How Saudi Arabia is Building a Half-Billion-Dollar Creative Economy

In a striking demonstration of economic transformation, Saudi Arabia’s cultural sector has successfully attracted half a billion dollars in foreign direct investment and drawn 1,700 international investors, marking a watershed moment in the Kingdom’s ambitious journey to reshape its economic identity beyond oil dependency.

The revelations came during the inaugural Cultural Investment Conference held at Riyadh’s King Fahd Cultural Center, where Minister of Investment Khalid Al-Falih outlined the remarkable trajectory of the Kingdom’s creative economy. The Kingdom now hosts over 50,000 investors—both Saudi and international—classified within culture and creative categories, a figure that would have been unimaginable just a decade ago.

Speaking at a panel discussion moderated by Arab News Editor-in-Chief Faisal J. Abbas, Al-Falih emphasized the explosive growth from virtually nothing six or seven years ago to over $500 million in foreign cultural investments as of last year, with the sector continuing to expand at double-digit rates.

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The Vision Behind the Investment Wave

The cultural investment surge represents far more than mere entertainment spending—it embodies a fundamental pillar of Saudi Vision 2030, the Kingdom’s comprehensive blueprint for economic diversification and social transformation. Launched in April 2016 by Crown Prince Mohammed bin Salman, Vision 2030 aims to achieve increased diversification economically, socially, and culturally, positioning the nation to thrive in a post-oil global economy.

Minister Al-Falih framed cultural investment as essential to national identity, stating that without a soul as a country and society, no one would want to visit. This philosophical approach underscores how the Kingdom views culture not as a luxury, but as an existential necessity for its global relevance and economic future.

Vision 2030’s Quality of Life Program specifically targets enhancing cultural offerings, entertainment, and overall livability for citizens and residents, with goals including increasing household spending on cultural and entertainment activities from 2.9% to 6% of income. The program also aims to double the number of Saudi heritage sites registered with UNESCO.

Employment and Economic Multiplication

The economic impact extends well beyond investment figures. Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning, revealed that the cultural sector already employs approximately 235,000 people, with ambitious plans to triple the sector’s contribution to the economy by 2030, driven significantly by cultural exports.

The sector’s economic contribution is on track to triple by 2030, reaching 3 percent of GDP, positioning culture as a strategic driver within the post-oil knowledge economy—creating jobs, building infrastructure and expanding international relevance.

This employment boom aligns with global trends. According to UNESCO and UN Trade and Development, creative and cultural industries contribute approximately 3.1 percent of global gross domestic product and employ more young people than any other sector—making it particularly suitable for Saudi Arabia’s youth-dominated population structure.

The Strategic Investment Framework

Al-Falih described a collaborative triangle model connecting investor investment, government support, and direct government investment in the sector, complemented by civil society participation. This multipronged approach ensures sustainable growth across the ecosystem.

The Ministry of Investment has developed 40 specific investment opportunities in the cultural sector, all listed on the Invest Saudi platform, providing clear pathways for both domestic and international capital deployment.

Minister Alibrahim highlighted that during Vision 2030’s formative years, spending on culture was equally as important as, and perhaps even more important than, traditional budget items—a radical departure from conventional development priorities.

Riyadh Season: The Crown Jewel

Perhaps no initiative better exemplifies Saudi Arabia’s cultural ambitions than Riyadh Season, the Kingdom’s flagship entertainment festival. Introduced in 2019 by the General Entertainment Authority as part of the Saudi Seasons initiative, Riyadh Season runs from October through March and features entertainment, cultural, and sporting events across designated zones.

Last year’s edition attracted over 18 million visitors and features 14 themed entertainment zones, 11 world championships, and 10 exhibitions across more than 7.2 million square meters. The 2025-2026 season promises to be even more spectacular, with international celebrities, sporting events, and cultural showcases drawing global attention.

Major events such as concerts, music festivals, and sporting competitions including football, boxing and mixed martial arts are promoted under the Riyadh Season banner at venues like Mohammed Abdo Arena and Kingdom Arena.

With projects such as the Red Sea Project and the Diriyah Gate culture district, Saudi Arabia aims to host over 150 million visitors by 2030, with tourism contributing significantly to the economy.

Learning from South Korea’s Cultural Export Model

Minister Alibrahim specifically highlighted South Korea as a model, explaining how its rapid diversification led to a boom in cultural exports—a form of soft power so compelling that it inspired Saudis to learn the Korean language.

The Korean comparison is apt. By 2008, South Korea’s cultural exports surpassed imports for the first time, with the Korean Wave transforming from a regional phenomenon into global entertainment dominance. K-pop groups like BTS have become economic powerhouses in their own right, with BTS alone contributing over $5 billion annually to South Korea’s economy.

South Korea became one of the only countries with a dedicated goal to become the world’s leading exporter of popular culture, establishing a Ministry of Culture with a substantial budget focused on nurturing and exporting creative content.

The results speak volumes. Bank of Korea data shows the country’s intellectual property exports, including music, films, and games, more than tripled over the last decade to reach $9.85 billion in 2024. This dramatic growth demonstrates how strategic cultural investment can yield substantial economic returns.

The global K-pop market alone generated over $10 billion in revenue in 2024, with K-beauty product exports projected to grow by 15% in 2025, fueled by endorsements from K-pop idols.

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Entrepreneurship Over Corporatization

Significantly, Alibrahim emphasized that the culture sector needs entrepreneurs, not only large corporations—a recognition that creative industries thrive on individual innovation and artistic vision rather than purely institutional capital.

This entrepreneurial focus aligns with broader Vision 2030 goals. The national plan aims to increase the contribution of small and medium-sized enterprises to GDP from 20 to 35 percent by 2030, with cultural SMEs playing a vital role in that expansion.

Infrastructure and Institutional Support

The Kingdom’s commitment extends beyond financial investment to institutional development. The Ministry of Culture, established in 2018 to lead Vision 2030’s cultural transformation, now guides a nationwide cultural renaissance through a strategy spanning 16 sectors.

In May 2016, a General Authority for Entertainment was announced by royal decree, into which over $2 billion has been invested. This Authority has been instrumental in organizing events ranging from international concerts to wrestling promotions, fundamentally reshaping Saudi Arabia’s entertainment landscape.

Historic milestones include the first public live music concert in over 25 years held in Riyadh in May 2017, featuring American country musician Toby Keith and Saudi singer Rabeh Sager.

Soft Power and Global Perception

Minister Alibrahim linked cultural development directly to the Kingdom’s global reputation, noting that people remember generosity and are now seeing increased quality in user experience when interacting with the Kingdom.

This represents a sophisticated understanding of cultural diplomacy. Soft power arises from the values a country holds and expresses through its culture, mobilized through public diplomacy including cultural exchanges and government subsidies of cultural exports.

In a multipolar world where traditional alliances are tested and new coalitions formed, cultural diplomacy offers a field of shared imagination, with Saudi Arabia building platforms for exchange that are more adaptable, human, and open-ended than formal diplomacy alone.

Challenges and Opportunities Ahead

The Kingdom faces both opportunities and challenges as it pursues its cultural ambitions. Family offices and ultra-high-net-worth individuals across the Middle East are increasingly aligning their investment strategies with Vision 2030, co-investing with the Public Investment Fund which has assets exceeding $700 billion.

A generational shift in Middle Eastern family offices is occurring, with Western-educated, technology-aware next-generation leaders steering family capital into more purposeful, active portfolios.

However, success will require sustained commitment. While Vision 2030 aims to reduce oil dependency, as of 2024, oil still accounts for approximately 40% of Saudi GDP and 75% of fiscal revenue, underscoring the importance of successfully diversifying into sectors like culture.

A Two-Day Platform for Future Growth

The two-day Cultural Investment Conference, featuring over 38 panel discussions, marks a significant step in empowering the cultural sector as a dynamic economic engine. The event brings together investors, cultural leaders, policymakers, and decision-makers from around the world.

As Saudi Arabia prepares to mark the 10th anniversary of Vision 2030’s launch next April, few areas better capture the pace and philosophy of transformation than the cultural sector—once peripheral to national development, now recognized as a strategic asset central to economic planning, diplomacy and national self-understanding.

Looking Forward

The conference underscores how Saudi Arabia is positioning culture not merely as entertainment, but as essential infrastructure for economic diversification, youth employment, and global engagement. With half a billion dollars already invested and ambitious targets for tripling the sector’s GDP contribution, the Kingdom is charting a distinctive path that blends heritage with innovation, tradition with modernity.

As the 10th anniversary of Vision 2030’s launch approaches, the project’s most enduring legacy may lie in its ability to rewire cultural imagination—moving beyond bold goals and execution to tell a story of renewal, pride and possibility.

For international investors, entrepreneurs, and cultural institutions, Saudi Arabia’s cultural investment boom represents an unprecedented opportunity to participate in one of the most ambitious national transformation projects of the 21st century. With government backing, entrepreneurial incentives, and a massive domestic market, the Kingdom’s creative economy stands poised for exponential growth in the years ahead.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

30th September, 2025