Key Takeaways
- Saudi Arabia’s entertainment sector is projected to reach USD 5.36 billion by 2031, driven by Vision 2030.
- Family centers, theme parks, cinemas, and digital entertainment are leading the growth in the entertainment sector.
- The Joy Awards are driving the digital economy and entertainment industry, distributing over USD 60 million in prizes in 2025.
- The entertainment sector aims to increase its contribution to GDP to 4.2% and create 450,000+ jobs by 2030.
- The sector is expected to continue expanding, attracting both domestic and international tourists, with a focus on digital technologies, esports, and premium experiences.
Introduction to Saudi Arabia’s Entertainment Sector
Saudi Arabia’s entertainment sector is undergoing a significant transformation, driven by the government’s Vision 2030 initiative. The sector is expected to reach USD 5.36 billion by 2031, with a compound annual growth rate (CAGR) of 12.4%. This growth is driven by increasing investments in public and private sectors, with a focus on family entertainment centers, theme parks, cinemas, and digital entertainment. The sector is also driven by cultural and religious tourism in Mecca and Medina, which is expanding steadily.
Growth Drivers and Leading Segments
The growth of the entertainment sector in Saudi Arabia is driven by several factors, including government infrastructure spending, increased female participation, and family visits. The leading segments in the entertainment sector include theme parks and family entertainment centers, which account for 36% of the market. The cinema segment is also growing, with box office revenue reaching SAR 845.6 million in 2024. Digital entertainment and mixed reality are the fastest-growing segments, with a CAGR of 18.5% through 2031.
The Joy Awards and Digital Economy
The Joy Awards have become a significant driver of the digital economy and entertainment industry in Saudi Arabia. The awards distributed over USD 60 million in prizes in 2025, boosting overall revenues in the entertainment sector and attracting international participants. The awards have also led to increased spending on accommodation, food, and leisure experiences, supporting both domestic and international tourism. The digital economy is expected to continue growing, with a focus on esports, which reached 1 million active players in 2024.
Entertainment Activities by Region
The entertainment sector in Saudi Arabia is concentrated in several regions, including Riyadh, Mecca, and Medina. Riyadh dominates the market, with family entertainment centers operating at 68% occupancy. Mecca and Medina benefit from the Hajj and Umrah seasons, with growing visitor numbers and incorporating educational and heritage experiences. The Eastern Province is focused on waterparks, growing at 6.8% CAGR. Emerging cities like Asir, Qassim, and NEOM are exploring indoor and cultural entertainment centers, while respecting social norms.
Market Projections and Revenue Sources
The entertainment sector in Saudi Arabia is projected to grow from USD 2.65 billion in 2025 to USD 2.98 billion in 2026, reaching USD 5.36 billion by 2031. The sector’s revenue sources include ticket sales, premium experiences, and food, beverages, and retail. Ticket sales account for approximately 50% of total revenue, while premium experiences are expected to grow at 20.1% CAGR to 2031.
Visitors and Demographics
The entertainment sector in Saudi Arabia is driven by several demographics, including families, youth, and teens. Families are the core segment, accounting for 46.8% of visitors. Youth and teens are growing at 13.3% CAGR, with an increasing interest in digital entertainment and esports. The sector is also driven by international tourists, with the Joy Awards attracting global participants and boosting tourism revenue.
Key Players and Growth Drivers
The entertainment sector in Saudi Arabia is driven by several key players, including government entities and private operators. The government entities include Saudi Entertainment Ventures (SEVEN) and Qiddiya Investment Company, while private operators include Abdul Mohsen Al Hokair Group, Al Othaim Leisure & Tourism, and Muvi Cinemas. The growth drivers of the sector include government infrastructure spending, Saudi Summer campaigns, and increased female participation and family visits.
Challenges and Future Outlook
The entertainment sector in Saudi Arabia faces several challenges, including seasonality during Hajj and Umrah, fragmented municipal licensing, and a shortage of specialized engineering talent. Despite these challenges, the sector is expected to continue growing, with a focus on digital technologies, esports, and premium experiences. By 2030, the sector aims to increase its contribution to GDP to 4.2% and create 450,000+ jobs. The sector is expected to continue expanding, attracting both domestic and international tourists, and driving the growth of the Saudi economy.
