LOGIC Consulting: MENA creative and cultural sectors evolving from funded to flourishing
The cultural and creative sectors in the MENA region have in recent years been evolving from heavily subsidized areas into thriving economic systems. That is according to a new report from LOGIC Consulting, which found that creative services exports are worth over $1.4 trillion worldwide.
From media and design to traditional crafts and digital content – this wide range of industries is no longer viewed solely as an instrument for preserving heritage or national identity. Instead, the creative and cultural sectors are increasingly being seen as dynamic economic systems that generate employment, trade, and investment opportunities across multiple business sectors.
Currently, the creative economy accounts for 3.1% of global gross domestic product and 6.2% of total employment, with an especially strong impact on youth jobs. Experts suggest that every dollar invested in the sector generates approximately $2.50 in broader economic activity, and the entire sector could represent 10% of global GDP by 2030.
“The transition underway is not simply from public to private funding, but toward hybrid, ecosystem-based finance, where governments act as market makers and private capital plays a stronger role in scaling the sector,” says Nadine Mousa, director at LOGIC Consulting.
Government roles and financial models
Public funding for culture, which relies heavily on annual state budgets and administrative procedures, often struggles to match the entrepreneurial speed and market responsiveness required by modern businesses. The transition currently underway is moving toward hybrid, ecosystem-based finance where governments act as market makers rather than simple patrons. This approach lowers transaction costs and establishes clearer intellectual property frameworks, allowing private capital to scale creative enterprises more effectively.
A prominent international example of this trend is the Creative Europe program. By earmarking $140 million for a guarantee facility, the state successfully altered the risk profile for commercial lenders, unlocking around $700 million in loans for small and medium enterprises. This demonstrates how public funds can be strategically leveraged to encourage private sector participation.
Rather than subsidizing organizations directly, this strategy focuses on minimizing barriers to entry and lowering transaction costs for private backers. Ultimately, this framework ensures that public money is deployed to build self-sustaining creative ecosystems that can repeatedly capture long-term commercial value.
The Arab Fund for Arts and Culture (AFAC) is an example that shows the importance (but also the limitations) of non-state cultural finance in the Arab region.
The Fund was founded in 2007 by Arab cultural activists as an independent foundation supporting artists, writers, and researchers. It runs nine grant programs, a training program, and offers close to 200 grants annually, and supports work across areas such as performing arts, visual arts, documentary film, music, creative and critical writing, and regional events.
Regional approaches in the Middle East
In the MENA region, Saudi Arabia and Egypt illustrate this financial evolution from two distinct angles. Saudi Arabia is building a state-led cultural market tied directly to its economic diversification goals.
According to LOGIC Consulting’s analysis, the cultural sector in Saudi Arabia contributed nearly $16 billion to the national economy in 2023, rising from under $8 billion before 2018. Employment within the sector has jumped an incredible 318% since the founding of its Ministry of Culture in 2018.
To maintain this momentum, the Saudi Cultural Development Fund has introduced specialized financing options alongside large-scale investments, including a $100 million film fund, an $80 million fashion investment fund, and a $227 million fund spanning visual arts and emerging technologies like AI.
Egypt, for its part, has deep cultural assets but faces untapped financial potential. Tourism remains a primary vehicle for cultural monetization, with the country receiving nearly 19 million tourists in 2025. The Grand Egyptian Museum is projected to attract approximately five million visitors annually, demonstrating the massive scale of heritage-linked assets.
However, public expenditure on culture remains modest at approximately 0.22% of the state budget. While independent institutions like the Arab Fund for Arts and Culture offer vital support, they depend heavily on international philanthropic groups, as only 2.5% of their fundraising came from local donors in 2024. The forward-looking opportunity for Egypt lies in formalizing its creative fields and establishing robust financial intermediaries to connect local talent with sustainable commercial investment.
“The future of cultural finance lies in moving beyond the traditional divide between public support and private investment toward more integrated, hybrid models,” Mousa notes.
“As the sector’s economic role expands, financing approaches must evolve to support not only cultural production, but also scalability, monetization, and long-term value creation. Ultimately, the shift is not about funding culture differently, but about positioning it as an investable sector. This will depend on the ability of governments, investors, and creative enterprises to collectively strengthen the frameworks, tools, and capabilities that enable cultural value to translate into sustainable economic.”
