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HomeInvestmentInside Saudi Arabia’s Booming Media and Digital Economy

Inside Saudi Arabia’s Booming Media and Digital Economy

Saudi Arabia’s media sector is undergoing a remarkable transformation. Local content demand, rapid digital adoption, and strategic investment opportunities are driving this change. A new report by GMedia and Oxford Business Group highlights how the Kingdom is reshaping media, gaming, advertising, and digital platforms.

The study draws insights from leading figures, including HE Salman bin Yousef Al-Dossary, Saudi Minister of Media; HRH Princess Lamia bint Majed Al Saud; and top executives from MBC Group, Omnicom Media, POWR, and SMC Group. Together, they illustrate the sector’s strategic role in the creative economy. They also show its importance in advancing Vision 2030 objectives.

According to the report, advertising expenditure in Saudi Arabia is projected to reach SAR9.4bn ($2.5bn) in 2025. This represents a 10.5 per cent increase from the previous year. Paid search, programmatic display, social media, and influencer marketing drive this growth. In particular, short-form video content and AI-enabled ad solutions are reshaping audience engagement and campaign effectiveness.

Digital platforms play a central role in this transformation. With 71 per cent of the population under 35 and near-universal smartphone adoption, audiences increasingly demand Arabic-language and locally produced content. Livestreaming revenue, currently valued at SAR16.5bn ($4.4bn), is forecast to reach SAR60.8bn ($16.2bn) by 2030. Moreover, influencer-driven content and social commerce continue to fuel strong growth.

However, structural challenges remain. Limited studio infrastructure, talent shortages, and gaps in post-production and props services constrain domestic output. HRH Princess Lamia emphasizes that localizing storytelling, culture, and visual identity is essential. This approach ensures long-term audience engagement and maximizes investment returns.

The gaming and e-sports industry is another key driver. Saudi Arabia hosts 23.5 million gamers, with 42 per cent female participation. Investments in NEOM’s AAA gaming studio and Qiddiya’s dedicated districts show rising demand for interactive content. Rawan Al Butairi, CEO of the Saudi E-Sports Federation, highlights that Arabic localization boosts engagement and strengthens global competitiveness.

Experts, including Elda Choucair of Omnicom and Mohammed Al Khereiji of SMC Group, point out that combining technology, AI, and data-driven marketing with creative talent creates new revenue opportunities. The GMedia report concludes that strategic investment across content production, infrastructure, talent, and technology will unlock the sector’s full potential by 2030.

Overall, Saudi Arabia’s media sector is emerging as a key engine for economic diversification, job creation, and digital innovation. As a result, it offers investors early opportunities while aligning closely with the Kingdom’s Vision 2030.