300 million riyals.. A program to invest in the film sector in Saudi Arabia

The Saudi Cultural Fund launched an investment program in the film sector with a budget of 300 million riyals, as part of an initiative to finance the sector, with an estimated value of 879 million riyals.

The Fund unveiled its new investment program on the stage of the Cannes Film Festival, which is currently being held in France from 16 to 27 May.

The fund is participating in the festival as the main financial enabler for the cultural sector in Saudi Arabia.

The Fund invited local and international investors who are interested in the film sector to cooperate with it in investing in the sector and developing its resources.

375 million riyals

The CEO of the Cultural Fund, Mohammed Bin Dayel, announced an agreement in principle with the two companies, “Mevic” and Vision Media Ventures, to establish the first investment fund in the film sector within this program, at a value of 375 million riyals, and with a contribution from the Cultural Fund at 40% of the value of the investment fund. in the film sector in the Kingdom.

Development cultural system

30% of the initiative's budget has been allocated to establishing companies and facilities that support the film sector, while the remaining 70% will be directed to developing, producing and distributing film content.

This ensures that innovators are supported at all stages of the sector's value chain. According to all of this, the Fund confirms its importance as an active and pioneering player within the developmental cultural system.

  Lending program

It is noteworthy that the Cultural Fund launched last March the lending program within the Film Sector Financing Initiative - which was designed to provide financing packages for financial support to small and medium-sized companies supporting the sector, film production and distribution projects, and infrastructure projects. This is part of his efforts to support investment, enhance the profitability of the sector, and enable creators to make contributions that enrich the quality of life.

In late 2017, Saudi Arabia removed a decades-old ban on establishing cinemas in the country. And it looks forward to the annual box office revenues exceeding one billion dollars, increasing the volume of domestic production to 70 films each year, and bringing the number of theaters to 350 including 2,500 cinema screens, by 2030, with the industry expected to contribute about $ 24 billion to the economy, and adding more than 30 thousand permanent job.

Last year, 11 Saudi films were shown in cinemas, compared to only 7 films in 2021, and those in charge of the industry view the production of local content as a major key to the growth of the box office, after relying exclusively on foreign films to attract audiences. Egyptian films also account for 30% of the Saudi box office, which makes them a focus of interest for cinematic content production companies in the Kingdom.