Saudi Arabia launches $234m funding program to boost Kingdom’s growing film sector

Saudi Arabia launches $234m funding program to boost Kingdom’s growing film sector
The packages will be broadly focused on small and medium enterprises in the sector. (Shutterstock)
Short Url
Updated 19 March 2023

Saudi Arabia launches $234m funding program to boost Kingdom’s growing film sector

Saudi Arabia launches $234m funding program to boost Kingdom’s growing film sector

RIYADH: Saudi Arabia’s Cultural Development Fund has launched a $234 million Film Sector Financing Program to prop up the budding film sector in the Kingdom. 

As the name suggests, it is aimed at supporting the Saudi film industry by offering financial packages to local and foreign firms to empower the private sector and boost local content. 

The packages will be broadly focused on small and medium enterprises in the sector. 

“We are excited to announce that we have partnered with strategic financial institutions across the country to provide companies working in the film sector with the financial solutions to shore up the film sector, establish financial sustainability for film projects, and enable healthy market dynamics,” said the fund’s chief executive, Mohammed Bindayel.  

The financing packages will be divided into two types of funding: lending and investment.  

Bindayel launched the lending cycle by signing two agreements with the CDF’s financial partners Lendo and Sukuk Capital to provide financing packages to companies working in the Saudi film sector.  

The investment cycle will be launched later this year and will support SMEs and large companies in the sector.  

“We invite all financial and investment institutions to join this mission to build and empower this emerging sector,” Bindayel added  

The announcement took place at the “Ignite The Scene” event held in Riyadh between March 16 and 18, which was organized by the Ministry of Communications and Information Technology.  

The event served as a platform to celebrate films and creators locally and globally as well as connect storytellers and professionals within the industry.  

The CDF was founded in 2021 with the aim of enhancing the cultural landscape of Saudi Arabia.  

Organizationally linked to the National Development Fund, it was established as part of the Quality of Life Program’s initiatives to promote and empower the development of a self-reliant cultural sector.   

The fund actively supports a variety of cultural activities, facilitates investment and seeks to improve the domestic culture sector’s profitability, aligning with Saudi Vision 2030. 

The NDF boosted the Kingdom’s economy by approving financing and support worth over SR135 billion ($36 billion) in 2022, according to its recently published quarterly report.  

To enrich Arabic content, the CDF signed a partnership agreement with King Abdulaziz Center for World Culture to cooperate in developing cultural projects, spreading knowledge, and encouraging national talents locally and globally. 


SRMG launches new venture capital arm, SRMG Ventures

SRMG launches new venture capital arm, SRMG Ventures
Updated 28 March 2023

SRMG launches new venture capital arm, SRMG Ventures

SRMG launches new venture capital arm, SRMG Ventures
  • SRMG’s new venture capital arm focuses on supporting content creation and digital media platforms
  • Inaugural investments in disruptive regional production house Telfaz11 and immersive video platform VUZ

RIYADH: SRMG, a global integrated media group, today announced the launch of its corporate venture capital arm, SRMG Ventures.

In line with SRMG’s transformative growth strategy, SRMG Ventures will invest in early-stage companies and technologies within the core target areas: media creators, digital media, media enablers and tools, including generative AI, as well as immersive and interactive entertainment. SRMG Ventures will initially target investments from the seed to Series B stage.

SRMG Ventures will enable SRMG to back and empower regional talent and entrepreneurs, acting as a catalyst for further growth of the rapidly evolving media industry in the region.

SRMG Ventures will provide SRMG with direct access to innovative technologies, as well as new media talent and content creators, that will continue to enhance SRMG’s own media portfolio and drive forward the future of media. The new corporate venture capital arm will additionally help SRMG penetrate new markets and further diversify its business offering, whilst generating tangible financial returns.

SRMG Ventures has also announced inaugural investments and partnerships with two fast-growing companies:

  • Telfaz11: a Saudi-based creative media studio specializing in locally relevant entertainment content, and producer of the box office hit “Sattar” and feature film “Alkhallat+” which was one of the top ten most watched movies in Saudi Arabia on Netflix.
  • VUZ: a leading VR-enabled social media app that allows users to engage with 360o videos enabling a new level of immersive realism.

Jomana R. Al Rashid, CEO, SRMG said: “We are excited to continue to lead and support the growth of the dynamic and fast-growing media and content industry in Saudi Arabia and beyond. Our new venture capital arm, SRMG Ventures, will enable us to discover and nurture new talent and content creators, and leverage the latest advances in virtual reality and artificial intelligence.

“The adoption of cutting-edge technologies will invigorate SRMG’s products and services, further elevating content offerings and experiences for our local and global audiences. Our first investments in two leading companies, one local and one regional, led by exceptional creatives from the Arab world, mark the beginning of this thrilling endeavor.”

The announcement comes at an important moment for the MENA media and venture capital sectors. The MENA media and entertainment sector is expected to grow at 9 percent to exceed $20 billion by 2026, outpacing global growth.

In addition, the MENA region, and Saudi Arabia in particular, is experiencing a vibrant entrepreneurial ecosystem, with venture capital funding crossing the $3bn mark in 2022, an annual rise of 8.3 percent, with Saudi Arabia startups securing $987m in 2022, a 72 percent increase compared to 2021.


Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 
Updated 28 March 2023

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

RIYADH: Egypt’s external financing needs are standing in the way of its economic development and may hinder its medium-term growth, according to a report by Morgan Stanley.

The investment management and financial services firm recommended the North African country implement structural reforms through a large-scale privatization program in order to boost its economy.

The US-based company also noted the shift to a permanently flexible exchange rate system would also help reduce the Egyptian economy’s sensitivity to global shocks.  

“Egypt has favorable prospects for medium-term growth, but the large external financing needs weigh on the macroeconomic outlook,” said the report.  

 Even though the continuous depreciation of the Egyptian pound since 2022 will aid in shrinking the current account deficit, there is limited recovery in its official reserves. 

The report attributed this to the uncertainty around the rate of reform and the tightening of financial conditions in the global economy, which will likely limit foreign direct investment flows. 

Egypt’s economic struggles, exacerbated by the fallout from Russia’s invasion of Ukraine, were brought into focus in December when the International Monetary Fund approved a $3 billion Extended Fund Facility loan.

The Morgan Stanley report said this support from the IMF is “insufficient to close the financing gap and provide the country's foreign exchange needs in the near term”.

Egypt has the potential to sell up to $7 billion worth of assets by 2024 as it seeks to boost foreign exchange liquidity and public finances, as well as narrow its financing gap. 

The country’s financial gap is currently pegged at $23 billion to $24 billion by the end of fiscal year 2023/2024, reported Morgan Stanley  

“This in turn should tame further expectations of FX depreciation and ensure a smooth transition to a durably flexible regime, potentially lowering the bar for portfolio investors and buying time for the authorities to implement the structural reforms to level the playing field and boost FDI inflows further,” added the report.


The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG
Updated 28 March 2023

The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG

RIYADH: Following a 31 percent rise in net profits and a 10.6 percent increase in assets in 2022, the UAE’s banking sector is projected to remain stable, according to a KPMG report.

The global accounting firm said the sector’s net sentiment improved by 7 percent from the previous year, based on 96,321 tweets regarding seven UAE banks tracked.

The UAE banking sector recorded an industry average of -7.4 percent, a seven-percentage point increase from the 2022 study’s industry aggregate of -14.4 percent last year, the report added.

“The UAE’s vibrant economy and its favorable business environment has attracted a significant amount of foreign investment, with banks benefiting from large pools of capital and high-net-worth customers the UAE is attracting,” Abbas Basrai, partner and head of financial services at KPMG Lower Gulf, said.

The country’s banking sector, which has benefited greatly from the government’s commitment to regulatory reforms, saw the total assets of the top 10 banks increase by 10.6 percent year-on-year to $898.89 billion in 2022, driven by strong growth in deposits, loans, and advances.

The UAE’s economy is expected to grow by 7.6 percent in 2022, the highest rate in 11 years, after expanding by 3.9 percent in 2021, according to the Central Bank of the UAE. In 2023, the country’s gross domestic product is forecast to increase 3.9 percent 2023, according to the regulator.

According to KPMG's report, the vibrant banking sector remained well-positioned to maintain a stable outlook in 2023 “with the growing demand for digital financial services, rapid adoption of fintech solutions enhancing customer experience, and industry competitiveness.”


Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1
Updated 28 March 2023

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

RIYADH: The Saudi Stock Exchange updated the free-float shares for all listed issuers on the main market TASI and parallel market Nomu, effective April 2. 

The companies that will be included in the Tadawul index are Alinma Hospitality REIT Fund and Thimar Development Holding Co.

The firms that will be included in the Nomu index are Leen Alkhair Trading Co., Nofoth Food Products Co., Alqemam for Computer Systems Co., WAJA Co., Balady Poultry Co., KnowledgeNet Co., Bena Steel Industries Co., and Horizon Food Co. 

The Tadawul All Share Index rose for the fourth day in a row on Tuesday, as it went up 4.47 points or 0.04 percent to 10,468.08.

Parallel market Nomu also went up by 286.61 points or 1.49 percent to close at 19,534.39, while the MSCI Tadawul 30 Index went down by 0.24 percent to 1,416.92.

The total trading turnover of the benchmark index was SR5.73 billion ($1.53 billion).

Takween Advanced Industries Co. was the top performer of the day, as its share prices went up by 9.98 percent to SR9.48. 

Other top performers were National Metal Manufacturing and Casting Co. and Middle East Specialized Cables Co. whose shares went up by 9.98 percent and 9.94 percent respectively. 

Middle East Specialized Cables Co. was the worst performer, as its share prices dropped by 2.95 percent to SR59.30.

On the announcements front, Thimar Development Holding Co., in a bourse statement revealed that it trimmed its net losses in 2022 to SR4.7 million, from SR162.45 million in 2021. As the company successfully trimmed its losses, its share prices went up rose by 2.67 percent to SR44.25. 

Another company which announced its financial results on Tuesday was Electrical Industries Co. The firm reported a net profit of SR94.17 million in 2022, a 93 percent surge from SR48.84 million compared to the year-earlier period. The company’s share prices soared by 3.16 percent to SR34.3. 

Naba Alsaha Medical Services Co.’s net profit surged to SR26.92 million in 2022, up 4.24 percent, from SR25.82 million in 2021. Driven by the rise in profit, the company’s share prices increased by 2.36 percent to SR52.

Meanwhile, Saudi Advanced Industries Co., known as SAIC, also announced its earnings report for 2022. The company’s net profit went up by 9.96 percent to SR100.21 million in 2022, compared to SR91.13 million in 2021. 

As the profit surged, SAIC’s board recommended distributing a cash dividend of 5 percent of capital or SR 0.50 per share for 2022. The share prices of SAIC also went up by 1.32 percent to SR24.50.


UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  
Updated 28 March 2023

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

RIYADH: The UAE’s gross domestic product is expected to grow at 4.3 percent in 2024, driven by oil and non-oil exports, according to the latest forecast by the country’s central bank.   

In its 4th Quarterly Economic Review released on Monday, the Central Bank of the UAE has retained its forecast unchanged at 3.9 percent for this year.  

This comes as the apex bank noted that the country’s economy had a good run in the first three quarters of 2022, with the fourth quarter set to maintain a solid footing, helping the UAE GDP to close the year at an estimated 7.6 percent.  

While oil production is likely to slow by the OPEC+ agreements, the non-oil sector is expected to continue to support aggregate output, even if at a slower pace, the bank’s report revealed.   

The real estate and construction sectors, as well as a vibrant manufacturing sector, such as refineries and aluminum production, are the key drivers of strong performance, noted the report.   

Furthermore, the FIFA World Cup in Qatar and other global events held in the region increased travel and tourism to the UAE – something that provided a much-needed boost to the economy. 

In the fourth quarter of 2022, oil production averaged 3.1 million barrels per day, with UAE hydrocarbon GDP estimated to have grown by 10 percent year-on-year in line with the OPEC+ agreements.  

OPEC agreed to cut production by 2 million barrels per day at the beginning of November, causing the CBUAE’s projections for hydrocarbon real GDP growth to be revised downward. As a result, the CBUAE expects oil GDP to rise by 3.0 percent and 3.5 percent in 2023 and 2024, respectively.   

Following the robust growth in the first three quarters of 2022, the non-oil sector is expected to rise at a similar rate in the fourth quarter. The CBUAE expects the UAE’s non-oil GDP to grow at 6.6 percent in 2022.   

The UAE’s Consumer Price Index increased by 4.6 percent in the fourth quarter of 2022, compared to 6.5 percent in the previous quarter. While inflation is rising in line with global trends, the apex bank noted that it is still much lower than the global average.   

During 2022, CPI inflation averaged 4.8 percent, which was close to CBUAE’s projection of 4.9 percent.   

“In 2023, inflation is projected to decelerate to 3.2 percent, on the back of softer price increases in all categories, especially transport and food, and beverages,” according to the report’s statement.