Media & Entertainment 2025 Comparisons

Over the past 12 months, the Kingdom of Saudi Arabia (KSA)’s entertainment and media sector has seen unprecedented growth and strategic development. Driven by the government’s vision, the media industry is projected to double its economic contribution by 2030. The General Authority for Media Regulation (GAMR) projects that by 2030, KSA’s media sector will contribute approximately USD12 billion to the national economy. This represents a significant boost from around USD6 billion in 2023.

Employment within the media sector is also set to increase and local authorities have set targets of creating 160,000 media sector jobs by 2030. Growth in the media landscape is supported by robust policy support and investment incentives. For example, the IGNITE programme, a digital content creation programme backed by over 20 local government authorities has committed to USD1.1 billion to promote local content creation and digital infrastructure, including a USD234 million Film Sector Financing Program to fund local productions.

Major infrastructure developments are also contributing to making KSA a desired location for foreign film productions. Over 35 new film studios across KSA and world-class production facilities at NEOM’s Media Village, Bajdah Studios, and Film AlUla have attracted over 235 productions to Saudi locations, including international feature films from foreign film industries such as Hollywood and Bollywood.

The sector’s momentum has been significantly accelerated by KSA’s rapid digital infrastructure transformation. KSA has achieved 78% nationwide 5G coverage, with average internet speeds reaching 322 Mbps. This connectivity has unlocked new opportunities for high-volume streaming, cloud-based production workflows, and AI-powered content services. In parallel, the data centre market is projected to exceed USD2 billion by 2028, growing at an annual rate of about 12%. Together, these technological advances will help fuel streaming content consumption in KSA.

The streaming and cinema segments are also reshaping deal flows and business models. Cinema revenues are expanding and video streaming is rising annually. By 2027, the combined video sector (theatrical, streaming and on-demand) is expected to generate approximately USD4 billion in revenue. This growth has led to high-profile collaborations between Saudi producers and international platforms. For example, Netflix launched a flagship documentary series chronicling the Saudi Pro League, documenting the rise of KSA’s premier football league, which has attracted global football superstars like Cristiano Ronaldo. This project was produced by Whisper Films in collaboration with the Saudi Ministry of Sports. This project underscores KSA’s emergence as a market capable of producing world-class content for global audiences.

Additionally, the past year witnessed foreign direct investment into the region, notably the minority acquisition by Warner Bros. Discovery of OSN (owner of the OSN+ and Anghami streaming platforms). OSN and Anghami are set to benefit from Warner Bros. Discovery’s extensive content catalogue (including HBO content). Resultantly, OSN is becoming a super-aggregator of entertainment in KSA and the Gulf, offering films, series and music subscriptions under a unified experience. The transaction underscores the appetite for bundling content and building regional champions that can compete with foreign service offerings.

Hand-in-hand with these commercial milestones, the regulatory environment is evolving rapidly. The Digital Content Platform Regulations issued by the Communications, Space and Technology Commission (CST) require all over-the-top platform, gaming and digital media platforms to register with CST. The aim is to create a structured framework that protects consumers and clarifies obligations for global players providing services to consumers in KSA.

Overall, the past year’s trends show rapid expansion, heavy investment and regulatory reforms which together create a fertile ground for entertainment and media transactions in KSA.

Within KSA’s fast-evolving media ecosystem, certain platforms and content formats are experiencing especially robust growth. Cinema and streaming video stand out. Since cinemas were unbanned in 2018, theatrical revenues have boomed with a 19% compound annual growth rate in cinema box office, and video streaming is growing 10% annually. The combined “video sector” (including theatrical and online streaming) is expected to reach USD4 billion by 2027, making film and long-form streaming series a high-growth segment. Notably, Saudi audiences have eagerly embraced streaming platforms through both regional services like MBC’s Shahid and global players like Netflix – driving demand for Arabic-language series and documentaries. This has spurred a wave of investments in original Saudi series and reality programmes tailored for streaming release.

Another area experiencing exponential growth is video gaming and esports. KSA now leads the MENA region in gaming investment and engagement. The impact of video games and esports is fuelled by a young population and high connectivity, as well as the Public Investment Fund (PIF)’s multi-billion-dollar investments in game developers and esports companies. The Saudi Esports World Cup, in Riyadh is a months-long competition bringing the world’s best gamers to KSA. This year, Saudi Esports World Cup is set to award gamers with prizes totalling USD70 million. The event is expected to attract millions of viewers globally, driving demand for local production services, live broadcasting rights, sponsorships and streaming partnerships. The Esports World Cup is positioning KSA as a hub for competitive gaming content, interactive live streams and ancillary media (like behind-the-scenes documentaries and influencer commentary). For brands, it creates an unprecedented platform to reach young digital-first audiences, further solidifying esports as a cornerstone of KSA’s entertainment strategy.

In the audio media space, podcasting and music streaming are experiencing notable growth. KSA has emerged as the Arab world’s leader in podcast consumption, boasting over 5 million regular podcast listeners and about 67% of adults tuning in weekly.

Social media and short-form video remain hugely influential platforms as well, especially among youth. YouTube, Snapchat, Instagram and TikTok have large Saudi user bases driving content creation in genres like comedy skits, influencer vlogs and short documentaries. The formal licensing of social media influencers indicates that social media advertising is a key growth area. Social media influencers are required to obtain influencer licences before promoting or advertising products or services in KSA.

Meanwhile, unscripted and reality TV content is expanding on both satellite TV and streaming. Importantly, all these high-growth content genres are supported by KSA’s young, tech-savvy demographics and improving connectivity. With nationwide 5G coverage and internet speeds 59% above the global average, consumption of digital video, mobile games and streaming content has become seamless.

Deal-making in the Saudi media sector has been characterised by collaboration and slate-style investments. International studios and local entities are increasingly entering long-term partnerships instead of one-off deals. For example, Film AlUla and Stampede Ventures have partnered on a deal to bring ten films and television productions to KSA over the next three years. Such deals and partnerships ensure a steady pipeline of projects and allow knowledge transfer to local crews over multiple projects. Deals also include training components to develop Saudi talent, indicating a trend of structuring deals with capacity-building goals (not just content output).

Recent developments in film-funding models are set to drastically change deal structures in KSA. Over the next three years, IGNITE is offering USD234 million in soft money incentives to both local and foreign producers to foster development in the media sector.

Additionally, late last year, the Saudi Cultural Development Fund launched a USD100 million film sector financing programme. The fund is split into two portions, with money being allocated for loans and for investments. Loans are available to Saudi companies and foreign companies that have local partners and can be utilised for all aspects of film production. Eligible productions must be filmed entirely in KSA and must commit to using at least 25% local crew. More details are awaited on the investment’s aspect of the fund, which will no doubt significantly change the way profit-sharing deals are structured in KSA (and consequently on how future disputes may be triggered).

State Participation in funding and investments is a new development in KSA. The full effects of this are yet to be seen. Please see 2.1 Back-End Profit Participation Deal Structures on the incentives and investments being undertaken by Saudi authorities.

International co-productions are becoming more common as KSA positions itself as a global filming hub. These cross-border projects bring benefits (like combined resources and access to multiple markets) but pose unique challenges in aligning different legal systems and business cultures. A key strategy to address these issues is through upfront clarity in contracts, such as by explicitly negotiating governing law and jurisdiction clauses, and ensuring that there is clarity on which country’s regulations apply to critical areas (such as labour and health and safety).

The COVID-19 pandemic forced the global film and TV industry to rethink how production contracts address risk, and these changes are also reflected in KSA. 

Force majeure clauses now clearly list public health emergencies as qualifying events. Unlike older agreements with broad force majeure language, recent contracts in Saudi productions define how pandemic-related suspensions will be handled. They often specify suspension periods, rights to terminate if delays exceed a set duration, and who bears the financial impact – such as whether crew are paid during stoppages and how production schedules are adjusted.

Insurance requirements have also evolved. Production interruption or “pandemic” insurance is increasingly built into budgets. Some Saudi co-productions require producers to secure coverage for communicable disease disruptions or even obtain government assurances to backstop losses if authorities halt filming.

Health and safety protocols are another priority. Agreements now reference Ministry of Health guidelines and detailed COVID-19 safety measures, including testing, quarantine rules and medical staff on set. Contracts assign clear responsibility and funding for these measures, sometimes with contingency budgets for health compliance.

Under Saudi Labour Law, the formation of trade unions is not permitted, and collective bargaining does not take place. Due to the structure of the Saudi labour market, the authors do not expect any strikes or demands for collective bargaining negotiations.

Strikes are prohibited under Saudi law, and labour actions of this nature are not legally recognised or practised. Given the regulatory environment and the legal framework governing labour relations in KSA, the authors do not foresee any disruption to the media sector arising from strike activity. The sector is expected to remain stable, with minimal risk of labour-related interruptions.

Please see 3.2 Union Strikes and 3.3 Future of Strikes.

KSA has introduced a range of tax incentives aimed at attracting investment across key sectors, including entertainment. These incentives are part of KSA’s strategy to diversify its economy and position itself as a regional hub for tourism, culture, and creative industries. These include reduced corporate income tax rates for qualifying companies, exemptions in Special Economic Zones (SEZs), and sector specific deductions for eligible costs such as production equipment and infrastructure investments.

For example, entertainment project includes those in NEOM (a futuristic city spanning 26,500 km², designed to run entirely on renewable energy, including sub-projects like The Line, Oxagon, and Trojena, focusing on sustainability, innovation, and tourism) and Qiddiya (located near Riyadh, a 376 km² entertainment, sports and cultural hub aiming to become a global destination for immersive experiences and youth engagement), which may benefit from up to 30 years of tax exemption and customs duty relief on imported goods and equipment used in entertainment and media projects.

These incentives have significantly boosted interest in local productions and foreign collaborations, encouraging the establishment of film production facilities, live events and digital content creation hubs. As a result, there has been a marked increase in foreign co-productions, international talent partnerships and investment in Saudi-based entertainment ventures.

According to PwC’s 2024 guide and economic zone regulations, businesses operating within these giga-projects or designated SEZs may benefit from:

• corporate income tax exemptions for up to 30 years in some zones;
• customs duty waivers on imports and exports, especially for machinery, equipment and materials;
• 100% foreign ownership in most sectors;
• VAT exemptions on certain transactions;
• streamlined licensing and visa procedures for foreign employees; and
• reduced utility costs and land lease rates.

These incentives are designed to attract international companies and foster innovation, especially in sectors like entertainment, digital media and tourism.

KSA competes with other Gulf jurisdictions by offering a robust set of tax incentives tailored to attract production companies and multinational investors. These include 100% full foreign ownership, streamlined licensing and the regional headquarters (RHQ) programmes, which grant qualifying entities 0% corporate income tax and 0% withholding tax for 30 years, effective January 2024.

Legal challenges for producers include navigating withholding tax on cross-border payments (ranging from 5% to 20%) and ensuring compliance with transfer pricing rules under OECD guidelines. 

Producers must also manage risks related to double taxation and ensure proper documentation to avoid audit exposure.

Points to consider:

• RHQs benefit from 0% corporate and withholding tax for 30 years starting January 2024;
• RHQs must comply with OECD-aligned transfer pricing rules;
• risks include audit exposure and potential loss of RHQ status if non-compliant;
• detailed Zakat, Tax and Customs Authority (ZATCA) ZATCA guidelines on RHQ eligibility, activities and tax treatment;
• transfer pricing documentation and VAT compliance are mandatory;
• aims to attract multinationals to KSA’s mega projects; and
• emphasis on arm’s length pricing, robust documentation and functional analysis.

Compared to other Gulf Co-operation Council (GCC) states, KSA’s offer of long-term tax relief, combined with regulatory clarity and substantial government backing for the entertainment sector, presents a compelling value proposition for international producers. However, producers must carefully manage complex legal and tax compliance obligations. Structuring operations to align with RHQ requirements, avoiding permanent establishment risks and maintaining rigorous documentation are essential to preserving benefits and avoiding audit exposure.

Entertainment companies seeking to leverage cross-border tax incentives in KSA must navigate a range of legal and tax considerations to ensure compliance and optimise their tax position.

Points to consider include the following.

• Permanent establishment (PE) rules – a company may be deemed to have a permanent establishment if it has a fixed place of business, local employees or repeatedly conducts commercial activities in the jurisdiction. Operating in KSA without a PE may trigger withholding tax obligations.
• Transfer pricing compliance – related-party transactions must be documented and priced according to OECD standards.
• Zakat (a mandatory form of charitable giving in Islam) versus corporate tax – Saudi/GCC-owned entities are subject to Zakat (2.5%), while foreign-owned entities pay corporate income tax at 20%.
• Double taxation agreements (DTAs) – KSA has signed DTAs with several countries, which may reduce tax burdens on cross-border income, prevent double taxations and provide relief mechanisms.
• Legal structuring – proper legal structuring and intercompany agreements through clear contractual frameworks for licensing, service provision or content distribution are essential to optimise tax exposure and ensure compliance.

KSA is actively promoting public-private partnerships to finance entertainment projects, reflecting a broader strategic push to diversify its economy and develop a globally competitive creative sector. This approach is being actively promoted through major sovereign and sectoral funds such as the PIF, the Saudi Tourism Development Fund and other government-affiliated investments.

These funds co-finance large-scale projects, especially those aligned with Saudi government vision. Entertainment ventures in NEOM, Qiddiya and Amaala (a Saudi luxury tourism destination focused on the art of comprehensive wellness) often receive government-backed financial support, making KSA a growing hub for co-financed productions that minimise the risk of investment on the foreign investor and accelerate project timeline.

KSA is in the process of modernising its intellectual property framework to address the evolving legal questions posed by artificial intelligence (AI), particularly regarding copyright ownership. As AI-generated content becomes more prevalent in media, design, music and software, KSA is proactively exploring regulatory approaches to define and manage ownership rights in this emerging domain.

A draft Intellectual Property Law, still currently under review, proposes that copyright protection will only be granted to works that involve significant human intellectual input. Content produced solely by AI, without meaningful human authorship or creative direction, would not qualify for protection and would enter the public domain. The draft law does not define what qualifies as a “significant” or “prominent” human contribution.

This aligns with international norms such as those adopted by the EUIPO, USPTO and WIPO, but creates ambiguity around what qualifies as “significant” human involvement – a concept likely to be debated in future legal interpretations (EUIPO, USPTO, and WIPO are all organisations involved in intellectual property (IP) rights, but they operate at different levels).

The main enforcement challenge lies in the absence of a clear author. Without a human creator, assigning ownership, enforcing rights and pursuing infringement claims becomes legally complex. KSA, as many other countries, currently relies on traditional copyright frameworks, which are not fully equipped to handle these nuances.

The draft Intellectual Property Law also addresses:

• IP created in outer space by Saudi-funded missions;
• works made for hire, assigning ownership to employers; and
• compulsory licensing and Sharia compliance in IP matters.

While KSA has not yet seen high-profile domestic litigation over AI-generated entertainment content, it is closely monitoring international precedents, such as the US case of Andersen v Stability AI, which challenges the legality of using copyrighted material in AI training and may set a precedent for how courts globally treat such issues.

According to recent legal analysis in the Journal of Lifestyle & SDG’s Review, Saudi legal scholars and regulators , including the Saudi Authority for Intellectual Property (SAIP) and Saudi Data and Artificial Intelligence Authority (SDAIA), are studying cases like Andersen to guide local legislation.

As mentioned above, the draft Intellectual Property Law states that copyright protection will only apply to works with significant human contribution. Fully AI-generated works would enter the public domain.

Enforcement challenges include:

• lack of a clear author for AI-generated works;
• difficulty in assigning ownership and pursuing infringement claims; and
• reliance on traditional copyright frameworks that are not fully equipped to handle AI-related complexities.

KSA is actively evaluating these cases as it develops its own frameworks for AI governance and intellectual property protection. SAIP and SDAIA are considering mechanisms to prevent unauthorised use of copyrighted material in AI training, reflecting a cautious approach to balancing innovation with IP protection.

KSA currently does not have a formal licensing regime for training generative AI models with copyrighted content. This might create uncertainty for both content owners and AI developers, especially regarding liability, ownership of trained outputs, and whether dataset curation constitutes infringement.

That said, there is growing consideration for a broader legislative modification which aims to recognise the need for adaptive licensing models which could include differentiated approaches for commercial versus non-commercial AI use, or tiered access depending on the type of content (eg, government funded versus private sector media), as well as exceptions for text and data mining, in jurisdictions like the EU and Japan to support AI R&D without undermining IP protection.

The government is promoting public-private partnerships to facilitate lawful access to training data. These partnerships aim to establish structured legal pathways for AI developers to use footage or media content lawfully, especially from state-owned or semi-public institutions like national broadcasters or cultural archives. Some initiatives are looking at creating licensed repositories or data commons, where contributors can voluntarily license footage for AI training under agreed terms.

Additionally, there is increasing interest in open data policies to support AI development. While these have traditionally focused on non-copyrighted material (eg, public records, statistical data), there is growing pressure to extend these frameworks to include creative and audiovisual content with proper permissions. These efforts are critical for creating Arabic language and culturally grounded generative models, which currently lack sufficient training data due to language and content access limitations.

Please see 3. Risk Allocation and Unions. 

In KSA’s context, where there is no local guild, deals historically are individually negotiated and are done so on a “buy-out” basis, where actors and writers get a one-time fee covering all uses. Given the importance of digital content and the increasing number of co-productions coming to KSA in the near future, it will be interesting to see how the issue of residuals gets tackled going forward.

As mentioned in 2.1 Back-End and Profit Participation Deal Structures, as more locally backed funding is released, the authors expect that there will be an increasing focus on revenue-sharing models and deal structures generally.

There is limited information on this point. The authors expect these issues will be tackled as the media sector grows and matures.

Please see 3. Risk Allocation and Unions.

In KSA, M&A transactions involving entertainment assets such as film or TV libraries raise several legal considerations.

IP Ownership

The purpose is to provide clear title, and transferability of copyrights, licences and distribution rights is critical. Saudi law requires proper registration and documentation of IP assets to avoid post-transaction disputes. Lack of proper documentation can result in exclusion of key assets from the sale or later disputes over ownership, royalties or relicensing rights.

Content Licensing Agreements

Many entertainment assets are subject to third-party licensing. Buyers must assess whether these licences are assignable or require renegotiation, as it is common practice to include an anti-assignment clause in licence agreements. Failure to secure assignability or renegotiate terms could lead to loss of monetisation rights post-acquisition.

Censorship and Regulatory Compliance

Content must comply with Saudi cultural and regulatory standards. Due diligence should include a review of content for potential violations of public decency or religious sensitivities. GAMR regulates content in KSA and enforces strict guidelines on themes such as nudity, profanity, religious representation and political sensitivity. Acquired content libraries must be screened for regulatory risk, especially older or foreign content that may not meet current standards. In some cases, buyers may choose to exclude certain titles from the acquisition or prepare localised edits in advance.

Digital Rights and Platform Agreements

In today’s market, the value of an entertainment library often depends more on digital rights than on traditional broadcast rights. Streaming and digital distribution rights must be carefully reviewed, especially where cross-border platforms are involved as there may be restrictions on transferring rights or geographic limitations that affect deal valuation.

KSA’s Competition Law, enforced by the General Authority for Competition (GAC), prohibits anti-competitive practices such as market dominance, price fixing and abuse of position.

In entertainment M&A, combining cable operators with studios or streamers may raise concerns if:

• the merger results in vertical integration that limits market access for competitors, which is of growing interest to GAC because they can influence both upstream content production and downstream distribution and could result in preferential treatment for affiliated content;
• there is exclusive control over content distribution, potentially stifling competition; or
• the deal leads to price manipulation or reduced consumer choice. There is also risk of bundling or tying practices, limiting options for consumers and smaller service providers.

GAC has the authority to block or conditionally approve mergers that may harm market dynamics, even if the entities are not traditional competitors. In addition, GAC may require pre-merger notification and conduct a competitive impact assessment, especially for deals involving large market players or cross-border elements.

Prohibited anti-competitive practices include:

• market dominance abuse;
• price fixing;
• exclusive dealing; and
• vertical integration that restricts access to markets or content.

These practices are scrutinised especially when mergers involve cable operators, studios or streaming platforms, as they may:

• limit market access for competitors;
• create exclusive control over content distribution; and
• lead to price manipulation or reduced consumer choice.

Pre-Merger Notification Requirements

Under the 2025 Economic Concentration Guidelines, GAC requires notification if the following thresholds are met:

• worldwide annual sales of all parties exceed SAR200 million;
• target entity’s sales exceed SAR40 million; and
• sales in KSA by all parties exceed SAR40 million, with the target contributing.

These thresholds apply to:

• acquisitions;
• mergers; and
• joint ventures.

GAC may also require a competitive impact assessment, especially for deals involving:

• large market players;
• cross-border elements; and
• vertical or horizontal integration

Special Considerations for Entertainment Sector

Vertical mergers (eg, a cable operator acquiring a studio) may raise red flags if they result in exclusive content control.

Joint ventures for new content or platforms may be exempt from notification if they introduce products not currently available in KSA, or involve non-competing partners.

In Saudi M&A transactions, representations and warranties related to talent agreements typically address the following.

Validity and Enforceability

Contracts must be written and fixed term, especially for non-Saudi talent. If no term is specified, the law defaults to a one-year duration, which is automatically renewable. Contracts must be attested and comply with updated labour regulations.

Absence of Disputes or Claims

Sellers must confirm there are no ongoing disputes with talent, such as:

• unpaid royalties;
• breach of contract claims; and
• wrongful termination allegations.

The Labour Law imposes stricter penalties for unjust dismissal and requires written resignation procedures.

Compliance with Saudisation Policies

Entertainment companies must meet sector-specific Saudisation quotas, which now apply to:

• tourism and hospitality roles;
• technical and engineering jobs; and
• creative and production roles.

Buyers often require confirmation that the target company is in full compliance, as violations may affect work permit renewals.

Termination and Change of Control Clauses

Talent contracts may include exit rights or renegotiation triggers upon:

• ownership change; and
• merger or acquisition.

These clauses must be reviewed to assess continuity risk and potential liabilities.

Indemnities and Risk Allocation

Buyers typically seek indemnities for:

• breaches of Labour Law;
• undisclosed liabilities (eg, unpaid compensation, benefits); and
• non-compliance with Saudisation or housing/transport obligations.

The Saudi Labour Law mandates housing and transport allowances, which must be reflected in contracts.

Legal advisers in KSA focus on the following.

Chain of Title Verification

This entails ensuring that legacy IP rights (eg, scripts, music, footage) are properly documented and transferable and are backed by valid assignments or licences from the original creators. It becomes particularly complex when projects involved multiple contributors, co-productions or rights acquired under older legal regimes, where documentation may be incomplete or informal.

Royalty and Residual Obligations

This entails reviewing ongoing payment obligations to creators or performers. It is important to note that royalty arrangements in KSA may be less standardised than in Hollywood-style deals, but are still present in contracts.

Moral Rights

While not as strongly codified as in some jurisdictions, Saudi law respects creators’ rights to attribution and integrity, which may affect content modification. This is especially relevant in remastering, franchising or adapting legacy works into new formats. Moral rights are recognised under Articles 8 and 9 of the Copyright Law. These rights are perpetual and inalienable.

Talent Contract Review

This entails assessing exclusivity, duration and scope of rights granted, especially in cross-platform or international deals.

A thorough IP audit and contractual due diligence are essential to mitigate risks and ensure clean asset transfer.

In KSA, entertainment contracts increasingly include audit rights clauses, allowing talent or rights-holders to verify financial statements related to profit sharing. These clauses typically:

• grant access to financial records at specified intervals;
1. access is typically limited to records directly related to the project or IP in question, not the entire company’s finances;
• require the production company to maintain detailed revenue and expense logs, these logs must include gross receipts, distribution fees, production expenses and overhead allocations, all of which factor into profit-sharing calculations; and
• include dispute resolution mechanisms if discrepancies are found. Contracts can include escalation clauses, where unresolved discrepancies from an audit trigger mediation or arbitration.

Under the Saudi Companies Law, companies must maintain transparent financial reporting, and auditors are required for most corporate structures except micro enterprises. External auditors are required for companies that meet size or structural criteria, and their reports are often used in disputes involving contractual profit sharing. This legal framework supports contractual audit provisions, enhances accountability and aligns with the contractual right to audit, reinforcing enforceability and providing parties with a statutory basis to demand accurate reporting.

Non-compete clauses are enforceable in KSA if they meet specific conditions under the Labour Law and contractual principles.

• They must be reasonable in scope, duration and geography. Saudi courts do not apply a fixed threshold but generally disfavour overly broad restrictions. However, in practice, scope must clearly define the type of work or industry prohibited, and duration is usually limited to 6–24 months. Depending on the nature of the talent or role, geographic limitations must relate to the region where the employer operates or where the content is commercially exploited.
• They should protect a legitimate business interest, such as proprietary content or trade secrets, including unreleased scripts, concepts or episodes, confidential production techniques, audience data and marketing strategies, exclusive branding or personal association with a particular platform or show.
• They must not unfairly restrict employment opportunities or violate public policy and not prevent an individual from earning a living in accordance with the Saudi Labour Law, and may be struck from the contract if they do not conform to the law.

In the entertainment sector, non-compete clauses are often used to prevent talent from working with competing platforms or studios during and shortly after a contract term. The enforceability often depends on whether the talent received compensation or other consideration (eg, exclusivity fees) for accepting the restriction. Courts assess enforceability on a case-by-case basis by assessing the harm to the employer versus the impact on the talent’s career. The courts may partially enforce a clause by narrowing its terms, rather than voiding it entirely.

KSA’s push toward digital transformation has led to increased adoption of AI, VR (virtual reality) and AR (augmented reality) in entertainment (AR and VR are converging technologies that are transforming how we interact with digital content and the world around us. AR overlays digital information onto the real world, while VR creates entirely simulated environments).

As part of its continuous development, KSA is actively investing in tech-enabled cultural production, with mega-projects like NEOM, Qiddiya, and The Line integrating immersive technologies into entertainment, tourism and live experiences. In addition, government initiatives (through SDAIA and the Ministry of Culture) encourage tech-driven content creation, including AI assisted scriptwriting, virtual production environments and mixed reality storytelling.

As a result, traditional entertainment contracts are evolving to account for new modes of creation, distribution and audience interaction.

Contracts now often include the following.

• IP ownership clauses for AI-generated content. These clauses may assign ownership to the party that provided the creative input or initiated the AI process or may treat the AI output as a derivative of an underlying human-authored work. These terms help avoid disputes over authorship, licensing and downstream revenue sharing for machine-assisted outputs.
• Usage rights for immersive technologies to clarify whether licensed content (characters, music, logos) can be used in VR/AR experiences, metaverse platforms or virtual concerts/galleries. Standard audiovisual licensing often does not extend to immersive or interactive environments, so parties are negotiating new rights categories for these formats. Producers may also secure exclusive rights to develop content for specific platforms requiring custom licensing structures.
• Data protection provisions, especially when biometric or behavioural data is collected such as facial scans, eye movement, location and reaction patterns, is protected under KSA Personal Data Protection Law (PDPL). It is considered personal and may trigger consent, notification and security requirements.

The Audiovisual Media Law and Digital Content Platform Regulations require compliance with content standards and licensing for emerging formats such as registration with the competent authority and appropriate licences and content classification approvals.

Under the New Companies Law, entertainment companies can be formed as follows.

• Limited Liability Companies (LLCs) – offering liability protection and flexibility. LLCs can be wholly Saudi, wholly foreign (with proper licensing) or jointly owned, but foreign ownership may require approval from the Ministry of Investment.
• Simplified Joint-Stock Companies (SJSCs) – ideal for start-ups and foreign investors. They are well suited for production companies linked to larger media groups or cross-border co-productions, especially where IP ownership and investor rights need to be clearly structured.

To operate, entities must do the following.

• Obtain a commercial registration from the Ministry of Commerce. This is the base step for the incorporation of any company. The commercial registration identifies the company’s name, type and permitted activities. The activity must correspond with entertainment, production, media services or distribution, and will be tied to the company’s licensing obligations with sector regulators.
• Issue the relevant licence from the GAMR for media activities. Companies must apply for licences for production, broadcasting and content distribution, and for each project or shoot, may also need filming permits, especially in public spaces or heritage areas. GAMR also requires content classification compliance, meaning pre-release review and approval for distribution in KSA.
• Comply with Saudisation by meeting the relevant quotas which vary by size and sector, and labour laws, including regulations on working hours, contracts, health insurance and The General Organisation for Social Insurance registration. For short-term productions, companies may use temporary work visas or partner with licensed local providers to supply support staff, but proper documentation is essential to avoid fines.

While KSA does not have guilds or unions equivalent to Western jurisdictions, contracts often include industry standard terms for talent and crew. Especially when involving foreign talent or co-productions, legal advisers often import US or UK-style templates, tailored to Saudi law, and must ensure such contracts are translated into Arabic and properly executed to be enforceable in local courts, if needed.

Saudi law distinguishes between linear and non-linear broadcasting, with licensing requirements for each.

The differences include the following.

• FAST (Free Ad Supported Streaming TV):
1. requires compliance with advertising regulations;
2. must maintain content logs for 90 days allowing GAMR and other authorities to audit the content in the event of a complaint;
3. subject to stricter content censorship due to broader public access especially for family-safe content, modesty rules and national image;
4. under Saudi broadcasting regulations, FAST services are treated similarly to linear broadcasting, requiring a media licence from GAMR, and potentially channel-specific approval; and
5. advertising content must comply with religious and cultural sensitivities, and content classification rules.
• AVOD (Ad Supported Video on Demand):
1. similar advertising rules apply;
2. often bundled with platform-specific licensing as it is still regulated as a digital media service and requires licensing by GAMR for content distribution; and
3. AVOD services are expected to moderate user-generated or uploaded third-party content, especially where algorithms are used to insert or match ads dynamically.
• SVOD (Subscription Video on Demand):
1. requires consumer protection compliance with the e-commerce law and the PDPL; and
2. less exposure to advertising regulations but must meet data privacy and billing transparency standards.

Previously, foreign service providers had to establish a local presence to provide services to consumers in KSA. However, in 2024, CST issued the Digital Content Platform Regulations (the “DCP Regulations”). The DCP Regulations apply to both local and foreign digital content platform service providers. Depending on the type of services offered, some digital content services (such as video OTT platforms) can now be provided to consumers in KSA without the need to set up a local presence, provided that regulatory approvals are obtained from CST.

Saudi contracts are evolving to accommodate interactive formats, with compensation models including:

• flat fees plus performance bonuses based on metrics like user engagement, time spent on screen and viewer retention may serve as performance benchmarks;
• revenue sharing tied to specific interactive segments; and
• residuals for reused or repurposed content.

Given the novelty of such formats, contracts should clearly define:

• scope of interactivity (choices are limited to dialogue paths, alternate endings, or full narrative);
• rights to likeness and voice across branching narratives; and
• royalty structures for derivative uses. These terms should align with the applicable laws especially for performers whose persona is central to the brand or storyline.

These terms must comply with Saudi-applicable laws, be reviewed for alignment with cultural content standards and must comply with the Audiovisual Media Law and GAMR content regulations, particularly regarding depictions of violence, religion, gender roles or interactivity involving children. Additionally, they must conform to the PDPL if any viewer input, feedback or biometric data is collected through the interactive interface.