Saudi Gazette report

RIYADH — Saudi Arabia’s media sector is undergoing a remarkable transformation, emerging as a key driver of the Kingdom’s Vision 2030 ambitions and offering a rapidly expanding platform for investment and innovation.

Backed by robust policy support, infrastructure development, and a young, tech-savvy population, the sector is projected to nearly double its economic contribution within the next five years.

The General Authority for Media Regulation (Gmedia) projects that by 2030, Saudi Arabia’s media sector will contribute approximately $12 billion (SR47 billion) to the national GDP — up from around $6 billion in 2023.

This figure represents a projected 0.8% share of GDP, compared to 0.4% currently.

In 2024 alone, the sector contributed SR16 billion (roughly $4.3 billion), accounting for 0.57% of the Kingdom’s GDP.

Employment within the sector is also on the rise. As of the end of 2024, media-related jobs reached 67,000, marking a 22% increase from the previous year.

Authorities have set a target of creating 160,000 media sector jobs by 2030.

This push is supported by training initiatives across three national media academies and academic partnerships with top global institutions.

The Kingdom’s unique demographics bolster this trajectory. As of 2022, 43% of the Saudi population is under the age of 39, and the country boasts the highest population growth rate among G20 nations.

Saudi Arabia surpassed the $1 trillion mark in nominal GDP and has seen a 4.7% annual expansion in its non-oil sector, of which media plays a growing role.

Gmedia’s 2024 sector report identifies six key transformative shifts: demand, infrastructure, funding, talent, technology, and regulation.

Each of these pillars reflects the Kingdom’s intent to modernize and globalize its media landscape.

The IGNITE program alone commits $1.1 billion to support content creation and digital infrastructure, including $234 million allocated specifically to the Film Sector Financing Program.

On the infrastructure front, over 35 film studios are operational across Saudi Arabia.

NEOM’s Media Village and Bajdah Studios offer over 12,000 sqm of production space, while Film AlUla features advanced soundstages and has issued more than 350 filming permits.

AlUla and NEOM have hosted over 235 productions since their launch, including international commercials and major feature films.

Cinema, once banned for decades, is now among the fastest-growing segments. The video sector is expected to reach $4 billion (SR15 billion) by 2027, driven by a 19% compound annual growth rate in cinema revenues and a 10% growth in video streaming.

This is complemented by a vibrant content ecosystem: domestic studios like Telfaz11 and partnerships with global platforms such as Netflix and MBC are producing Saudi-made content that is gaining international acclaim.

Digital innovation is another hallmark of the transformation. Saudi Arabia has achieved 78% nationwide 5G coverage and an average internet speed of 322 Mbps — 59% faster than the global average.

The domestic data center market is expected to surpass $2 billion by 2028, growing at a 12% CAGR, while artificial intelligence is projected to contribute $135 billion to GDP by 2030.

In audio, Saudi Arabia leads the Arab world in podcast consumption, with over 5 million regular listeners and 67% of adults tuning in weekly.

The audio segment, including music streaming and production, is valued at approximately $300 million and is forecast to grow at 4% annually through 2027.

The publishing sector is adapting to digital disruption. Although revenues from print newspapers and magazines are expected to decline slightly, the overall market is on track to reach $584 million by 2027, growing at 3% annually.

Initiatives like the Digital Publishing Program and Books for All are designed to increase readership and modernize the literary ecosystem.

Gaming and esports represent the most dynamic frontier. The gaming sector is growing at a rapid 23% annual rate and is expected to be worth more than $1.1 billion by 2027.

Backed by strategic investments, including a $40 billion fund under the Public Investment Fund for artificial intelligence projects, Saudi Arabia is positioning itself as a global leader in gaming and interactive entertainment.

Financially, the sector is benefiting from a wide array of incentives, including cash rebates of up to 40% for production projects in NEOM and AlUla, and long-term tax exemptions for companies relocating to the Kingdom under the Regional Headquarters Program.

The Cultural Development Fund has already launched a $234 million film financing program, while private equity and venture capital are encouraged to support early and mid-stage media startups.

The regulatory environment is also evolving. Gmedia is implementing a revamped media law designed to increase transparency, streamline licensing, and ensure market competitiveness. This includes the development of special media economic zones and liberalized regulations for international media firms.

The National Intellectual Property Strategy further safeguards content creators and strengthens the value chain.

These reforms are not merely local in impact. By enhancing media education, content production, and technological infrastructure, Saudi Arabia is positioning itself as the regional epicenter for digital storytelling, journalism, entertainment, and gaming.