The Saudi Cultural Development Fund has officially launched its Film Industry Grant Scheme, which provides financial support to local and international film companies looking to get involved in the country’s burgeoning film industry.
The initiative, with a portfolio of US$233 million (879 million Saudi Riyals), was first unveiled in early 2022 as part of the country’s US$1.1 billion IGNITE digital content program and then during the Red Sea International Film Festival teased in Jeddah again in December.
The program was officially launched alongside last week’s film-focused event Ignite the Scene in Riyadh, hosted by the Saudi Ministry of Communications and Information Technology.
The CDF said in a press release that the initiative is open to local and international companies and aims to support the growth of a sustainable local film industry by empowering the private sector with funding packages that support local content and encourage film production.
The program joins a series of state-backed initiatives by Saudi Arabia aimed at spurring the development of a film and television sector following the lifting of the ban on 35 cinemas in the country at the end of 2017 as part of a strategy to free the economy from getting rid of oil dependence.
The CDF added that the financial packages offered under the program are aimed at small and medium-sized enterprises in response to interest from local and international investors and film enthusiasts in this segment of the emerging film and television industry.
“We are pleased to announce that we have partnered with strategic financial institutions across the country to provide financial solutions to companies involved in the film industry to support the film industry, create financial sustainability for film projects and a healthy maintain market dynamics,” said CDF’s CEO. Mohammed Bindayel.
“We invite all financial and investment institutions to join us in this mission to build and strengthen this emerging industry.”
The program is divided into two main financing streams: a credit stream that allows companies to borrow and retain ownership of their projects, and an investment stream that focuses on manufacturing and infrastructure projects.
At the Riyadh event, the CDF kicked off the credit flow by signing two agreements with local financial partners, fintech company Lendo and investment firm Sukuk Capital, under which they will provide financing packages to companies operating in the Saudi film sector.
The flow of investments will start later this year.
Local and international companies involved in the film industry interested in a loan under the Film Sector Financing Program can apply through the CDF website.
The CDF was launched in January 2021 as one of several development funds to support various economic sectors, all linked to the National Development Fund of Saudi Arabia.
She is complementary to the roles of other government agencies in the film industry, with the main role being that of a financier.
The fund’s services are not aimed at government agencies, but rather at private entities and NGOs that want to work in the country’s growing film and television ecosystem.
Source: Deadline
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