How Saudi entertainment revolution is taking shape
RECREATION SECTOR COULD BECOME A MAJOR INCOME SOURCE IN THE ECONOMY
Kingdom is opening up options that two years ago would have been unthinkable
Saudi Arabia, which hosted a series of path-breaking concerts last month, is preparing to host a regional forum on cinema in April. The message is clear: The kingdom is opening up entertainment options for its citizens that even two years ago would have been unthinkable. Not just that, these projects could help develop entertainment as an economic factor in its own right. And in the short term, it will help reduce the country’s unemployment level.
The sector “has a very low barrier of entry, and (most) job opportunities in entertainment don’t require sophisticated qualifications,” said Saudi economist Hussain Shobakshi. “The entertainment sector has the ability to hire big numbers and swiftly. Fresh graduates can be hired, students can apply as part-timers.”
Unemployment among Saudis reached 12.8 per cent in the third quarter of 2018, according to media reports. The Saudi deputy minister of labour, in charge of labour policies, Ahmad Kattan, was quoted as saying the kingdom plans to create 1.2 million jobs by 2022 by focusing on the retail sector and reduce unemployment to 9 per cent. With the entertainment sector opening up, “you create an internal organic industry,” said Shobakshi. “There are three buzz words in Saudi Arabia: upbringing, education and culture.”
In the past, the three words were looked at “as if they were separated islands. Nowadays, education nourishes culture and culture feeds upbringing. Today, we are watching others’ productions. The next step is you make an industry to show yourself to others.”
During the eight-week Tantora Festival, a hologrambased concert was hosted for the Egyptian legend Umm Kalthoum, while the tenor Andrea Bocelli held his firstever concert in the kingdom. Lebanese singer Majida Al Roumi also held a concert during the Tantora event, while US singer Mariah Carey took the stage in Jeddah.
Saudi Arabia’s decision to open up entertainment and culture is part of its Vision 2030 aspirations. It has drawn up multibillion dollar projects not only to entertain Saudis at home, but also create job opportunities. The target is to raise women’s participation in the workforce to 30 per cent from 22 per cent.
Leila Masinaei, Managing Partner of Great Minds for Event Management and PR, said the entertainment sector is “fairly developed” in the kingdom. “The kingdom’s cinema sector will soon be one of the leaders in the region and globally, both in terms of box office revenues and innovation. “The cinema sector is growing at a steady pace and opportunities available are enormous as it requires exhibitors, architectural firms, consultants, suppliers, contractors to build over 300 cinemas by 2030. These opportunities are up for grabs as the ease of doing business in Saudi Arabia has improved drastically.”
UAE involvement
Majid Al Futtaim group is among the top investors in the Saudi entertainment sector. It has more than Dh13.71 billion invested in “current and announced projects across retail, leisure and fashion, creating more than 114,000 direct and indirect job opportunities,” said Cameron Mitchell, CEO of Majid Al Futtaim Leisure, Entertainment & Cinemas.
A subsidiary, VOX Cinemas, is investing a further Dh1.96 billion to open 600 screens by 2023, of which 110 will start screening by the end of the year.
“Majid Al Futtaim expects Saudi operations to form 50 per cent of its overall business, and anticipates that Saudi Arabia will be leading the region’s box office over the next five years.”
Other projects by the group include a 10,000 square metre family entertainment centre under the Magic Planet branding in Riyadh, and the Kingdom’s first indoor snow destination — Ski Saudi — located in Mall of Saudi, also in Riyadh.
So far, Saudi efforts to build a strong entertainment sector are in the right direction and welcomed by Saudi society, said Isam Arshad, an analyst at Dubai-based Euromonitor. “They are taking small steps,” Arshad said, referencing the efforts made in allowing women to drive and lift the ban in cinemas city by city. “Conservative forces are weaker because the majority of the current population — up to 65 per cent — is below 35,” said Arshad.
The cinema sector is growing at a steady pace and opportunities available are enormous.” Leila Masinaei | Managing Partner of Great Minds for Event Management and PR
Conservative forces are weaker because the majority of the current population — up to 65 per cent — are below 35.” Isam Arshad | Analyst at Euromonitor