Saudi Arabia has significantly increased the cash rebate offered for international film productions in the kingdom, raising the headline figure to up to 60 percent of eligible domestic spending, the Saudi Film Commission announced Friday at the Cannes Film Festival. The new scheme makes the incentives offered by Saudi Arabia among the most generous in the world.
The revised incentives programme, unveiled by the Authority’s CEO Abdullah bin Nasser Al-Qahtani during the Cinema Market, also offers faster disbursements and a new package of financing solutions developed in partnership with the Cultural Development Fund, the state-backed agency that directs capital to Saudi cultural projects. The committee instituted the changes as part of an effort to simplify the operating environment for production companies and improve predictability of cash flow across the shooting cycle — steps that address early complaints expressed by some global producers about the Kingdom’s emerging film support programs.
The renewed push for the film comes amid a difficult period facing the Saudi tourism and hospitality sector. The 2026 war between the United States, Israel and Iran, which broke out in late February, has damaged air travel and inbound tourism through the Gulf. Saudi Arabia, which has been growing domestic tourism faster than any of its neighbors since opening to tourist visitors in 2019, was among the countries most vulnerable to the slowdown.
By focusing new government funding on the cinema sector – a key creative pillar for achieving the economic diversification of Crown Prince Mohammed bin Salman’s 2030 vision – Riyadh is signaling that it intends to continue building content production infrastructure despite broader regional headwinds. However, the decision comes at a time when international producers are examining filming in the Middle East more carefully than ever before.
“This announcement represents an extension of the Kingdom’s vision to build a sustainable cinema sector rooted in empowerment and partnership,” Al-Qahtani said in a statement, adding that recent regulatory work, including the launch of the Financial Audit and Disbursement Procedures Guide, was aimed at giving filmmakers “more clarity.”
Majid bin Abdul Mohsen Al-Hogail, CEO of the Cultural Development Fund, said that the new financing linkage comes in response to changing industry expectations.
He said: “Today, the speed and clarity of procedures have become major factors in shaping production and investment decisions in the global film industry.” “Through this program, we aim to provide a more efficient and flexible experience that meets the needs of projects at their various stages and enhances the Kingdom’s position as a reliable partner for global productions.”
The 60% cap puts Saudi Arabia at the top of the global film incentives landscape, well above major European national discounts (which typically range between 25 and 40%) and more aggressive recent programs outside the Asia-Pacific region, including a revised scheme for Thailand and an expanded position for Australia. But the Saudi Film Commission did not reveal the program’s total budget or the revised annual maximum discount – numbers that international producers will be keen to evaluate to determine the bankability of the new Saudi program.
