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Another step towards Saudiwood: Local investment firm Mefic Capital will launch the Kingdom’s first fund to invest in the film industry as the country looks to become one of the region’s leading film production markets, according to a joint statement yesterday. The fund’s size is estimated at SAR 375 mn (c. USD 100 mn).
What we know: The launch of the Saudi Film Fund comes in collaboration with Roaa Media Ventures — a holding company focused on promoting local media projects and talent. The government’s Cultural Development Fund (CFD) is a key investor in the film fund, contributing 40% of its total capital. The fund aims to invest in “film production infrastructure and provide content that reflects the Saudi culture and values,” according to the statement.
We knew this was in the works: The three parties signed a preliminary agreement for the USD 100 mn film fund last year at the Cannes Film Festival. They said the fund will work on luring global investors to the film industry and pave the way for local films to enter global markets. A separate USD 80 mn fund focused on “film and media production, distribution and infrastructure” was also announced last year.
All eyes on Cannes, always: The Saudi Film Commission announced in 2022 during its participation at the Cannes Film Festival an incentive program aimed at turning the Kingdom as a global hub for film production. Those include up to 40% rebate for productions that hire local crew in above the line and below positions among other incentives. The incentives were announced a few months after the Kingdom set up the Red Sea Fund to support Arab and African filmmakers and directors. It has provided funding for over 250 films since it was set up in 2021.
Some of Hollywood’s productions were shot here, including Gerard Butler’s action-thriller Kandahar which was filmed in AlUla, Anthony Mackie’s Desert Warrior in Neom, and a part of crime drama Cherry, which was shot in AlUla and Riyadh. All three productions benefitted from the rebate before it was officially announced.
AlUla wants to lure in the music industry next: Film AlUla — the Royal Commission of AlUla’s film agency — will open in June an advanced recording studio along its film studios. It will be home to audio and recording equipment, including a control room and two soundproof booths to be used by artists, choirs and others in the industry.
From ban to boom: Revenues from cinemas in the Kingdom grew 5% y-o-y in 2023 to SAR 919 mn (c. USD 245 mn). It lifted its nearly 40-year cinema ban in 2018 as part of social reforms by Crown Prince Mohammed bin Salman.
NEW DETAILS ON REGIONAL FILM FUND-
An investment fund announced last week by the General Entertainment Authority (GEA) to boost Arabic film content across the region will have an initial capital of EGP 4 bn (c. SAR 486 mn), Asharq Business reported (watch, runtime: 5:58). The Big Time Investment fund, in which GEA holds a 30% stake, will focus on film production and distribution. It will be followed by similar investment funds Big Time 2 and Big Time 3 for investments in American and Indian movies at later stages , according to the media outlet. The announcement was made by GEA Chairman Turki Al Sheikh during a visit to Egypt. The fund aims to make profits within five years, according to Asharq. It aims to produce 20 movies from across the region this year.
