Crown Prince Mohammed bin Salman is the de facto leader of Saudi Arabia as prime minister.
There has been some movement in the relationship between American companies and their business partners in the Middle East.
Four and a half years have passed since Jamal Khashoggi, a prominent Washington Post columnist and Saudi journalist, was murdered at the Saudi consulate in Istanbul, Turkey (October 2018). There is a growing view among people that the time has come to move the business that has been stagnating.
Already, Gulf capitals such as Riyadh in Saudi Arabia, Doha in Qatar and Abu Dhabi in the United Arab Emirates (UAE) are flooded with American business owners seeking investment opportunities.
The cooling of relations with China over the Taiwan issue, the rise in interest rates due to interest rate hikes by the Federal Reserve Board (FRB), the collapse of FTX, a major cryptocurrency exchange that had spread large sums of money to the sports world and carried out flashy publicity, etc. The winds are blowing against the US media industry, forcing investors to explore new routes in search of opportunities.
Netflix released its first original Saudi film, “AlKhallat+,” in January this year. Digital media’s Mashable hailed it as “the dawn of Middle Eastern cinema on streaming platforms.”
In the same month, CNN, owned by Warner Bros. Discovery, partnered with International Media Investments (IMI), an Abu Dhabi-based private investment firm that owns Sky News Arabia, to launch CNN Business Arabic. (CNN Business Arabic).
IMI also partnered with US private equity (PE) fund RedBird Capital to form a joint venture, Redbird IMI.
With Jeff Zucker, who has held important positions in media companies such as NBC executive producer and CNN president, at the top of the management, the company is preparing a billion dollar fund to acquire media and sports-related companies.
LIV Golf, which is funded by the Saudi government-backed Public Investment Fund (PIF), has created a new golf tour that will run a total of 14 tournaments.
Amid protests by families of victims of the 9/11 terrorist attacks in the United States and activist groups criticizing Saudi Arabia’s longstanding human rights abuses, LIV Golf is owned by CW Network, a subsidiary of Nexstar Media Group.・Network), and the tournament broadcast was eventually broadcast nationwide.
Saudi Arabia aiming for breakthrough as a travel destination and filming location
Saudi Arabia’s eyes are now focused on diversifying its economy, backed by a dramatic increase in income due to persistently high oil prices.
At the forefront of these efforts is the world’s largest sovereign wealth fund, the Public Investment Fund (PIF, mentioned above). Asset balance is approximately $620 billion. Invest in Blackstone, Softbank Vision Fund (SVF) and Uber.
“Tourism” is expected to be a promising field that will bear the future of diversification.
Saudi Arabia is appealing to the world its stance of actively promoting cultural and economic reforms, and is trying to attract tourists.
Specifically, the ban on women driving has been lifted, the gender-segregated entrances to restaurants and cafes have been abolished, and the need for women to obtain passports and the permission of a male guardian, which was essential for women to travel abroad, has been improved. From around 2018, social reform, with the improvement of human rights as one of the pillars, will progress.
The Los Angeles Times reported on April 2 that Saudi authorities said in 2018 that they would contribute $64 billion to entertainment-related projects and events and $10 million to films. It looks like you have a plan in place.
Six months before Mr. Khashoggi’s murder, Saudi Crown Prince Mohammed bin Salman stepped in to promote those efforts and personally visited Los Angeles.
After the incident, the leading talent and artist agency Endeavor protested by returning $400 million in investment funds to PIF, and other American media and entertainment companies also started their activities in Saudi Arabia. canceled.
Today, however, the flow of funds has recovered and there is no longer a shortage of recipients.
Saudi Arabia’s Cultural Development Fund (CDF) launched a program in March that will provide a total of $233 million in funding to domestic and foreign companies to help develop the country’s film sector.
In addition to Saudi Arabia, Qatar, the host country of the FIFA World Cup Qatar 2022, which has shown great excitement around the world with repeated upsets and the success of Messi, who won the best player, has stadiums and subways. Although Western media criticized the treatment and working environment of foreign workers who were responsible for the construction of roads and road expansion, they succeeded in improving their image by using all possible means.
Oil money supplier
Below are the owners, executives, and notable investment deals for the top three Middle East funders of US media and entertainment companies: Saudi Arabia, Qatar, and the United Arab Emirates (UAE). and joint ventures.
Saudi Arabia
“Public Investment Fund (PIF)is a sovereign wealth (government-affiliated) fund that actively manages the nation’s financial assets with an asset balance of approximately $620 billion.Yasir Rumayyan, chairman of the state oil company Saudi Aramco and chairman of the English Premier League Newcastle United. Concurrent post.
Acquired Newcastle United in October 2021 for $409 million (100% ownership acquisition by a PIF-led consortium, with PIF holding 80%).
In April 2020, we acquired approximately 6% of the outstanding shares of Live Nation, the world’s largest concert search engine and promoter, for $500 million.
In June 2022, a new men’s professional golf tour “LIV Invitation” series, which competes with the PGA Tour, will be launched, and it has become a hot topic around the world. A total of 14 tournaments will be held in the 2023 season. Hosted by LIV Golf, Australia’s Greg Norman, a legend with 20 wins on the US Tour, including two majors, serves as CEO.
“MBC Groupis a broadcasting station in which the Saudi government owns more than 60% of its outstanding shares.It is considered to be the largest media company in the Middle East and North Africa region, and is a leading news channel on par with Qatar’s Al Jazeera. It operates “Al Arabiya”.
It is currently based in Dubai, UAE, but has reportedly reached an agreement with the Saudi government to move to Riyadh, the capital of Saudi Arabia.
It also operates a video distribution service “Shahid” that handles comprehensive entertainment content, and it is said that the number of members limited to the Middle East and North Africa region exceeds Netflix (Netflix).
The founder and chairman is Saudi businessman Waleed bin Ibrahim Al Ibrahim.
Sam Burnett, who has been the company’s chief operating officer (COO) since 2005 and CEO since 2011, retired once in 2019, but returned to the board the following year.
Peter Smith, who was appointed as managing director of MBC after serving as a senior executive at digital media operator Antenna Group and president of NBCUniversal International, stepped down in January this year. He was replaced by former Amazon Studios executive Christina Wayne.
“Saudi Arabia Research and Media Group (SRMG)is a major general publishing company in the Middle East and has close ties with Crown Prince Mohammed bin Salman, who is the de facto leader of Saudi Arabia as prime minister, and the Saudi government.
Jumana Al Rasheed is also the president of the Red Sea International Film Festival Foundation. She will co-produce the latest film, Jeanne du Barry, starring Johnny Depp.
The second Red Sea International Film Festival, held in Saudi Arabia’s second largest city, Jeddah, in December 2022, will feature big names such as actress Sharon Stone, singer-songwriter Bruno Mars, and film director Luca Guadagnino. Aligned. A third event is scheduled for November this year.
Penske Media, which publishes the long-established entertainment trade magazine Variety and the music information magazine Rolling Stone, has received funding from SRMG.
WWE, the world’s largest professional wrestling organization led by Chairman Vince McMahon, is a pioneer in the Saudi event world that has been in business since 2018. Endeavor returned the funds).
WWE is the Saudi Arabian entertainment sector regulator.General Entertainment Authority” and agreed to collaborate until 2027. Plans to hold a large-scale event every year.
Qatar
A Qatari sovereign wealth fund based in the capital DohaQatar Investment Authority”.
The Chief Executive Officer (CEO) is Mr. Mansour bin Ebrahim Al Mahmoud, who has served as CEO of the Qatar Museum and CEO of the Qatar Development Bank.
The most recent investment was The North Road, a partnership between former News Corp president and CEO Peter Chernin and private equity (PE) fund Providence Equity. (The North Road) for $150 million.
“beIN Media Group)” is a sports and entertainment station dedicated to the Middle East and Europe, established in 2014. Its chairman is Mr. Nasser Al-Khelaifi, chairman of Paris Saint-Germain (PSG), a powerhouse of the French soccer league Anne.
“Doha Film Institutefocuses on the development of Qatar’s film industry.Founded in 2010.The founder and chairman is Sheika Al Mayassa bint Hamad bin Khalifa Al Thani, sister of the Emir of Qatar.He is also the founder of the Qatar Museum of Art. be.
United Arab Emirates (UAE)
The UAE is accelerating various efforts to establish itself as a media and entertainment hub by actively accepting Western companies.
“Abu Dhabi Investment Authorityhas been working on projects in partnership with Hollywood studios since 2008.
In Dubai Studio City, a special economic zone for broadcasting stations, film companies, and video production companies, major works such as “Star Trek Beyond” and “Mission Impossible” have been produced.
A similar special economic zone that predates Studio City, Dubai Media City is home to production hubs for global media companies such as National Geographic and the BBC.
private investment companyInternational Media Investments (IMI)has invested in leading English-language newspapers The National, CNN Business Arabic, Sky News Arabia and Euronews.
Nath Booran, former CEO of Sky News Arabia and former head of Reuters’ television division, will lead the company.
Invested in Grid News, a US political news site.
RedBird Capital, a US private equity (PE) fund, and Jeff Zucker, former president of CNN, jointly established Redbird IMI and are looking for investment destinations.
IMI’s parent company is also an investment company “Abu Dhabi Media Investment Corporation”.
It is owned by Abu Dhabi royalty and UAE Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan.Owner of Manchester City, English Premier LeagueHe is known to soccer fans all over the world.
[original text]
(Translation and editing: Chikara Kawamura)
Source: BusinessInsider
Emma Warren is a well-known author and market analyst who writes for 24 news breaker. She is an expert in her field and her articles provide readers with insightful and informative analysis on the latest market trends and developments. With a keen understanding of the economy and a talent for explaining complex issues in an easy-to-understand manner, Emma’s writing is a must-read for anyone interested in staying up-to-date on the latest market news.