The rise of the GCC's film industry

If someone told you that Saudi Arabia now hosts one of the world’s largest film festivals, would you believe them?

Welcome to the Red Sea International Film Festival. First held in Jeddah in 2021, it has quickly become the biggest film festival in the Middle East and North Africa. Last year, the festival broke records with nearly 6,000 international film professionals and critics in attendance, and over 40,000 screening tickets were sold to the public. The red carpet welcomed Hollywood stars like Will Smith and Johnny Depp, alongside top talent from Arabic cinema and Bollywood.

This dynamic scene is not limited to Saudi Arabia. Across the GCC, cinema—including tickets, concessions, and events—is expected to reach a staggering USD 1 billion by the end of 2024 and exceed USD 1.26 billion by 2029.

What’s driving this boom, and what does it mean for the future of our region? Let’s dive in.

The UAE’s Booming Film Industry

The UAE’s film industry has grown significantly in recent years. During the first eight months of 2024, the country’s cinema sector generated AED 517 million (USD 141 million) in revenue, attracting approximately 11 million cinema visits. Across the UAE, there are 702 screens in 72 locations. According to His Excellency Mohammed Saeed Al Shehhi, Secretary General of the UAE Media Council, the UAE now holds 30% of the Middle East’s cinema market share—an impressive figure given that the country makes up only 3.3% of the region’s population.

A key driver behind this growth is the increasing affluence and strong spending power of the UAE’s residents. This is reflected in movie ticket prices, with the UAE ranking among the top 10 countries for the highest average ticket prices(USD 11.27), surpassing the US, UK, and Canada. Premium moviegoing packages can cost as much as 180 dirhams (USD 49) per ticket. As the UAE’s economy expands, this willingness to spend on high-quality entertainment, including movies, is only expected to increase.

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Government support for the film industry has also been crucial in its growth. Since 2012, the Abu Dhabi Film Commission (ADFC) has been offering a 30% rebate on production costs—the first such incentive in the Middle East. The ADFC also provides technical support, including free location scouting and assistance with shooting permits, visas, and customs clearance for productions filmed in Abu Dhabi. This has attracted significant global franchises like Star Wars, Mission: Impossible, and Fast & Furious to shoot scenes in the UAE alongside a wide range of Indian and Arabic-language films.

Other initiatives, such as Abu Dhabi’s Department of Culture and Tourism’s twofour54 Studios—a 40-hectare production facility launched last year— and Dubai Studio City, which was established in 2005 and now hosts over 270 companies specializing in film and TV production, further strengthen the UAE’s position as a leading hub for cinema and filmmaking in the region. These developments will continue cementing the country’s status as a prime destination for moviegoers and filmmakers alike.

Saudi Arabia: An Emerging Powerhouse in Global Film

Saudi Arabia’s film industry has experienced rapid growth since the launch of Vision 2030, which aims to position film and entertainment as key drivers of economic diversification and enrich its residents’ cultural life.

Since 2018, the Saudi film industry has generated an impressive USD 986 million in revenue. Last year, the country’s box office saw a particularly strong performance, with a 20% year-on-year increase and a release of 443 films, attracting over 17.4 million moviegoers. This placed Saudi Arabia 15th globally in box office sales, with ticket revenues exceeding USD 240 million. By the end of 2023, seven licensed cinema operators managed 69 cinemas, 628 screens, and 65,000 seats across the Kingdom.

This growth is set to continue. According to PwC, Saudi Arabia’s domestic box office could reach USD 950 million by 2030, with the wider cinema industry, including revenue from concessions, advertising, and F&B sales, projected to generate as much as USD 1.5 billion.

Government policy has played a crucial role in supporting the industry’s rise. Since 2022, the Saudi Film Commission(SFC) has partnered with the Cannes Film Festival on an incentive program to make the Kingdom a global film production hub. This initiative includes offering up to 40% rebate for productions that hire local film crews.

Direct funding has also been vital. In 2021, the government launched the Red Sea Fund to support Arab and African filmmakers, which has provided funding for over 250 films as of 2024. The Cultural Development Fund is preparing to launch the Saudi Film Fund, a USD 100 million initiative to promote local film projects and nurture homegrown talent.

In addition to financial support, Saudi Arabia is positioning itself as a hub for global filmmaking talent. The Red Sea International Film Festival, the Gulf Film Festival (held every April in Riyadh), and the Saudi Film Festival (held every May in Dhahran) all attract filmmakers and industry professionals from around the world, further cementing the Kingdom’s status as a major player in the global film industry.

Looking Ahead

Two key trends will likely shape the future of the GCC’s film industry. First, we can expect even greater international collaboration across all aspects of film production. The partnership between the UAE and Hollywood started to gain momentum over the past decade with Mission Impossible: Ghost Protocol in 2011, which showcased Dubai’s skyline, including Tom Cruise’s iconic stunt on the Burj Khalifa. Similarly, Furious 7 in 2015 featured well-known locations like Abu Dhabi’s Yas Marina Circuit and Emirates Palace.

Saudi Arabia is also attracting major international productions. Notable examples include Gerard Butler’s action-thriller Kandahar, filmed in AlUla; Anthony Mackie’s Desert Warrior, shot in NEOM; and scenes from the Russo Brother’s crime drama Cherry, filmed in AlUla and Riyadh. These productions benefitted from Saudi Arabia’s 40% rebate before it was officially announced. As the region’s film industry continues to capture global attention, these collaborations will likely become more common shortly.

Second, we are seeing a growing focus on producing Arabic-language films. Our research at Manara Global found that 55% of moviegoers in Saudi Arabia and the UAE are eager to see more locally produced content, rising to over 60% among those aged 35 to 44. Most (67%) of these viewers are young parents who want their children to engage more with Arabic content in their native language.

Encouragingly, there is increasing investment in this area. Abu Dhabi’s twofour54 launched the Sanad Fund, which supports talented Arab filmmakers in developing and post-producing narrative and documentary feature-length films. Similarly, Saudi Arabia’s General Entertainment Authority partnered with Egypt to establish the USD 130 million Big Time Film investment fund to finance 20 Arabic films across the region this year.

These developments point to a bright future for the GCC’s film industry, with international collaborations and local productions playing pivotal roles in its success.

Conclusion

It’s exciting to imagine where the GCC’s film industry will be in the coming years. While we’re witnessing a significant transformation, this is only the beginning.

The industry’s future will depend on how the UAE, Saudi Arabia, and other Gulf countries continue to attract investment, provide incentives, nurture local talent, and capitalize on the region’s appeal to international filmmakers and production teams. With sustained effort in these areas, the GCC is on track to become a global hub for cinema consumption and film production.