Saudi Arabia announced nearly $1 billion in new cultural investments, part of its drive to build a regional entertainment hub and attract more tourists.
Some of the funding, unveiled at the Cultural Investment Conference in Riyadh, will come from the state-backed Cultural Development Fund known as CDF and entities it supports, while a Chinese company is contributing roughly half.
Chinese media group ORI pledged to invest 2 billion riyals ($533 million) to establish its regional headquarters in Saudi Arabia, using the kingdom as its regional base to invest in movies, tourism and fashion, according to a statement by the Saudi Ministry of Culture.
The investments, announced at the Cultural Investment Forum in Riyadh earlier this week, will boost cultural spending, part of Crown Prince Mohammed bin Salman’s Vision 2030 drive to diversify the economy away from oil. Increased spending under the plan is weighing on public budget, with the kingdom projecting a deeper deficit for this year than previously anticipated.
Tourism, which makes up about 5% of the domestic economy, is expected to be a major growth engine as Saudi Arabia seeks to attract more foreign visitors. Culture Minister Prince Badr bin Farhan said Monday the kingdom plans to open 600 museums by 2030, while the nation’s sovereign wealth fund is developing a futuristic city and resorts along the Red Sea coast.
The CDF unveiled a $266 million facility with private lenders including Lendo SA, Al Raeda, and Abdul Latif Jameel Finance, adding to its financing tools for cultural ventures. Cultural Assets Group, which has received CDF backing, said it’s targeting an additional 300 million riyals in investments after spending around 500 million riyals on companies in media, visual arts, fashion and museum. BSF Capital will manage about $100 million of CDF money to invest in the domestic film sector.
Lebanon-based Audi Capital said it was starting a $40 million fund focused on modern and contemporary art by Saudi and international artists.
“We’ll hold and promote them through exhibitions and museum loans, then sell them over time to create value for investors.” said Chief Executive Officer Daniel Asmar, a former Managing Director of Sotheby’s in the Middle East and North Africa.
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