Saudi Arabia’s film industry rises to lead regional box offices
Saudi Arabia’s film industry has achieved remarkable growth since cinemas reopened in 2018, rapidly establishing itself as a dominant force in the Middle East. That is according to a report from Strategic Gears, which looks at the past success and future challenges of the industry.
The film sector is now moving past a period of initial rapid expansion (that the report calls the ‘renaissance’) and entering a phase of maturity and sustainability. This transformation is linked to the Kingdom’s Vision 2030 strategy, a comprehensive plan to diversify the economy, promote culture, and expand entertainment options for citizens and visitors.
Market momentum and local growth
Saudi Arabia had the highest box office revenues in the Middle East in 2024, which accounted for 42% of the region’s total sales.
Industry revenues from ticket sales alone have grown substantially every year since business resumed, rising from approximately $10.3 million in 2018 to $233.3 million in 2021, and then reaching around $248.9 million last year.
This year, revenues from ticket sales are expected to surpass $266.6 million. This steady expansion of movie-going activity signals market stabilization after the initial surge in demand following the return of cinemas.
Another interesting dynamic is that audience enthusiasm for homegrown Saudi content is also increasing. While international films continue to dominate ticket sales, the share of revenue generated by Saudi national films rose by 10 percentage points between 2019 and 2024.
This upward trend suggests a positive return on government investment in local talent development and film production, with 35 Saudi films released in 2024 alone. Though the Egyptian film industry has long been the leader in Arabic-language cinema, Saudi films have been getting much positive attention, including many that are available through streaming services.
Institutional framework in place
This growth trajectory in the industry would not have been possible without some targeted policy. There are three key institutions in KSA that have set in place the foundational structure for the industry’s long term growth.
The Ministry of Culture oversees cultural policy and promotes development across the sector. The Film Commission takes the lead on film production, talent development, and regulation. Finally, the Cultural Development Fund provides crucial financial support and investment for film projects, including a dedicated Film Sector Financing Program launched in 2022 with allocations estimated at $234.4 million.
Strategic needs for sustained success
Despite leading the region, the young Saudi film industry still lags behind more developed international markets and has steps to take to reach its potential and achieve market sustainability.
A key constraint is the need for greater local talent and expertise. Although the pool of professionals is expanding, there is still currently a lack of sufficient experience in critical roles like screenwriting, production, and direction.
What’s more, there is also a significant gap in commercial expertise across the wider film value chain. That includes skills in networking, marketing, and investor relations. This lack of expertise has compelled filmmakers to rely heavily on public subsidies, rather than private funding.
To achieve sustainability, the industry needs more collaboration between investors and filmmakers, strategic upskilling of talent, and better financial planning to maximize the commercial life of films. This shift from government-led to market-led growth is paramount for the sector’s future.
“As part of its mission to diversify the economy, Saudi Arabia is widening its cultural and entertainment offerings for citizens and tourists. This has led to a plethora of transformations across the Kingdom, one of which has been bringing cinemas back,” reads the Strategic Gears report.
“But despite the industry’s growth, it still lags more international markets. Granted, the industry is notably younger than its counterparts, meaning many of its stakeholders still need to get acclimated to the commercial acumen and gain experience in the industry to ensure sustainability, profitability, and grant-independence.”
