This study, conducted by Tahseen Consulting, was supported the Saudi Publishers Association’s recent successful bid to gain full membership in the International Publishers Association. Saudi Arabia is the fourth country in the Arab World to achieve full membership in this prestigious international organization which represents publishers’ interests globally. The report comes as Saudi publishers are preparing to attend the 34th Sharjah International Book Fair starting on November 4th.

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Kingdom of Saudi Arabia
Publishing Industry Analysis

2. |
While the publishing industry faces great challenges, there are significant
opportunities to revitalize the sector for socio-economic development (1/3)
1
Key Challenges
From Findings
Increasing gross value added
from the publishing, media,
and content industries
 Publishing, media, and content industries currently contribute ~ 3.6 billion to the economy.
 Evidence from regions like the EU suggest that cultural industries can contribute up to 2-3% of GDP.
 If similar gross value added thresholds are achieved in KSA, the publishing media, and content industries
could generate from $15-22 billion annually.
Potential
Opportunities
Increasing exports of
publishing, media, and
content goods from Saudi
publishers
 KSA currently exports $25 million worth of goods from the publishing, media, and content industries.
 As a comparison, Lebanon exported $86 million of books and related products in 2013. Such level of
exports may be possible by incentivizing Saudi publishers to broaden their genre focus to align more
closely with articulated consumer demands and make a strong push towards digital publishing and online
distribution.
Import substitution through
replacing foreign imports with
domestic production
 KSA currently imports $125 million worth of books and related goods.
 At the same time, there is a strong preference for Arabic content. By ramping up the translation industry to
acquire translation rights from countries such as Finland, UK, and US, KSA could promote the development
of its domestic translation industry while meeting preferences for Arabic language content.
Stimulating private
investment in the publishing,
media, and content industries
 The creative industries have strong export potential. Other global leaders in the creative industries have
instituted national programs specifically designed to upgrade industry infrastructure and increase export
competitiveness.
 Similarly, the KSA could consider implementing a matching grants program focused on publishers to
implement business improvement practices focused on export competitiveness. Relevant ministries and
stakeholders should also integrate the publishing industry more effectively into national and regional
economic planning.
Increasing employment
opportunities in the
publishing, media, and
content industries
 The majority of firms operating in the creative industries are small and medium enterprises (SMEs). SMEs
can be given assistance to scale their operations and increase export competitiveness so that they can
become engines for further employment generation. The publishing, media, and content sector have high
levels of Saudization which can be increased to further technical vocational education and training that
specifically focuses on developing key skills required in the creative industries.

3. |
While the publishing industry faces great challenges, there are significant
opportunities to revitalize the sector for socio-economic development(2/3)
2
Key Challenges
From Findings
Encouraging publishers to
embrace digital publishing
and online sales
 Due to low levels of trust in e-commerce, the market for digital content remains small.
 Consumers are looking towards the government to implement e-commerce regulations that improve trust in
online transactions. At the same time, the KSA’s SME publishers currently lack the institutional capabilities
to introduce e-commerce and embrace digital publishing. A targeted assistance program for SMEs could
enhance capabilities in digital publishing and e-commerce.
 A big risk is further consolidation in the distribution system that could affect industry competition.
Potential
Opportunities
Improving data collection and
analysis which would be
helpful to the growth of the
publishing industry
 No reliable source of publisher output and sales data is available. There is an urgent need to develop
partnerships with major book fairs and retailers to collect retail sales information from point of sale systems
to provide reliable sales information for booksellers, publishers, and other stakeholders. For example, only
sparse data is available on the emerging e-book market despite the potentially strong role online sales of
Arabic e-books could play in increasing exports of Saudi publishers.
 Evidence also points to a large mismatch between what genres publishers believe are in most demand and
what consumers actually demand. This supply-demand gap can be eliminated with better market
information.
Making major book fairs
more appealing to children
 One study shows that 65% of adults surveyed visited the Riyadh book fair. However, attendance rates were
much lower for children (26%). This points to a need to introduce more family friendly activities that can
attract children.
Developing more targeted
reading promotion programs
 One very often repeated assertion is that readership in the Arab World is low. However, limited studies
suggest that this conclusion is not the case in KSA. Children and adults read more than an hour a day on
average according to a recent study carried out by the King Abdul Aziz Center for World Culture.
 Isolating infrequent readers from avid readers will enable more targeted reading promotion interventions.
Increasing early positive
reading habits
 Limited studies suggest that children’s literature is particularly weak. Increased emphasis could be placed
on the development of the domestic children’s publishing market to decrease currently high levels of
imports of children’s books. At the same time, the development of a national awareness campaign to
educate parents about the importance of reading to their children and encouraging early positive reading
habits could be beneficial. Specifically, there is a need to involve more fathers in reading to their children.

4. |
While the publishing industry faces great challenges, there are significant
opportunities to revitalize the sector for socio-economic development (3/3)
3
Key Challenges
From Findings
Develop a strategy to
transform libraries
 The government has heavily invested in libraries. However, libraries face a number of challenges from
issues with proximity to communities and low quality facilities and services.
 Relevant ministries and stakeholders could conduct a national library facility needs and use assessment to
develop an updated strategy for improving public, school, and academic libraries.
Potential
Opportunities
Simplify the licensing and
regulatory regime for
publishers
 As in other Arab countries, governance of the publishing sector involves several government entities.
 A one-stop shop for publishers to register new businesses, attain and renew circulation licenses, apply for a
copyright, and obtain ISBNs could be considered to simplify requirements of operating a publishing
business.
Develop specific policies for
the development of the
publishing industry
 While a number of institutions, awards, and festivals seek to build literary culture in KSA, there are no
specific polices for the development of the publishing industry.
 There is an urgent need for a nation-wide publishing agenda that prioritizes needs and challenges,
identifies strategies for advancing the industry, assigns responsibilities, defines performance metrics, and
establishes an implementation timeline.
Address issues of freedom of
press and movement
 Several international organizations have highlighted the KSA’s policies surrounding the publishing industry
as constraints to free speech and freedom of the press. However, many of the laws which are focused on
are analogous to laws in other countries.
 The SPA can continue to engage with government officials from the Ministry of Culture and Information to
clarify its position on freedom of speech and provide policy advice to the Ministry on the matter.
Copyright protection and
enforcement
 While the KSA’s copyright and intellectual property regime is in line with international standards, protection
and enforcement are lacking.
 The International Intellectual Property Alliance has recommended several measures for improvement that
involve increasing the number of inspectors at the Ministry of Culture and Information devoted to
enforcement, establishing a cybercrimes division, and ensuring internet service providers more effectively
combat mobile and digital piracy.

5. |
Sales forecasts suggest the publishing, media, and content industries will grow
slightly to $3.6 billion by 2017
4
Forward-looking forecasts anticipate the publishing, media, and content industries growing
to $3.6 billion by 2017
Sources: Candean Reports Duty Free Retailers in Saudi Arabia: Market Snapshot to 2017
and Online Retailers in Saudi Arabia: Market Snapshot to 2017
Note: This data is not as detailed as actual gross value added statistics from the 2010
Comprehensive Economic Census data shown on slide 1 since it is focused on specialist
book retailers. Several important publishing sub sectors are not captured by this data
including broadcasting activities, information service activities, and creative arts,
entertainment, and cultural, activities.
Source: Central Department of Statistics and Information Exports by Sections and Chapters
for the years 2012 – 2014
Note: To show the extent of the export sectors included in the publishing, media, and
content industries, export classifications of arts and toys and games are included. A more
conservative estimate might exclude these export classifications. Further official
disaggregated statistics which would enable a more precise market sizing are not available.
Domestic Retail Sales (in US$ '000s)
$123,000
$2,600,000
$230,000
$3,300,000
Online sales of Books, News and
Stationery Specialist Retailers
Retail sales of Music, Video, Book,
Stationery and Entertainment
Software Specialists Retailers
2012 Actual Sales 2017 Forecasted Sales
2017 Total: $3,530,000,0002012 Total: $2,723,000,000 2017 Total: $61,060,3082012 Total: $70,124,822
Exports
$34,928,984
$7,732,357
$27,463,481
$13,066,022
$20,797,368
$27,196,918
Works of Art, Collectors
Pieces, and Antiques
Toys, games, and sports
requisites
Printed Books,
Newspapers, Pictures,
and related goods
2012 Value of Exports 2014 Value of Exports

6. |
32,902 people are employed in the publishing, media, and content industries,
This is only .3% of the total Saudi labor force
5
Large companies in the recorded media, publishing, and arts and entertainment subsectors employ a
significant number of individuals in the broader publishing, media, and content sector
Source: 2010 Central Department of Statistics and Information Comprehensive Economic Census
Note: Based on the latest available statistics, there are 11,739,303 people in the Saudi labor force including both expatriates and Saudis
13,585
8,864
918 1,038
1,914
5,742
841
9,088
6,629
396 419
943
5,149
448
3,045
1,569
280 201 577 299 213
1,452
666
242 418 394 294 180
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Printing and
reproduction of
recorded media
Publishing activities Motion picture, video
and TV program
production, sound
recording
Programming and
broadcasting
activities
Information service
activities
Creative, arts and
entertainment
activities
Libraries, archives,
museums and other
cultural activities
Total # Employees 20+ Emp. (5-19) Emp. Less than 5 emp
Total: 32,902 Total: 23,072 Total: 6,184 Total: 3,646

7. |
Saudization rates in the publishing, media, and content industries exceed
Nitiqat thresholds; There is strong potential for further Saudization
6
Source: Saudi and Non-Saudi Employees by Class Size and Economic Activity, Central Department of Statistics and Information
Note: The Green Nitiqat threshold for publishing, printing, and media businesses with 10-49 employees is 10%, for businesses with 50-499 employees 20%, and for businesses with 500+
employees 35%; The Saudi labor force is 5,577,489 people
19%
35%
28%
18%
42%
33%
31%
23%
38%
39%
23%
36%
40%
35%
20%
51%
44%
41%
31%
1%
32%
20%
48%
38%
28%
35%
5%
33%
Printing and
reproduction of
recorded media
Publishing activities Motion picture, video
and TV program
production, sound
recording and music
publishing activities
Programming and
broadcasting
activities
Information service
activities
Creative, arts and
entertainment
activities
Libraries, archives,
museums and other
cultural activities
Less 5 emp (5-19) emp 20+ emp Total
Saudization rates at all firm sizes exceed Nitiqat green thresholds; Approximately .2% of the Saudi
labor force are employed in the publishing, media, and content industries

8. |
There has been a dramatic consolidation of the publishing and retail industries
with the emergence of large, integrated publishers and distributors
7
1990-19951995-2015
Market
Structure
Characteristics
 Prominent role played by small publishing houses
 Publishers specialized in books and rarely offered other products
 Customers were readers who only came to physical stores to purchase books
Market
Structure
Characteristics
Small
fragmented
publishers &
distribution
system
Emergence of
diversified,
integrated big
companies
1
2
Market
Structure
Characteristics
Further
consolidation
and embrace
of digital
publishing
and online
sales
3
Future
 Emergence of integrated companies specialized in production (publishing)
and sales (retail)
 Shift in publishing from small businesses to large, diversified corporates
 A shift from small bookshops to major super-stores with national coverage
 Bookshops expand product offerings to technology and office supplies
 Customers no longer exclusively focused on purchasing books
 Emergence of online retail channels that cater to emerging preferences for e-
books and digital content
 Consolidation of smaller publishers into media conglomerates, that unite
book publishing with the communications, entertainment, and film industries
 Further growth of large, integrated companies with publishing and
distribution capabilities
 Increased trust in e-commerce will drive stronger online sales
 Increased mobile device penetration will drive e-book sales
 Decline in variety of titles due to consolidation of distribution channels
Sources: Exhibitors Guide for Sharjah International Book Fair 2013 and 2014, Staff analysis

9. |
17.8% 23.6%
31.1% 30.3%
29.5% 26.4%14.5% 13.3%4.6% 4.0%2.5% 2.5%
12 & Under Over 12
None 1 per year 2 - 3 books 4 to 10 books 11 - 25 books More than 25 books
Reading culture is evolving; Many Saudis read several books per year and
spend an average of 100-300 Riyals on reading materials monthly
8
The majority of Saudis read 1- 3 books per year
Source: King Abdulaziz Center for World Culture Study on Reading Habits in Saudi Arabia
Number of books read per year
22.4% 20.5%
34.0%
33.7%
28.1%
28.0%
10.9% 11.7%
2.6% 3.5%
2.0% 2.7%
12 & Under Over 12
17.8%
23.6%
31.1%
30.3%
29.5%
26.4%
14.5% 13.3%
4.6% 4.0%
2.5% 2.5%
12 & Under Over 12
Print Electronic
Saudis generally spend less than 100 Riyal per month on
reading materials for themselves and their children
Average monthly spending on reading materials
16.6%
26.9%
51.7%
37.0%
26.1%
24.8%
5.6%
8.0%
0.0% 3.3%
Reading Materials for 12 & Under Reading Materials for Over 12
Nothing < 100 SR 100 SR - 300 SR 300 SR - 500 SR > 500 SR

10. |
KSA began publishing an annual National Bibliography in 1997; The most
recent edition provides a snapshot of publishing genre coverage (1/2)
9
Source: King Fahd National Library, Saudi National Bibliography 2014
Note: Includes all materials published in the Kingdom of Saudi Arabia as well as publications by Saudi citizens or institutions published abroad. Publications published outside KSA with financial
assistance by Saudi citizens or institutions are also included. Only materials that acquired by King Fahd National Library through purchase, gifts, or exchange or received under Legal Deposit
Act, are included. Materials published in all forms, as defined by the Legal Deposit Act, including printed, and non-book materials, i.e, audio-visual materials, periodicals (first issues only),
reports, textbooks, maps, theses, electronic media, etc. are covered.
There were 2,387 books and
other publications published
in 2014
Arabic publications primarily cover the subjects of religion and social sciences
2312
75
Arabic Non Arabic
Total
2,387
35
56
60
78
116
129
196
268
649
725
Arts and recreation
General works, computer science, and…
Language
Philosophy and psychology
History & geography
Science
Technology
Literature
Religion
Social sciences
Dewey Decimal Class Number of Arabic Publications

11. |
KSA began publishing an annual National Bibliography in 1997; The most
recent edition provides a snapshot of publishing genre coverage (2/2)
10
Source: King Fahd National Library, Saudi National Bibliography 2014
Note: Includes all materials published in the Kingdom of Saudi Arabia as well as publications by Saudi citizens or institutions published abroad. Publications published outside KSA with financial
assistance by Saudi citizens or institutions are also included. Only materials that acquired by King Fahd National Library through purchase, gifts, or exchange or received under Legal Deposit
Act, are included. Materials published in all forms, as defined by the Legal Deposit Act, including printed, and non-book materials, i.e, audio-visual materials, periodicals (first issues only),
reports, textbooks, maps, theses, electronic media, etc. are covered.
Non Arabic publications generally cover social sciences, language, science, and technology
0
0
1
2
4
7
12
14
17
18
Arts and recreation
Literature
Philosophy and psychology
History & geography
General works, computer science, and information
Religion
Technology
Social sciences
Language
Science
Dewey Decimal Class Number of Non Arabic Publications

12. |
The governance structure of the publishing industry involves several ministries
with various policymaking, regulatory, and operational authorities
11
Source: Staff analysis of entity mandates and legal framework for publishing
Entity Policymaking Authority Regulatory Authority Operational Authority
Ministry of
Culture and
Information
 Issues implementing regulations which
elaborate on and provide more specific
requirements for implementing the
Copyright Law 1424
 Issues implementing regulations for
several laws that affect the press such
as the 2000 Press and Publications Act
and 2003 Law of Printing and
Publication
 Regulatory oversight of all media
outlets
 Issuing operating licenses for all
aspects of media, print, and publishing
activities
 Issuing licenses for online content
providers
 Oversight and inspection of media
outlets
 Oversight and investigation of
violations by reporters / journalists
 Issuance of press credentials
 Copyright protection of literary and art works
 Receiving complaints from authors and other owners of
copyright laws
 Investigation of copyright violations and violations by
journalists
 Raising awareness of copyright issues
 Operates a number of cultural institutions that promote
publishing and readership such as
– King Fahd Cultural Centre
– Administration of Folklore
– Saudi Arabian Society for Culture and Arts
– Literary Clubs
– The General Administration for Public Libraries
Ministry of
Commerce and
Industry
 Issues implementing regulations which
elaborate on and provide more specific
requirements for implementing the Law
of Trade Names 2010, the
 Law of Patents, Layout Designs of
Integrated Circuits, Plant Varieties, and
Industrial Designs, and the Law of
Trade Marks 2002.
 General Directorate for Intellectual
Property oversees and coordinates
relevant authorities that enforce
intellectual property rights through the
Standing Committee on Intellectual
Property Rights
 Implementation of international
copyright laws
 Registers copyrighted works
 Cooperates with World Intellectual Property Organizations
and other international organizations
Ministry of
Education
 No direct policymaking authority over
publishing industry
 No direct regulatory authority over
publishing industry
 Influences textbook content through national curricula and
standards
 Centralized procurement of textbooks
 Coordinates participation in international book fairs
Ministry of
Interior
 No direct policymaking authority over
publishing industry
 No direct policymaking authority over
publishing industry
 Analyzes publications identifies issues of concern to
Ministry of Culture and Information
King Fahd
National Library
 No direct policymaking authority over
publishing industry
 No direct policymaking authority over
publishing industry
 Issues ISBN Numbers
 Depository library for all Saudi publications
 Publishes National Bibliography

13. |
While legal frameworks for copyright protection are in place, protection and
enforcement have proven challenging (1/2)
12
According to dated statistics, piracy costs $140 million in trade losses per year; losses are amongst the highest in the
GCC …
Sources: International Intellectual Property Alliance 2014 Special 301 Report on Copyright Protection and Enforcement, International Intellectual Property Alliance 2007 Special 301 Report on
Copyright Protection and Enforcement
SAUDI ARABIA
Estimated Trade Losses Due to Copyright Piracy (in millions of U.S. dollars)
Industry
2006 2005 2004 2003 2002
Loss Level Loss Level Loss Level Loss Level Loss Level
Records & Music 20.0 50% 20.0 50% 15.0 35% 16.0 40% 16.0 42%
Business Software 112.0 51% 105.0 52% 73.0 52% 76.0 54% 13.3 50%
Motion Pictures NA NA 95.0 95% 20.0 40% 20.0 40% 20.0 35%
Entertainment Software NA NA NA 95% NA 68% 64.0 83% NA NA
Books 8.0 NA 10.0 NA 14.0 NA 14.0 NA 14.0 NA
Totals 140.0 135.0 122.0 190.0 63.3
… over the last decade, book and other digital content piracy have remained prevalent
 Piracy has historically taken place on university campuses in the form of illegally produced textbooks and photocopied books
when the books ordered do not arrive on time
 Pirated textbooks have traditionally been imported from Lebanon, other Arab countries, and India
 High levels of unauthorized use of software in businesses
 Proliferation of online and mobile piracy services prevent e-commerce in copyright materials

14. |
While legal frameworks for copyright protection are in place, protection and
enforcement have proven challenging (2/2)
13
International Intellectual Property Alliance Recommended Actions For Copyright Enforcement and Legislation
Sources: International Intellectual Property Alliance 2014 Special 301 Report on Copyright Protection and Enforcement, International Intellectual Property Alliance 2007 Special 301 Report on
Copyright Protection and Enforcement
Enforcement
 Implement Ministry of Culture and Information plan to add 300 employees, including 150 inspectors, and put in place an
appropriate reward and recognition program.
 Legalize software usage within KSA Government ministries and grant authority to MOCI to audit and enforce
legalization.
 Establish a special cybercrime unit within the Police and an Internet piracy unit at MOCI; work closely with the Communication
and Information Technology Commission (CITC) to take more actions against Internet piracy.
 Ensure that cases involving major seizures or repeat offenders are systematically adjudicated, resulting in deterrent sentencing.
 Ensure penalties structure is adequate to deter piracy.
Legislation
 Amend Copyright Act to fully implement (and join) the WIPO Copyright Treaty (WCT) and WIPO Performances and
Phonograms Treaty (WPPT)
 Ensure that Internet Service Providers cooperate with right holders against online and mobile piracy.

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Questions?
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you a brief overview. You are encouraged to
ask questions. Please contact
Wes Schwalje,
Chief Operating Officer
wes.schwalje@tahseen.ae
Tahseen Consulting’s Public Sector
Practice
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