https://arab.news/z7c53
RIYADH: Saudi Arabia’s General Entertainment Authority has increased its financial support for small and medium enterprises in the sector to up to SR100 million ($26.6 million), according to an official announcement.
The initiative, in partnership with the Kafalah financing guarantee program for SMEs, aims to enhance and empower the entertainment industry in the Kingdom, as stated in a post by the GEA on the X platform.
The program offers coverage of up to 90 percent, depending on the size of the enterprise.
Initially launched in 2022, the initiative provided financing of up to SR15 million for medium enterprises, SR5 million for small companies, and SR2.5 million for micro-businesses through approved banks and financing firms. Specific details about the new SR100 million support have not yet been disclosed.
This program is part of a broader effort to support and stimulate investments in the entertainment sector, coordinated by the Ministry of Finance, the General Entertainment Authority, and the Quality of Life Program Center. It aligns with the objectives of Saudi Vision 2030, which is to support and develop the entertainment industry in the Kingdom.
Vision 2030 aims to transform Saudi Arabia’s entertainment sector by increasing household spending on recreation from 2.9 percent to 6 percent by 2030.
It seeks to generate over SR120 billion in investments, create 100,000 direct and indirect jobs, and enhance the sector’s contribution to the economy.
Since its inception in July 2022, the undertaking has provided approximately SR70 million in financing and guarantees to entertainment establishments across Saudi Arabia.
By the end of June 2023, a total of 16 establishments had benefited from the program, with the value of guarantees reaching SR31.3 million, supporting micro, small, and medium-sized enterprises.
The initiative aims to further develop the entertainment sector by contributing to the growth of beneficiary establishments, helping them evolve into a major entity within the industry.
It also seeks to provide necessary guarantees for financing and increase funding for businesses in entertainment and related services, including the sector’s supply chain and infrastructure.
Additionally, the initiative aims to enhance the entertainment sector’s ecosystem and promote sustainability.