The economic impact of the Saudi entertainment sector’s activities remains particularly high. A recent report showed that the industry will likely triple its GDP share to $6.2 billion by 2033, up from $2.4 billion in 2024.
Specific segments, gaming and live events, continue to drive the sector’s escalating growth. However, the rapid changes in the Saudi entertainment sector are primarily driven by the increasing adoption of immersive technologies, including virtual reality (VR) and augmented reality (AR).
Unlocking Growth Avenues in the Saudi Entertainment Sector
The widespread availability of high-speed internet, increasing disposable incomes, and a strong push for local production remain major driving forces sustaining the market’s upward momentum.
According to the report, one key enabler of this sector’s expansion is the increased adoption of AR/VR amid a growing shift towards immersive entertainment.
The impact of this trend will be widely visible in the job market. As more entertainment providers adopt these technologies, there’s a need to develop a domestic pipeline of skilled professionals capable of meeting future demands.
In fact, the AR/VR sector is making significant headway, and not just in entertainment. The adoption of duo technologies has significantly grown across business verticals, like retail, healthcare, education, and tourism. As a result, revenues in the Saudi AR/VR space are anticipated to reach $168.8 million by 2029, up from $124.4 million in 2025.
Changing consumer preferences and surging adoption of immersive technologies in entertainment will drive substantial investment in content development, distribution, and production methods.
This evolution presents a tremendous scope of growth for global companies in diverse segments and verticals within the entertainment sector.
Harnessing the Power of Immersive Technology in Gaming
Saudi Arabia promises to be the biggest gaming and e-sports market globally. Strong digital infrastructure and expansive use of immersive technologies provide an attractive proposition for both gamers and developers.
The debut of the e-sports World Cup in Riyadh last year brought a powerful impetus to the Saudi gaming and the wider entertainment sector, attracting a vast audience of players and enthusiasts.
Hosting the first edition of the global tournament tightly aligns with the country’s broader gaming and esports sector strategy, which looks to generate over $13.3 billion (SAR 50 billion) for the GDP and create 39,000 jobs by 2030.
Looking ahead, Saudi Arabia is also set to host the first-ever e-sports Olympics in 2027. Global spectacles like the World Cup and the Olympics create a profound impact on the economy and reinforce the Kingdom’s status as a key event hotspot and sports tourism destination.
For Saudi Arabia, gaming constitutes a sustainable factor in its economic development strategy, catalyzing long-term business growth by increasing demand for infrastructure improvements and stimulating myriad economic activities.
The growing emphasis on local content production has fueled Saudi Arabia’s competitive edge in game development. It is worth mentioning that the Kingdom currently hosts the first regional AAA game development in NEOM.
The projected growth in VR, AR, and gaming powers new product categories and business models as well as opens up new possibilities in entertainment, enhancing Saudi Arabia’s leadership role in the global creative field.
At AstroLabs, we have been at the forefront of supporting this transformation. Back in 2021, we partnered with the Saudi Ministry of Communications and Information Technology for their Game Changers program and launched 10 gaming studios, increasing the total number of local gaming studios by 100% in the Kingdom at that time.
Get in touch with one of our company formation experts to establish your entertainment business in Saudi Arabia. Book a free consultation session.