Saudi Arabia has initiated a $100 million film fund to attract global film studios, enhancing its burgeoning local film industry. A notable recent achievement is “Norah,” which was featured at the Cannes Film Festival.
The fund, known as the Saudi Film Fund, involves a 40% investment from Saudi’s Cultural Development Fund, in partnership with MEFIC Capital and Roaa Media Ventures, serving as a technical partner.
This announcement coincides with the Saudi Film Commission’s second Saudi Film Confex in Riyadh, gathering around 130 industry experts from various sectors including production and exhibition.
RMA Ventures chairman Redha Alhaidar, in an interview, highlighted the progress since the 2018 lift of the cinema ban, noting significant improvements in local project quality and growing talent.
The fund focuses on two investment areas: media infrastructure and production. Media infrastructure includes distribution and logistical services, while production targets both local and international projects with commercial potential.
Infrastructure investments may involve Saudi companies offering logistical services, post-production, or equipment, and could extend to joint ventures with international entities to bolster the local ecosystem.
On the production side, the primary criterion is commercial viability, covering films, series, documentaries, and animation. While local and regional projects are prioritized, international opportunities with strong commercial appeal are also considered.
Investments are not restricted to Saudi-based productions; strategic or commercially appealing projects shot elsewhere may also be funded.
Investment size is carefully managed within the $100 million fund, typically between 10 to 20% per project, ensuring prudent allocation based on risk and potential return.
The target return on investment is approximately 20%, a standard benchmark. Since the fund’s launch, there has been significant interest from Hollywood, with several promising projects under evaluation.