Saudi Entertainment Industry: Propelling Business Expansion and Spurring Economic Progress
The Saudi entertainment sector has grown over the years to become a vital economic engine, attracting global business expansion..
With a market size set to be worth $1.17 billion by 2030, the Saudi entertainment and leisure (E&L) industry creates a wealth of opportunities for investors and the local workforce and drives business expansion to the Kingdom.
As well as being a catalyst for economic growth and job creation, the E&L sector acts as the driving force behind the progress of the Saudi tourism sector, playing a pivotal role in increasing the latter’s contribution to over 10% of the GDP by 2030 in line with Vision 2030.
Key Highlights
- The cinema sector in Saudi Arabia had accumulated close to $1 billion in revenues by March 2024.
- The Saudi entertainment sector is forecast to be worth $1.17 billion by 2030 and grow by a whopping 47.6% per year.
- Since the establishment of the General Entertainment Authority (GEA) in 2016, the number of companies operating in the entertainment sector has grown to over 4,000 by 2024.
- The esports sector is predicted to be valued at $1.3 billion by 2027.
Rapid Progress of the E&L Unlocks Saudi Tourism Opportunities
The E&L sector has been witnessing a major facelift, particularly following the 35-year-long ban on cinemas in 2018.
Since then, the cinema market alone, which was projected to generate $950 million in box office revenue by 2030, has seen over 61 million tickets sold.
This means that just six years after opening the first cinema, the sector surpassed its 2030 goal by generating $986 million by March 2024 and being on the verge of becoming a $1 billion box office market.
Moreover, Saudi Entertainment Ventures (SEVEN) is investing over $13 billion to develop 21 entertainment destinations across 14 cities to increase the number of movie theaters in the country, among other offerings.
Saudi Arabia’s hospitality sector has benefited from a strong lineup of events, such as Riyadh Season, which is an annual state-funded entertainment and sports festival that gains popularity each year. Starting in October and ending in March, the season holds some of the biggest events in the entertainment industry, thus contributing significantly to Saudi Arabia’s tourism goals.
The inaugural season in 2019 attracted over 10 million visitors. By the second edition in 2021, the festival had grown to include 14 activity zones and welcomed 15 million visitors from 125 countries over five months. As this year's season comes to a close, reports reveal that the festival surpassed the 12 million visitors mark midway.
The upsurge witnessed in the tourism sector during the Riyadh Season benefits businesses by increasing hotel occupancy rates and attracting consumers to restaurants and retail, making the construction space one of the beneficiaries of the E&L growth.
Projects like Qiddiya, an entertainment-led giga project located near Riyadh, are at the forefront of developing a strong domestic E&L sector, cementing the country’s position as the capital of entertainment and leisure worldwide.
Sports and E-sports Enhance Saudi Tourism Sector’s Global Competitiveness
The Kingdom is on track to become a leading market for sports and e-sports events, solidifying the country’s global appeal as a global tourist destination. The e-sports market, in particular, is poised for an upcycle, with estimates that the market will be worth $1.3 billion by 2027.
One of the initiatives supporting e-sports in the Kingdom is AstroLabs’ "Game Changers" program, which focuses on enhancing efforts to launch new gaming studios in line with the Kingdom’s mission to nurture the growth of domestically produced games. Additionally, the AstroLabs Network connects global and local gaming companies as a way to encourage collaboration and innovation.
Thanks to these initiatives, international companies within the entertainment sector are gaining confidence to enter this lucrative market, which helps Saudi Arabia become a leading e-sports hub.
This is further evidenced by the country’s recent success in hosting the e-sports World Cup, followed by the first-ever Olympic Esports Games, set to debut in 2025.
As the country gears up to host a series of world events such as the 2029 Asian Winter Games and FIFA World Cup 2034, the Saudi tourism industry is set to witness a significant metamorphosis, attracting millions of tourists and sports enthusiasts and unlocking new opportunities for growth and development across the Kingdom.
A Growing Business Expansion Activity Mirrors the Sector’s Growth
The rapid expansion of the entertainment sector in Saudi Arabia is also supported by the increase in business expansion, which strengthens the country’s plans to support the growth of its tourism industry.
Since the establishment of the General Entertainment Authority (GEA) in 2016, the number of companies operating in the entertainment sector has grown dramatically, from fewer than 10 to over 4,000 by 2024.
In addition, MISA, in collaboration with GEA, has signed an agreement with Nawaar Entertainment to open a series of new entertainment and aquatic parks, with the first park in Riyadh scheduled to launch in 2025.
International businesses are increasingly drawn to the Saudi E&L sector as they seek growth opportunities, including access to a thriving economy, a business-friendly environment, and a strategic gateway to global markets. As the Saudi E&L's competitiveness strengthens, Saudi Arabia’s economy will continue its upward trajectory.
