Saudi’s GMedia, Oxford Business Group report reveals pulse of KSA media sector

The General Authority of Media Regulation (GMedia) in Saudi Arabia, which works on developing and organising the media sector in the Kingdom, in partnership with global publishing, research and consultancy firm Oxford Business Group (OBG), have launched a report titled ‘The State of the Media Sector in the Kingdom of Saudi Arabia and Opportunities for Investment‘.

The report includes insights from:

• HRH Princess Lamia bint Majed Al Saud, Secretary General of Alwaleed Philanthropies;
• HE Salman bin Yousef Al-Dossary, Saudi Arabia’s Minister of Media and Chairman of the Board of Directors, Gmedia;
• Mohamed Al Khereiji, Chairman, Al Arabia, and Chairman, SMC Group;
• Elda Choucair, CEO, Omnicom Media Group MENA;
• Mike Sneesby, CEO, MBC Group; 
• Ibraheem Altamimi, CEO, POWR;
• Abdulrahman Abumalih, CEO, Thmanyah; and
• Rawan Al Butairi, CEO, Saudi E-Sports Federation.

The report highlights how the Kingdom of Saudi Arabia’s media sector continues to expand and facilitates local content creation, encouraging private investment and creating employment opportunities. It showcases how the media sector has evolved into a strategic pillar of the creative economy, combining economic diversification with cultural expression and digital transformation.

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Ad spend, five core media segments and sector growth

The report also highlight how ad spend in Saudi Arabia was set to reach SAR9.4bn ($2.5bn) in 2025, an increase of 10.5 per cent year on year. Search advertising accounted for SAR3.8bn ($1bn) per Statista. Alongside social and influencer-led marketing, the channel mix includes paid search, programmatic display, OOH and emerging retail media networks.

In the foreword of the report, HE Salman Al-Dossary says, “This report does more than describe the current state of affairs. It captures the pulse of transformation with precise data and insightful analysis, spotlighting achievements to date and unveiling promising opportunities across five strategic domains shaping the future of Saudi media: visual media, audio media, publishing and digital content, gaming and e-sports, and advertising and marketing. These are not merely sectors – they are gateways to a thriving creative economy.”

The sector’s contribution to the Kingdom’s gross domestic product (GDP) is forecast to triple from SAR16bn ($4.3bn) in 2024 to SAR47bn ($12.5bn) by 2030, according to Gmedia projections – reflecting a compound annual growth rate (CAGR) of approximately 20 per cent.

Saudi’s digital platform growth and constraints within building blocks that must be addressed

This performance is set to be supported by digitalisation, new monetisation models and an expanding middle class with rising expectations for high-quality Arabic-language and locally produced content.

The Kingdom’s demographic profile is a notable advantage: with 71 per cent of the population under 35 and among the world’s highest rates of smartphone adoption.

The GMedia report also addresses structural challenges that persist, including content production capacity, shortages of specialised talent and limited studio infrastructure constrain domestic output. Meanwhile, efforts are ongoing to address regulation and monetisation inefficiencies.

Addressing these constraints – particularly skills development, early-stage financing access and IP enforcement – will be crucial to unlocking the sector’s full potential in the years from 2025, the report states.

In the report, Princess Lamia Al Saud says, “Several building blocks remain underdeveloped, including post-production capacity, props services and talent agencies. Closing these gaps represents a clear investment opportunity. Localisation is essential – not just in language, but also in storytelling, values and visual identity. Saudi content must feel authentically rooted in local culture, while maintaining the universal appeal that resonates with international audiences. While the government welcomes collaboration, global partners are encouraged to invest on the ground.”

The report also looks ahead, highlighting how Saudi Arabia is poised to consolidate its position as a regional destination for media innovation and creative industries.

Marketing and advertising reshaped by social media and artificial intelligence (AI)

The GMedia and OBG report also revealed that the most time spent on social media was on the TikTok and YouTube platforms, with estimated users on social media platforms expected to reach 34.1 million on TikTok, 27.2 million on YouTube, 24.7 million on Snapchat, and 16.9 million on Instagram in 2025.

A detailed view on the influencer economy and content creation revealed that KSA’s creator economy grew by 32 per cent in Q1 2025 year-on-year – led by an increase in niches such as beauty, up 56 per cent, lifestyle, up 46 per cent, and fashion, up 18 per cent – according to a study by Admitad and Stllr Network.

In the same period, TikTok recorded the highest growth in influencer-driven sales among all platforms, with its penetration reaching 88 per cent of the population, according to the Admitad-Stllr Network study.

The GMedia report also showed that campaign effectiveness increasingly depends on clear alignment with brand goals and measurable engagement outcomes such as conversion and acquisition costs.

According to McKinsey, organisations that integrate AI into marketing and sales strategies witness return on investment improvements of up to 10 to 20 per cent.

Commenting on how emerging technologies are reshaping advertising and addressing strategic challenges in the Saudi media market, Elda Choucair, CEO, Omnicom Media Group MENA, said, “Technology, namely artificial intelligence (AI), is fundamentally changing our industry. As media agencies manage advertisers’ budgets, we must constantly evolve our skill sets to navigate shifting platforms. There is a clear shift in the DNA of advertising towards technology and data, where understanding the science is as crucial as the art. AI is democratising content creation, making it more accessible for creative talent.”

Choucair added, “However, challenges persist. There remains a lack of Arabic content within the GCC, requiring considerable long-term investment that may not yield immediate ROI. Lastly, a mindset shift is required to view marketing as a long-term investment in brand equity, rather than just a cost. Any brand that stops investing will risk regression.”

Ad-tech innovation and investment enables

Furthermore, the report showcased how innovation and parterships are fuelling the growth of advertising in the region.

The report states that with near-universal internet access and with one of the world’s highest social media engagement rates, digital platforms are evolving from brand-building tools into real-time revenue drivers.

The convergence of AI, video and dataled personalisation is positioning innovation as an engine of KSA’s marketing transformation.

Saudi Arabia’s ad-tech market generated SAR101m ($26.9m) in 2024 and was forecast to reach SAR312m ($83.1m) by 2030, equivalent to a compound annual growth rate of 20.7 per cent.

The government-backed SAR4.1bn ($1.1bn) IGNITE initiative and SAR2.6bn ($700m) Saudi VC Company are supporting start-ups in advertising and marketing.

Also, in Q1 2025 KSA ad-tech platform Quantum raised SAR26.3m ($7m) in Pre-Series A funding from global investors including HearstLab – marking the firm’s first Middle East investment.

Additionally, Saudi ad-tech start-ups such as Taswiq.ai and Lucidya are rolling out AI solutions that enable e-commerce firms and brands to improve campaign targeting, automate content and analyse consumer sentiment in Arabic with greater accuracy.

Sharing his take on how Saudi Arabia’s media sector is shaping opportunities in advertising, Mohamed Al Khereiji, Chairman, Al Arabia, and Chairman, SMC Group, said, “The sector has undergone a fundamental transformation, evolving from a relatively underdeveloped industry to one that plays a central role in the economy. This shift has been driven by institutional reforms, the emergence of new platforms and the consolidation of major players.

Al Khereiji added, “Advertising expenditure still accounts for a smaller share of GDP than in comparable international markets, highlighting untapped potential. At the same time, digital platforms have become central to audience engagement. Social media, streaming and online video have grown rapidly, supported by one of the world’s highest internet penetration rates. Sports and entertainment are also emerging as powerful vehicles for advertisers, while the rise of e-sports has created new opportunities to reach younger audiences. Investment in digital billboards and data- led planning is transforming outdoor advertising from a static medium into one that is interactive and closely integrated with mobile campaigns.”

GMedia report reveals opportunities across the value chain

The GMedia and OBG report also shows how the convergence of technology, public investment and entrepreneurial energy is giving rise to new opportunities across the value chain, such as content production, digital distribution, media technology, infrastructure and skills development.

For investors, Saudi media presents an opportunity within a scaling market underpinned by strong demographics, regulatory development and institutional maturity. Early entrants can help to shape the ecosystem – capitalising on first-mover advantages while navigating operational and talent related constraints – as Saudi Arabia’s progress towards Vision 2030 continues to gather momentum.

MBC Group CEO Mike Sneeby says, “Opportunities exist across the entire production cycle – from scriptwriting and creative development to studios, infrastructure and distribution. As more facilities come online, capacity will grow, creating prospects for writers, producers, technicians and talent. Beyond television, gaming and e-sports are projected to become a significant contributor to GDP by 2030. Saudi Arabia is developing the region’s first AAA gaming studio – in NEOM – to develop high-profile games, reflecting local demand and the potential for international reach.”

The report reveals that Saudi media is creating economic value, driven by a digital shift and global partnerships. Such partnerships across public, private and non-profit entities are strengthening Saudi Arabia’s media ecosystem by supporting knowledge transfer, local capacity building and SME participation. Such collaboration helps to expand skills, diversify content development and align sector growth with Vision 2030 priorities.

Identifying investment avenues for regional and international players,  the report calls for strategic collaboration across production, infrastructure, talent development, finance and technology is generating avenues for participation and long-term growth. This includes:

• Content co-development: Partner with Saudi entities to expand Arabic-language film, music and digital media production.
• Infrastructure partnerships: Invest in studio, cinema and gaming facilities aligned with giga-projects.
• Talent collaboration: Work with academic institutions and industry leaders to strengthen media education and professional training.
• Capital investment: Provide tailored financing solutions to support content creation, distribution and emerging media ventures.
• Innovation and technology: Collaborate on advanced digital and production technologies to serve the evolving landscape.
• International media and entertainment events: Sponsorship revenue, media rights and visitor spending, which bolster the sector’s potential return on investment.

Reflecting on how global events, infrastructure and partnerships underpin gaming and e-sports returns, Ibraheem Altamimi, CEO, POWR, explained, “Meeting the objectives of the national strategy depends on strong infrastructure. Savvy Games Group, backed by the Public Investment Fund, is investing in studios and facilities, while Qiddiya City is developing a dedicated gaming and e-sports district to host major events and attract communities. Alongside these initiatives, there is strong demand for content. Fans are seeking long-term storytelling through films and documentaries. However, Arabic-language production capacity and specialised talent are still limited. Addressing these gaps will be essential for long term sector sustainability.”

The report also delves into building a transparent and investable media ecosystem; how Saudi Arabia’s media regulations are designed to safeguard and enable investment; and how the five media segments in the KSA value chain generate revenue across content, distribution and monetisation.

GMedia report shows rising local content demand and digital consumption in Saudi Arabia

According to the GMedia and OBG report, Saudi Arabia’s media audience is increasingly drawn to locally produced content, contributing to shifts in platform popularity, investment strategy and the talent pool.

Additionally, monetisation is also accelerating across new formats, with short-form video ad spend projected to reach SAR477.1m ($127m) by 2028, reflecting growing demand for bite-sized, mobile-first formats.

Reacting to some of the most notable advantages and challenges within the transition from audio-only content to a video format within the podcast industry, Abdulrahman Abumalih, CEO, Thmanyah, said, “We do not see the move from audio to visual as a transformation from one medium to another, but rather as two complementary experiences for two distinct audiences. The audio experience continues to have unique strengths – intimacy, ease of access and personal connection. The visual experience, meanwhile, opens new avenues for engagement, storytelling and audience growth.”

Abumalih added, “This diversification allows media players to reach a wider public audience and experiment with new forms of interaction and expression. However, it requires significant investment in specialised teams, studios and production capabilities to ensure that every medium serves its audience in the best possible way. Ultimately, both audio and video formats form part of a single, integrated media ecosystem, with each medium enhancing the other.

All in all, video, audio and reading habits in Saudi Arabia are reshaping demand, format and monetisation, the report reveals.

Some of the key figures from the GMedia report state that:

• Traditional TV remains dominant in Saudi Arabia, reaching over 96 per cent of the population, with average viewing time at 5h 25m daily in 2023, up 15 minutes from the previous year.
• Livestreaming revenue valued at SAR16.5bn ($4.4bn) in 2023 is projected to reach SAR60.8bn ($16.2bn) by 2030.
• 67 per cent of adults in Saudi Arabia listen to at least one podcast per week, per 2023 YouGov data.
• Saudi Arabia has witnessed a 600 per cent increase in live music events between 2022 and 2025, facilitating audience engagement and tourism.
• And more than 50 per cent of Saudis report reading at least one book per year, with trends shifting due to digital communities like BookTok – which has helped to reshape local reading habits and boosted interest in genres like fantasy, science fiction and thrillers.
• Short-form video content is reshaping engagement, with TikTok, Instagram Reels and Stories among top choices for advertisers. Average advertising spending per capita in Saudi Arabia’s search advertising segment is estimated at SAR100 ($27) in 2025, per Statista.
• KSA’s social commerce market is projected to reach SAR19.1bn ($5.1bn) by 2029, reflecting primary reliance on smartphones for digital access, and features like Instagram shopping tags . Digital channels are expected to account for 91 per cent of total ad spend in Saudi Arabia by 2030 per Statista.
• Influencer advertising is gaining traction, with average spending estimated to reach SAR13.43 ($3.58) per internet user in 2025. This reflects a shift towards content-driven promotion led by creators and the growing visibility of Saudi content across short-form platforms.
• Smart devices as the preferred platform for gaming in KSA is most popular among women, with 28.5 per cent, compared to 24.2 per cent overall and 21 per cent among men, per 2024 CST data. KSA is home to 23.5m gamers, with 42 per cent female participation.

Sharing her thoughts on how content and platform localisation in media and entertainment is key to achieving Vision 2030 objectives, Rawan Al Butairi, CEO, Saudi E-Sports Federation, said, “Localisation ensures that content resonates with our audience and reflects our culture. This includes producing Arabic-first broadcasts, commentary and media assets for all major tournaments – from the Saudi eLeague to the Saudi Fighting League. We also encourage local gaming developers and content creators to produce culturally relevant storytelling that represents Saudi identity.

Al Butairi revealed, “A report we developed with Niko Partners found that over 75 per cent of gamers value Arab cultural representation, and 41 per cent are more likely to play games that feature Arabic localisation. By prioritising localisation, we not only enhance engagement but also build platforms that can connect with audiences across the Arab world and beyond – ultimately strengthening the Kingdom’s position in the global gaming and e-sports industry.”

For more details and an in-depth look at ‘The State of the Media Sector in the Kingdom of Saudi Arabia and Opportunities for Investment‘, click here.