Government reforms aim to capture up to a quarter of the $20 billion that Saudis spend overseas on entertainment each year.
The Saudi government aims to increase the entertainment sector contribution to the gross domestic product (GDP) from 3 percent to 6 percent, while investment in entertainment is forecast to grow significantly in the next five years.
The government attaches great importance to the entertainment sector. Several government agencies organize activities but the government has now unified the efforts of all public agencies under the umbrella of the General Entertainment Authority (GEA), which was established by a royal decree in line with Vision 2030.
The entertainment sector is among the top job-generating and skill-supporting sectors. It has played a role in instilling the concept of volunteering, and in linking job seekers to businessmen.
Last year the GEA said that infrastructure investments over the next decade would reach SR240 billion ($64 billion), contributing SR18 billion to annual GDP and generating 224,000 new jobs by 2030.
As part of the Public Investment Fund (PIF) program, the fund recently announced the launch of the Development and Investment Entertainment Co. (DIEC), with an initial capitalization of SR10 billion, which will act as an operational body as well as an investor in the Kingdom’s entertainment sector. The company will also be responsible for building and operating theme parks and entertainment villages, with the first project to be inaugurated this year.
The GAE and DIEC have expressed their interest in building strong relationships and expanding networking with international companies and individuals with experience in planning, development and management in entertainment, cultural and tourism destinations. The Kingdom is particularly interested in city planning and development to integrate tourism and entertainment, and to provide training and capacity building for its human resources.
With government plans to expand the entertainment sector, there are massive opportunities over the next decade for international companies. These opportunities can be found in areas such as integrated solutions for theatrical productions, broadcasting, gaming, software and applications, development of theme parks, resorts, hotels and restaurants.
And since the government is seeking to increase the participation of its citizens in sports from 13 percent to 40 percent by 2030, investment opportunities in sports facilities and games solutions are expected to increase, creating more chances for private and foreign partnerships.
Consulting, operations, event planning and promotion, training and human resources development and transportation can also add value to public entertainment and provide prospects for international companies. This shifting landscape will continue to create exciting opportunities for established players and emerging professionals alike.
Basil M.K. Al-Ghalayini is the Chairman and CEO of BMG Financial Group.
