Boom in Saudi's entertainment sector bodes well for Jeddah developers
Saudi’s booming entertainment sector will give developers in Jeddah more opportunities to invest in diversified markets, a new report has found
Saudi’s booming entertainment sector will give developers in Jeddah more opportunities to invest in diversified markets, a new report has found.
According to JLL’s Q2 2018 Jeddah Real Estate Market report, the expansion of Jeddah’s entertainment sector and cultural offerings bodes well for several sectors in the kingdom in the long-term, bringing long-term growth to the city’s hotel, residential, and retail industries.
The hotel sector is already seeing a series of cultural, leisure and entertainment initiatives being introduced in Jeddah’s real estate market, which includes the Jeddah Opera House.
These projects are aimed at diversifying Jeddah’s visitor base, which is expected to see a growing mix of corporate, leisure, local and gradually international visitors, creating further demand for hotels in the market, the report added.
Craig Plumb, head of research, MENA at JLL, said: “The announcement of the Jeddah Opera House, and the subsequent development of cinemas and cultural centres will introduce further investment opportunities for international and local companies, looking to move into new sectors.”
“The Kingdom is now in its implementation phase of the Saudi Vision 2030, which aims to diversify the economy from oil dependency, by increasingly investing into the tourism and other sectors. Developments in the entertainment, art and cultural sector will improve the sentiment across all categories of the real estate market”
Several projects, many of which have already been handed over this year, will also help to bolster this development, while proving beneficial to other sectors and markets within the kingdom.
An example of this would be the entertainment sector's direct impact on the city’s the retail sector, with the first permanent cinema to be housed in the Red Sea Mall in Jeddah.
Vox Cinemas will be investing in the mall, with operations set to commence in Q1 2019. The retail sector will also benefit from a number of new cinemas resulting from the agreement signed earlier this year between Vue Cinemas and Al Hokair Holding Group.
Plans for the Obhur Bridge by Jeddah Metro will also help boost the residential sector by reducing the travel distances towards major hubs and business centres, making the northern suburbs a more desirable destination to live.
The report added that with Jeddah being the gateway city to Makkah, such initiatives will aim to “create an attractive business environment” while also stimulating “further investment within the region”.