n the aftermath of the global pandemic, the Kingdom of Saudi Arabia (KSA) is experiencing a remarkable transformation across various facets of society. Swift advancements in social, economic, and cultural realms underscore Saudi Arabia’s aspiration to become the hub of the region and the world. This transformative phase is driven by a growing acceptance of diverse entertainment formats such as movies, concerts, and various leisure and entertainment avenues. Key to this paradigm shift are government initiatives that are actively promoting a culture of leisure and entertainment in the country.

1. Saudi Arabia's Rise to
Global Entertainment
Dominance
A Vision Beyond 2030
© 2024 Redseer Strategy Consultants Confidential and Proprietary Information
Dubai. Bangalore. Delhi. Mumbai. Singapore. New York
February 2024

2. Introduction - Saudi Arabia
becomes top GCC tourist destination
Proactive governance has been the
engine behind this transformation
Aided aptly by
economic diversification
While undergoing an
unprecedented cultural transformation
Consumers are seeking
experiences over material belongings
And this is met with large
investments in L&E infrastructure
All these changes will continue
to drive tourists to the region
Conclusion - The building blocks
have been set for a vision beyond 2030
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Contents

3. © Redseer 03
Foreword
In the era that has been reshaped by 'BC' (Before Covid) and 'AD' (After Disruption), we find ourselves at
a pivotal moment in the Leisure and Entertainment sector. This paradigm shift has seen consumers
increasingly favor immersive experiences over traditional forms of engagement. Indeed, experiences
have become the new currency in a world increasingly driven by the desire for meaningful and
memorable engagements.
Saudi Arabia stands at the forefront of this transformative wave. Its journey to becoming a top GCC
tourist destination is not just a story of change but a narrative of reinvention and visionary ambition. The
Kingdom’s proactive governance, coupled with a bold stride towards economic diversification and
cultural renaissance, is crafting a new epicenter for global tourism.
As the CEO & MD of DEI (Digiphoto Entertainment Imaging), a company that operates at the
convergence of technology and entertainment, I have witnessed firsthand how these seismic shifts are
unfolding. Saudi Arabia’s approach is a compelling example of how innovation, rooted in rich cultural
heritage, can redefine a sector. The Leisure & Entertainment infrastructure investments in the Kingdom
are not just about building venues; they are about creating ecosystems that offer immersive, resonant
experiences to the new-age consumer. Our journey began in the GCC, laying the foundation for
becoming the global leaders in our segment. We are excited to bring our industry-leading best practices
to Saudi Arabia to accelerate this transformation.
This whitepaper delves into the myriad facets of this transformation. From the evolving consumer
behavior, where experiences overshadow material possessions, to the large-scale infrastructural
developments bolstering the L&E sector, each aspect is a cog in the wheel driving Saudi Arabia towards
a future beyond 2030. The Kingdom’s vision is a testament to the power of strategic planning and
execution, setting a blueprint for the future of global tourism.
I invite you to explore how the building blocks for a vision beyond 2030 have been laid, heralding an era
of unprecedented opportunities and experiences.
K.S Ramakrishnan
Managing Director and CEO, DEI Global

4. © Redseer 04
Introduction To Report
Gone are the days of a singular narrative surrounding Saudi Arabia. Today, the Kingdom embraces a
multifaceted transformation, with social, economic, and cultural advancements blossoming at rapid
speed. At the heart of this metamorphosis lies an aspiration: to become a regional and global hub, a
vibrant center where leisure and entertainment intertwine. This report delves into the heart of this
exciting change, highlighting key initiatives and achievements that illuminate Saudi Arabia’s path
towards a brighter future.
With a forward-thinking government spearheading numerous initiatives geared towards enhancing the
leisure and entertainment sectors, coupled with the rapidly evolving social and cultural dynamics within
the Kingdom of Saudi Arabia (KSA), the stage is set for substantial growth in this realm. Concurrently,
there is a noticeable shift in consumer preferences towards experiential offerings, reflecting an
increasing appetite for immersive leisure activities. The influx of tourists into KSA further highlights the
promising trajectory of this sector.
In this report, we shed light on the changing leisure and entertainment dynamics in Saudi Arabia. We
hope you find the report interesting and encourage you to share your feedback or engage in further
discussion
Sandeep Ganediwalla
Managing Partner, Redseer Strategy Consultants

5. © Redseer 05
In the aftermath of the global pandemic, the Kingdom of
Saudi Arabia (KSA) is experiencing a remarkable
transformation across various facets of society. Swift
advancements in social, economic, and cultural realms
underscore Saudi Arabia’s aspiration to become the hub of
the region and the world.
This transformative phase is driven by a growing
acceptance of diverse entertainment formats such as
movies, concerts, and various leisure and entertainment
avenues. Key to this paradigm shift are government
initiatives that are actively promoting a culture of leisure
and entertainment in the country.
Notably, Saudi Arabia has solidified its position as the
premier tourist destination in the Gulf Cooperation Council
(GCC) in 2023, with international tourist arrivals exceeding
30 million.
This surge in tourism reflects the success of Saudi Arabia’s
efforts in creating a vibrant leisure and entertainment
sector and elevates its standing on the global tourism map.
Introduction - Saudi Arabia becomes top GCC tourist destination
Source(s): Redseer Analysis
International Tourist Inflow
In Mn, 2018-2023
30
25
20
15
10
5
0
KSA
UAE
Egypt
2018 2019 2020 2021 2022 2023

6. Aided aptly by economic diversification
© Redseer 06
Vision 2030 Objectives
Descriptive
Growing infrastructure for diverse leisure &
entertainment venues and giga tourism projects
Promotion of KSA as a key economic hub
Cultural transformation fostering the promotion
of leisure and domestic tourism
Tourism Contribution to GDP
2019 2030
Proactive governance in line with Saudi Arabia`s vision
2030 that aims to increase the tourism revenue
contribution from current ~4% to 10% by 2030 has been
pivotal in achieving this shift.
Governance plays a pivotal role in the country’s ambitious
transformation into a prominent leisure and entertainment
destination. The allocation of a staggering $1 trillion
investment into tourism, as outlined in the National Tourism
Strategy, underscores the nation’s dedication to fostering
a thriving leisure industry. Substantial investments have
been directed towards developing major entertainment,
heritage, and cultural sites like Qiddiya near Riyadh, AlUla in
the northwest, and Al-Soudah in the Asir region, enhancing
their appeal to domestic and international visitors alike.
Through strategic governance and substantial
investments, Saudi Arabia is poised to redefine itself as a
vibrant hub for leisure and entertainment on the global
stage.
As Saudi Arabia strides toward a future characterized by
innovation and economic prominence, these initiatives
showcase a proactive visionary leadership.
Contribution of Oil to GDP Contribution of Oil to Exports
Saudi Arabia advanced in its diversification through a reduction of the
oil sector’s contribution across revenue & export
Proactive governance has been the engine behind this transformation
2005-2010 2017-2022
~40-50%
2005-2010 2017-2022
~12-15%
~4% 10%
Source(s): IMF/Redseer Analysis
Source(s): Redseer Analysis

7. Saudi Arabia’s economic diversification efforts have yielded
substantial progress, heralding a promising era of growth
and prosperity. The expansion of the private sector has
been particularly noteworthy, evidenced by the doubling of
small and medium-sized enterprises (SMEs) since 2016.
This burgeoning private sector has not only contributed to
job creation but has also played a pivotal role in reducing the
country’s reliance on oil revenues. Non-oil government
revenues have more than doubled since 2016, indicating the
success of diversification endeavours. Moreover, the
Kingdom’s proactive approach to economic reforms, with
over 70 initiatives targeting the private sector, underscores
its commitment to fostering an inclusive and robust
economy. A significant indicator of the ongoing
transformation is the remarkable increase in the labor force
participation rate of females, reaching 35% in 2023,
showcasing the government’s commitment to gender
equality and inclusivity.
Simultaneously, advancements in the education sector have
been remarkable, with King Abdulaziz University’s remarkable
ascent to rank 101 in the Time Higher Education rankings for
2023, leading the MENA region. Furthermore, Saudi Arabia’s
representation in global rankings has surged, with the number
of universities included in rankings rising to 21 from 15 in 2022.
These concerted efforts in economic diversification and
education signify Saudi Arabia’s steadfast march towards a
more diversified, knowledge-based economy and a brighter
future for its citizens. Saudi Arabia’s rapid economic
diversification is a phenomenon never witnessed in any other
part of the world.
© Redseer 07
While undergoing an unprecedented cultural transformation
KSA Cultural Evolution
Illustrative
Saudi Arabia is in the midst of a remarkable cultural
revolution, with entertainment and leisure activities taking
centre stage across the kingdom. Concerts, once a rarity,
are now a regular occurrence, featuring both local talents
and international stars, delighting audiences in Saudi cities.
The recent introduction of cinemas has transformed the
movie scene, offering Saudis access to a diverse selection
of films from around the globe. In sports, the kingdom is
making waves as a premier host for major international
events, including the upcoming 2034 FIFA World Cup, the
2027 AFC Asian Cup, the 2034 Asian Games, and the 2029
Asian Winter Games. Moreover, Saudi Arabia is rapidly
becoming a sought-after destination for top-tier football
competitions like the Spanish Supercup. Riyadh Season and
events in Jeddah have become iconic fixtures, treating locals
and visitors to a rich tapestry of entertainment options, from
electrifying live performances to delectable culinary
experiences. These cultural shifts underscore the kingdom’s
dedication to enriching the lives of its people and fostering a
vibrant cultural landscape for generations to come.
Source(s): Redseer Analysis
Social Revolution Era Leisure Revolution Era Economic Expansion Era
Ban on cinemas lifted
National cash transfer
program launched
Saudization launched
Curbed powers of vice
Taxing undeveloped
urban lands
Launched Riyadh season
Restaurants and cafes
were allowed play music
& host live performances
Launched quality of life
program
2016
2017
2018 2023
2019
Advanced entertainment
project investments in
Riyadh & Qiddiya
Significant investments in
entertainment projects reflect
govt commitment to diversify
economy and enhance cultural
experiences

8. Consumers are seeking experiences over material belongings
And this is met with large investments in L&E infrastructure
© Redseer 08
Consumers have a strong inclination onwards experiences…
Leisure and Recreation Expenditure¹
% of PFCE, 2023
Consumer Net Sentiment
% Respondents, Increase % - Decrease % | N = 500 (GCC)
Survey executed in August 2023
USA UK KSA
11%
10%
3%
Experiences
Product Ownership
Asset Ownership
Visiting public spaces
Performing sports
activities
Purchasing
electronics
Buying
automobiles
76%
76%
66%
Purchasing
fashion
72%
46%
Buying
RealEstate
37%
The spend on leisure and entertainment in Saudi Arabia
has strong upside potential and then country is already
seeing a growing spend on leisure & recreation. This is
expected to grow over the years and reach levels of other
comparable global benchmarks. A notable trend has
emerged among consumers, emphasizing the rising
demand for experiences over traditional shopping and
product-centric activities. In our recent survey, an
overwhelming portion of respondents expressed strong
sentiment towards increasing their spend towards
experiences which is significantly higher than product and
asset ownership.
> 3X rise in
footfall expected
>40
>120
2028
2023
KSA Footfall to L&E Attractions1,2
In Mn, 2023-2028
Footfall will upsurge as investments into
infrastructure start bearing fruit
25+ theme parks, 400+ entertainment centers
in pipeline aligned to Vision 2030
Visiting attractions 75%
Eating out/Ordering
food
66%
Source(s): Redseer Analysis
Notes: 1. Leisure &recreation includes recreational expenditure on concerts, theater performances, sporting events, theme parks,
live performances or other entertainment avenues.
Source(s): Redseer Analysis
Note: L&E Attractions include theme parks, tall towers, monuments, sports and cultural events. Footfall includes visits of tourists and residents.
2. Inclusive of mega-theme parks and large entertainment centers only

9. © Redseer 09
In this backdrop, there are large investments flowing into
the leisure and entertainment sector. Major players such
as Al Hokair Group and Saudi Entertainment Ventures
(Seven) are spearheading groundbreaking initiatives.
Through strategic partnerships with global icons like
Hasbro, Warner Bros Discovery, and Mattel, they are
reshaping the leisure and entertainment infrastructure of
the kingdom. Saudi Entertainment Ventures (Seven), a
subsidiary of the Public Investment Fund, made waves with
a monumental announcement, earmarking 50 billion Saudi
riyals for the development of 21 integrated entertainment
destinations across 14 cities. These ventures represent a
fusion of international excellence with local charm, as they
collaborate with renowned brands including Clip ‘n Climb
and toy giant Hasbro. 25 theme parks and 400
entertainment venues are currently in the pipeline for KSA.
The objective is clear: to elevate entertainment
experiences to unprecedented levels, promising a new era
of leisure and excitement for Saudis and visitors alike. We
expect the footfall to leisure and entertainment
attractions to grow 3x in the next 5 years crossing 120 Mn
visitors.
This will open lucrative opportunities in leisure and
entertainment sector. With numerous attractions already
in the works, park operators are poised to reap significant
rewards, particularly through ticket sales. Additionally, food
service establishments within these attractions are
primed to capture a substantial share of consumer
spending. Local fast-food chains like Kudu that have scaled
up rapidly in recent past, have a strong role to play.
Souvenir imaging is another niche segment that will pick
up, as entertainment and adventure tourism increases.
Industry leaders like DEI Global have already established a
strong foothold within attractions in the market. With an
estimated overall spend of $5 billion projected by 2028
within the leisure and entertainment attractions alone, the
future is brimming with promise.
5.0
3.5
Consumer Spend on L&E Attractions in KSA
$ Bn, 2028F
Tickets Food &Beverages Merchandise/Souvenirs Total
0.4
1.2
Source(s): Redseer Analysis

10. All these changes will continue to drive tourists to the region
~3X
Pent-up sentiment towards travel and
tourism is gaining momentum…
72%
85
72
68
51
41
30
17
3
4
18
International Tourist Inflow
In Mn, 2019-2028F
Level of Agreement to the Statement
% Respondents, Strongly Agree + Agree | N = 500
Survey executed in August 2023, In GCC
Top 3 Factors Motivating Travel
% Respondents, | N = 500
Survey executed in August 2023, In GCC
I will go on more
trips this year
2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F
31%
30%
13%
Attractions
Hospitality
Accessibility
…and attractions driving choice
of destination
As pent-up travel desires continue their momentum, Saudi
Arabia is experiencing a remarkable surge in tourist inflow,
aided by a significant shift in the purpose of travel as well.
The number of tourists visiting the Kingdom has surged by
an impressive 53%, skyrocketing from 16 million in 2022 to
30 million in 2023. This surge reflects a strong transition
from religious to leisure and entertainment-driven travel
within the tourist demographic. Projections indicate that
this trend will continue to soar, with an estimated 85 million
tourists expected to flock to Saudi Arabia by 2028, making
it well on track to achieve the Vision 2030 target of 100 Mn
tourists by 2030. Consequently, as Saudi Arabia intensifies
efforts to cultivate a vibrant cultural scene, it is bolstering
its global appeal, positioning itself as an irresistible
destination for international travellers seeking enriching
experiences and memorable adventures.
Source(s): Redseer Analysis
© Redseer 10
Conclusion - The building blocks have been set for a
vision beyond 2030
As the Kingdom of Saudi Arabia surges forward into a new era of growth and innovation, the groundwork has been
meticulously laid for a visionary journey beyond 2030. With a steadfast commitment to fostering a dynamic cultural
scene and bolstering its global appeal, Saudi Arabia is rapidly emerging as a dominant force in the realm of
entertainment and leisure. Proactive governance, underscored by initiatives aligned with the Vision 2030 agenda,
has propelled the nation towards economic diversification and social progress. Major investments flowing into the
leisure and entertainment sector are reshaping the landscape, promising unprecedented experiences for
residents and visitors alike. This remarkable transformation underscores the nation’s unwavering dedication to
enriching lives, fostering cultural vibrancy, and positioning itself as a beacon of innovation on the global stage.
Thus, the building blocks have been firmly set for a future beyond 2030, where Saudi Arabia stands tall as a global
leader in entertainment dominance.

11. Authors of the report.
© Redseer 10
Sandeep Ganediwalla
Managing Partner
Akshay Jayaprakasan
Associate Partner
Arjun Dua
Associate Consultant
Milli Saklani
Senior Business Analyst
Tania El Zein
Senior Research Analyst

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https://redseer.com/me/
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