Growth in the Kingdom as KSA focuses on entertainment and tourism sectors

17 January 2019

In a recent report by CBRE, Saudi Arabia’s real estate market is expected to experience exponential growth as the Kingdom focuses on advancing its entertainment and tourism sectors.

CBRE shared its key insights on the Kingdom’s fledgling entertainment and tourism sectors as part of its whitepaper titled Entertainment in Saudi Arabia: The Game
Changer. The report predicts that, fuelled by public and private investments and as part of its efforts to reduce reliance on oil, the entertainment sector is expected to make important contributions to economic growth in 2019 and will generate 300,000 jobs by 2020. The report states that Public Investment Fund (PIF) will be driving growth in the sector, however 40% of entertainment plans are forecast to be funded by the private sector.

“Planned reforms to the country’s laws including those on Public Private Partnerships (PPPs) as well as those that greatly reduce the time it takes to source business visas,
will be instrumental in further growing the entertainment sector, according to the paper. The lifting of the ban on cinemas will also be a key driver for growth.

The whitepaper acknowledges that tailoring projects to accommodate the requirements of operators with the aim of differentiating their projects will be key to
ensuring consistent footfall across retail centres and large-scale entertainment destinations. Furthermore, differentiation will prove crucial as more than 350 cinemas and 2,500 screens are forecast to open across KSA by 2030,” according to CBRE.

Tourism is another sector that is likely to reap the benefits of the nation’s entertainment reforms. CBRE notes that Saudi Arabia’s tourism industry is heavily reliant on those travelling to perform Hajj and Umrah. 

Simon Townsend, General Manager (KSA) and Head of Strategic Advisory, CBRE MENAT, said: “The entertainment sector is a game changer for the Kingdom. Previously untapped, it presents an abundance of opportunities for foreign investors who are eager to enter the Saudi market. These impressive plans highlight the ambitious vision of the Saudi Government, and CBRE is committed to supporting this growth in any way it can.”