical heritage while promoting Saudi as a prime film production destination. Key projects, like NEOM Media Village, aim to boost the Kingdom’s national production capabilities.

The Saudi creative economy is now intricately linked to the success of its video and film production; it is perfectly possible that the next wave of mega-production studios and brands could come from the Saudi market itself thanks to a renewed focus on encouraging entertainment providers to produce and export varied video content formats in the Kingdom.

August Media is one of the key industry participants at the forefront of shaping Saudi Arabia’s media trends. After launching the popular lifestyle and news network Lovin Saudi, the digital media holding company established an impactful presence in the region with the help of AstroLabs and went on to officially set up in Saudi Arabia to launch the business news network SMASHI TV in 2019.

Gaming-Induced Growth Boosts Economic Multiplier Effect

An increased demand for leisure activities has accelerated the expansion of the gaming industry in Saudi Arabia, a critical component of the media and entertainment (M&E) sector.

As of late, the gaming industry has witnessed rapid growth in Saudi Arabia. The emerging sector is projected to be valued at $1.3 billion by 2027, according to data aggregator Statista, cementing its place among the Kingdom’s highest-grossing industries.

Broadly speaking, the transformation happening in its gaming industry is far from being a passing fad but a strategic growth that directly impacts economic output and job creation, benefiting both individuals and the entire nation.

Recognizing the interplay between gaming and sustainable economic growth, the Kingdom launched a $38 billion national video games and eSports strategy, unveiled in September 2022 by Saudi Crown Prince Mohammed bin Salman.

The strategy aims to have globally sought-after games being developed entirely in Saudi. It comes perfectly in line with the broader vision for the sector to create 39,000 jobs by 2030 and generate up to $13.3 billion for the country’s GDP.

Programs like AstroLabs' "Game Changers" capitalize on this market need, incentivizing both domestic game development and foreign investment in this sector and supporting its evolution, aligning the Kingdom’s ambitions to become a global gaming powerhouse. Such initiatives demonstrate the gaming infrastructure's robustness, which renders the Kingdom’s ability to host the E-Sport World Cup as well as the Esports Olympics, slated to debut in Riyadh this year.

Adtech Emerges as a Growth Engine in the Saudi Media Industry

With an active internet user base of 36.84 million, plus the quickly growing e-commerce industry, which is likely to reach SR260 ($16 billion) by the year 2025, the digital advertising sector in Saudi has rapid expansion and resilience, with digital spend accounting for over $1.5 billion.

Ample growth opportunities are opening the door for global players to provide innovative marketing campaigns that resonate with Saudi consumers. Among these is Teads, a prominent player in the global adtech space that targets both the buying and supply side of things.

The company’s foray into the Saudi market, facilitated by AstroLabs’ on-the-ground team, is part of a global mission to help advertisers (buyers) reach 1.9 billion unique monthly users and ensure they achieve better outcomes and deliver the ROI on their media spending. Using Teads, publishers (sellers) can effectively expand the reach of their digital content.

The Saudi growth volume has caused a need for global expertise and business consulting capabilities of Assembly Global.

The global firm, part of AstroLabs’ expansion network, has largely viewed Saudi Arabia as a fast-growing market for its services.

Thus far, the firm’s trajectory has been fueled by strategic partners with big names, such as NEOM’s LINE and Riyadh’s New Murabba, in addition to major Saudi entities such as Ceer, the first Saudi electric vehicle (EV) brand, and the Saudi Company for Artificial Intelligence (SCAI).

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