Saudi Arabia’s entertainment and amusement market is expected to reach $6.10 billion by 2033, up from $2.46 billion in 2024, with a CAGR of 10.61 percent from 2025 to 2033, a new report found.
The market is mostly being driven by the growing technical innovations, particularly in virtual reality and augmented reality, which have completely changed how consumers enjoy entertainment.
Technological revolution fuels growth in leisure and entertainment
The Saudi Arabia Entertainment and Amusement Market Size and Share Analysis – Growth Trends and Forecast Report 2025-2033 also revealed that the leisure and entertainment sector in the Kingdom is thriving due to a variety of interconnected reasons.
This sector has been heavily influenced by technological revolutions. The high application of virtual reality, augmented reality and high-definition monitors has enabled people to experience entertainment in ways not previously imagined. Besides enhancing quality materials, such technologies have created the demand for immersive experiences, reaching more people.
In addition, customers’ increased disposable income has greatly contributed to the growth of the industry. Individuals are keen on investing in entertainment alternatives that promise unique and memorable experiences. This has led businesses in the entertainment sector to continuously come up with innovative concepts and offering broad spectrums of services like live events, theme parks and streaming platforms.
In addition, the Saudi Arabian market is expected to be fueled by the increasing use of the internet and smartphones, which have generated new media and platforms for entertainment.
Key factors driving entertainment market’s surge
Saudi Arabia’s entertainment sector is being driven by a variety of key factors. Facilities are evolving rapidly due to large-scale construction and investment activities across the Kingdom.
To establish an ultra-luxury tourism and entertainment hub, the development environment includes several mega-projects, including the Red Sea Project that spans 28,000 square kilometers and includes an archipelago of over 90 islands. Examples such as NEOM, a $500 billion investment to develop a future city with entertainment districts, indicate the scale of infrastructure investment in the Kingdom.
With over 60 percent of the population below the age of 34, Saudi Arabia’s predominantly young demographic makeup is the prime force behind the leisure and amusement industry in the country. Saudi consumers spend 6.2 percent of their income on leisure and entertainment activities, higher than the average U.K. household expenditure of 4.2 percent, which suggests that the young population has a significant appetite for culture, sports and entertainment.
Finally, a number of important projects under Vision 2030, which aims to diversify the economy away from reliance on oil, demonstrate the Saudi government’s commitment to growing the entertainment industry.
The lifting of the 35-year cinema ban in December 2017 was a historic ruling that created previously unheard-of chances for regional and foreign businesses to contribute to the growth of the domestic entertainment sector. In order to facilitate and regulate entertainment activities across the Kingdom, the government has established specialized organizations such as the General Entertainment Authority (GEA).
Read: Oman unveils 2025 tourism plan to boost recreational offerings, elevate non-oil sector growth
Challenges emerge amid booming growth
The entertainment industry in Saudi Arabia faces several regulatory and administrative challenges, such as intricate licensing procedures, protracted approval periods and content limitations that necessitate cautious handling.
While businesses must adhere to stringent local restrictions regarding public gatherings, entertainment content and safety requirements, the requirement for government permissions for new initiatives and events might cause delays. Both domestic and foreign businesses wishing to enter the market face obstacles due to these regulatory complications and a lack of transparent, efficient processes.
Saudi Arabia’s entertainment and amusement market also faces difficulties due to its reliance on tourism. Geopolitical unrest, impediments to international travel, or unfavorable opinions about safety can all impact tourism, which can affect amusement and entertainment industry profits.
The demand for theme parks, resorts and events is also impacted by shifting worldwide travel preferences. The report notes that the industry must broaden its clientele for amusement and entertainment attractions to secure long-term success by fostering robust domestic demand in addition to foreign travel.
