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Saudi Arabia launches game-changing film fund
Saudi Arabia has taken a monumental step to bolster its burgeoning local film industry with the introduction of a $100 million film fund. This significant move aims to attract investments from leading global film studios, catapulting Saudi’s cinematic landscape onto the international stage.
A collaborative effort
The fund, aptly named the Saudi Film Fund, represents a collaborative venture. The Saudi Cultural Development Fund plays a central role, contributing 40% of the capital. Partnering with them are investment bank MEFIC Capital and specialized holding company Roaa Media Ventures, which provides essential technical support.
Timing with a purpose
This announcement aligns with the launch of the second edition of the Saudi Film Confex confab in Riyadh, scheduled from October 9-12. The event will see around 130 local, regional, and international industry executives discussing production, exhibition, and studio construction, underscoring the country’s commitment to becoming a cinematic powerhouse.
Rising from the past
Since lifting its long-standing cinema ban in 2018, Saudi Arabia has rapidly set the wheels in motion to establish itself as a key player in the global film industry. Redha Alhaidar, a key industry figure and former president of the General Commission of Audiovisual Media (GCAM), is optimistic. He observes, “The quality of local projects today is much better. We see a lot of new talent inspired by the open and enabling ecosystem.”
Strategic investment in infrastructure
Understanding the investment goals
The fund is primarily geared towards two main areas: media-related infrastructure and production. Media infrastructure covers a broad spectrum, from distribution and logistical services to equity investments in companies that support the production process. This initiative is particularly meaningful for the Saudi ecosystem, fostering businesses that offer post-production services, provide essential equipment, or establish joint ventures with international companies to strengthen the local supply chain.
Emphasizing production, Alhaidar elaborates, “We’re focusing on films, series, documentaries, and animations. Our primary criterion is commercial viability. While we prioritize local and regional projects, we remain open to international ventures with strong commercial potential.”
Detailed investment approach
Film fund mechanics
- Investment scope: The priority is on projects with clear commercial returns. Although the primary focus is on projects shot in Saudi, strategic and commercially appealing international projects are also on the radar.
- Financial prudence: Given the $100 million budget, the fund adopts a cautious approach. Typically, investments will constitute 10-20% of a project’s budget, ensuring a balanced distribution of resources.
- Return expectations: The target return on investment stands at a solid 20%.
Hollywood’s warm reception
Since the fund’s launch, there has already been notable interest from Hollywood-based production companies. Saudi officials are currently evaluating and considering several intriguing proposals, underlining the global film community’s enthusiasm for this pioneering initiative.
A blueprint for industry growth
The Saudi Film Fund is more than an investment mechanism; it’s a strategic blueprint designed to foster comprehensive growth within the kingdom’s film industry. By strategically investing in both infrastructure and production, Saudi Arabia aims to create a sustainable and vibrant cinematic ecosystem that can compete on the global stage.
Open ecosystem benefits
A key advantage of this fund is its open ecosystem. By supporting both local and international projects, the fund ensures a dynamic flow of ideas, talent, and economic opportunities. This inclusive approach not only cultivates local talent but also attracts international expertise, thereby enriching the overall industry landscape.
Empowering local talent
The lifting of the cinema ban has already begun to reveal Saudi Arabia’s untapped potential. A surge of local talent sees the industry as a viable and prestigious career path. This, coupled with strategic investments, sets the stage for unprecedented growth and development in the Saudi film industry.
Looking ahead
With the Saudi Film Confex just around the corner, the spotlight is firmly on Riyadh. Industry experts and stakeholders will have the opportunity to explore potential collaborations and witness the transformative power of this funding initiative firsthand.
This fund signifies a pivotal moment for Saudi Arabia, heralding a new era in its cinematic journey. As the kingdom eagerly awaits the influx of global investments and collaboration, the future of Saudi cinema looks promising and full of opportunities.
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