The impact of entertainment ventures on Saudi Arabia’s economy
- Sulaiman Umar
- 03 Sep, 2023
- 667
RIYADH: Saudi Arabia is reaping the rewards of its substantial investments in diversifying its economy, with a key focus on the entertainment and tourism sectors. These investments have not only improved the nation’s income potential but have also paved the way for a departure from its reliance on hydrocarbons.
The results of these efforts are evident in the figures published by the Saudi Central Bank for July, which revealed a surplus of $17.7 billion in the Kingdom’s current account balance during the first quarter of 2023. This reflects a significant revenue boost from tourism, reaching $9.8 billion in the first quarter compared to $3 billion in the same period the previous year.
The OECD Tourism Trends and Policies 2022 report validates Saudi Arabia’s commitment to developing its tourism industry as one of the Kingdom’s fastest-growing sectors, significantly contributing to the national economy while creating a substantial number of jobs.
Adel Noueihed, managing director of Imagination Middle East, a global creative agency, highlighted that on a global scale, entertainment contributes to 4 percent of gross domestic product, while tourism accounts for 7 percent.
“When it comes to economic diversification, this is what KSA should aim to achieve when opening up these sectors,” he told Arab News.
“And these numbers make sense if you’re trying to diversify away from hydrocarbons that these sectors would be two really clear pillars of things the government can do to diversify,” Noueihed added.
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