|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 2.34
Billion
|
|
CAGR (2025-2030)
|
10.63%
|
|
Fastest Growing Segment
|
Teenagers
|
|
Largest Market
|
Western
|
|
Market Size (2030)
|
USD 4.29 Billion
|
Market Overview
Saudi
Arabia Family Entertainment Centers market was valued at USD
2.34 Billion
in 2024 and is expected to grow
to USD 4.29 Billion by
2030 with a CAGR of 10.63%. The Saudi Arabia Family Entertainment
Centers market is experiencing steady growth, driven by several key factors.
Increasing disposable income, particularly among the young population, is
fueling demand for entertainment and leisure activities. The rapid pace of
urbanization and the development of modern shopping malls and mixed-use
complexes in major cities like Riyadh and Jeddah has further expanded the
market for FECs. Also, the government's initiatives to diversify the economy
under Vision 2030, including investments in tourism and entertainment, are
providing a strong foundation for the growth of family-oriented entertainment
options. With a growing emphasis on enhancing domestic tourism and improving
the quality of life, the demand for FECs offering a range of experiences, from
arcades to themed attractions, is expected to rise significantly.
Key Market Drivers
Rising
Tourism Industry
The rising tourism industry in Saudi
Arabia is a significant driver for the growth of Family Entertainment Centers
(FECs). As a part of this, according to a recent study, as of 2022, the
number of international tourists arriving in Saudi Arabia amounted to around 18
million, indicating a significant increase from the previous year. With the
government’s Vision 2030 initiative aiming to position Saudi Arabia as a global
tourism hub, there has been a considerable increase in investments in
entertainment infrastructure. This includes the development of new theme parks,
malls, and leisure complexes to cater to both domestic and international
visitors. The influx of tourists, particularly from neighboring regions and
beyond, is boosting demand for family-oriented leisure activities, making FECs
an attractive option for both residents and tourists. The expanding tourism
sector is also accompanied by the growth of a young and affluent population,
further increasing the market potential. As the Kingdom continues to diversify
its economy, FECs are becoming an integral part of the country's entertainment
offerings, offering diverse experiences ranging from traditional games to
advanced virtual reality and esports attractions.
Rapid
Urbanization and The Growth of Modern Shopping Malls
Rapid urbanization and the expansion of modern
shopping malls are pivotal drivers of the Family Entertainment Centers (FECs)
market in Saudi Arabia. As a part of this, according to a recent study, as
of 2023, Saudi Arabia's urban population grew by 0.2 percentage points, or
13.07 percent, annually. Notably, more than 50% of the new retail space in
Riyadh is dedicated to entertainment venues, reflecting a strategic shift
towards leisure-focused retail environments. This transformation is evident in
projects like the Mall of Saudi, which allocates substantial areas to dining,
leisure, and entertainment. Such developments are complemented by substantial
investments from entities like Saudi Entertainment Ventures (SEVEN), which is
developing 21 entertainment destinations across 14 cities, featuring over 150
attractions. These initiatives align with Vision 2030's objectives to diversify
the economy and enhance the quality of life, positioning FECs as central
components of the Kingdom's entertainment infrastructure.
Increasing
Participation in Recreational and Social Activities
The increasing participation in recreational and
social activities is a significant driver of the Family Entertainment Centers
(FECs) market in Saudi Arabia. With over 60% of the population under the age of
35, there is a strong demand for diverse entertainment options that cater to
modern tastes. As a part of this, according to a recent study, as of 2024,
there
were 1,560 participants in all, comprising both Saudi (87.3%) and non-Saudi
(12.7%) citizens. This youthful demographic demonstrates a high appetite
for leisure activities, with many spending a substantial portion of their
income on entertainment. The government's Vision 2030 initiative has further
bolstered this trend by lifting restrictions on cinemas and concerts, fostering
a more vibrant and accessible entertainment landscape. Also, the establishment
of the General Entertainment Authority (GEA) has facilitated the development of
various recreational facilities, including FECs, across the Kingdom. These
centers offer a range of activities that promote social interaction and
community engagement, aligning with the nation's objectives to enhance the
quality of life for its residents.
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Key Market Challenges
High
Capital Investment
High capital investment is a significant challenge for
the growth of Family Entertainment Centers (FECs) in Saudi Arabia. Establishing
state-of-the-art facilities requires substantial upfront costs, including
expenses for land acquisition, construction, and the installation of advanced
gaming and entertainment technologies. These initial investments can be a
barrier for new entrants and may limit the expansion of existing centers. Also,
the need for continuous innovation and the introduction of new attractions to
maintain customer interest further strains financial resources. The economic
landscape, influenced by factors such as fluctuating oil prices and inflation,
can impact consumer spending power, affecting ticket sales and overall revenue.
Also, the competitive nature of the entertainment industry necessitates ongoing
investments in marketing and customer engagement strategies to attract and
retain visitors. Therefore, while the demand for recreational activities is
growing, the high capital investment required poses a substantial challenge to
the sustainable development of FECs in the Kingdom.
Economic
Factors
Economic factors present notable challenges for the
Family Entertainment Centers (FECs) market in Saudi Arabia. Despite the
government's Vision 2030 initiative aiming to diversify the economy and reduce
oil dependence, the Kingdom's economic landscape remains susceptible to
fluctuations in global oil prices. These fluctuations can influence disposable
incomes and consumer spending patterns, potentially affecting the frequency of
visits to entertainment venues. Also, the high capital investment required to
establish and maintain state-of-the-art FECs, coupled with operational costs
such as staffing, technology upgrades, and maintenance, can strain financial
resources. This financial pressure may deter potential investors and limit the
expansion of existing centers. Also, the competitive nature of the
entertainment industry necessitates continuous innovation and marketing efforts
to attract and retain customers, further increasing operational expenses.
Therefore, while there is a growing demand for recreational activities,
economic factors pose significant challenges to the sustainable growth of the
FEC market in Saudi Arabia.
Key Market Trends
Youth-Centric
Focus
The youth-centric focus is a pivotal trend shaping the
Family Entertainment Centers (FECs) market in Saudi Arabia. With over 60% of
the population under the age of 35, there is a pronounced demand for modern,
engaging, and diverse entertainment options that cater to this dynamic
demographic. Teenagers are drawn to immersive experiences such as Virtual
Reality (VR) and Augmented Reality (AR) gaming zones, which offer cutting-edge
technology and interactive play. This trend is further supported by the
integration of advanced gaming technologies, including esports arenas and 3D
gaming, within FECs. The government's Vision 2030 initiative has also played a
significant role by lifting restrictions on cinemas and concerts, thereby
fostering a more vibrant entertainment landscape. Also, the establishment of
the General Entertainment Authority (GEA) has facilitated the development of
various recreational facilities, including FECs, across the Kingdom. These
developments underscore the growing importance of youth-oriented entertainment in
Saudi Arabia's evolving leisure sector.
Technological
Integration
Technological integration is a key trend shaping the
Family Entertainment Centers (FECs) market in Saudi Arabia, enhancing the
overall visitor experience and driving market growth. With the Kingdom’s focus
on innovation as part of Vision 2030, FECs are increasingly incorporating
advanced technologies such as Virtual Reality (VR) and Augmented Reality (AR)
to attract tech-savvy audiences. VR gaming zones and AR-enhanced attractions
are becoming commonplace, providing immersive and interactive experiences for
visitors. This technological shift is also reflected in the rise of Extended
Reality (XR) technologies, which are gaining traction in entertainment venues
across the Kingdom. These technologies not only offer more engaging experiences
but also align with Saudi Arabia's strategic goals of fostering digital
innovation and enhancing the entertainment landscape. As consumer demand for
immersive, cutting-edge entertainment rises, the integration of these
technologies in FECs is expected to continue growing, positioning Saudi Arabia
as a leader in digital entertainment innovation.
Government
Initiatives
Government initiatives are pivotal in shaping the
Family Entertainment Centers (FECs) market in Saudi Arabia, aligning with the
nation's Vision 2030 objectives to diversify the economy and enhance the
quality of life. The establishment of the General Entertainment Authority (GEA)
in 2016 marked a significant step towards regulating and developing the
entertainment sector, facilitating the growth of FECs across the Kingdom. As of
early 2023, the GEA had issued licenses for over 24 theme parks and 421 entertainment
centers, reflecting a robust expansion in the sector. Also, the launch of the
Events Investment Fund (EIF) in 2023 underscores the government's commitment to
developing sustainable infrastructure and fostering strategic partnerships to
boost the entertainment industry. These initiatives are expected to create numerous
job opportunities, contribute significantly to the national GDP, and transform
Saudi Arabia into a leading global entertainment destination. Collectively,
these efforts are instrumental in driving the growth and evolution of the FEC
market in Saudi Arabia.
Segmental Insights
Visitor
Demographic Insights
Young adults 19-25 dominated the Saudi Arabia Family
Entertainment Centers market, driven by several key factors. This age group
exhibits a strong inclination toward immersive and technologically advanced
experiences, such as Virtual Reality (VR) and Augmented Reality (AR) gaming
zones, which are increasingly prevalent in modern FECs. The Kingdom's Vision
2030 initiative has played a pivotal role in expanding the entertainment
sector, leading to the proliferation of diverse leisure venues that cater to
youthful preferences. Also, the rise in disposable income among young Saudis
has empowered them to seek out and spend on varied entertainment options. The
integration of FECs within shopping malls and urban centers has further
enhanced accessibility, making them popular destinations for socializing and
recreation.
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Regional Insights
Western region dominated the Saudi Arabia Family
Entertainment Centers market, driven by several key factors. Firstly, the
region's strategic location as a gateway for pilgrims and tourists has led to
significant investments in entertainment infrastructure to cater to both
residents and visitors. The government's Vision 2030 initiative has further
accelerated this growth by promoting diversification and enhancing the quality
of life, resulting in the development of numerous entertainment projects in the
western region. Also, the area's relatively liberal social environment has
encouraged the establishment of diverse entertainment options, appealing to a
broad demographic. Also, the Northern & Central region's is driven by several
key factors. Riyadh, as the capital and a major urban center, boasts a large,
youthful population with increasing disposable incomes, fostering a strong
demand for diverse entertainment options.
Recent Developments
- In February 2024, Saudi
Safari Group plans to invest EGP 1 billion in Egypt’s family entertainment
sector by 2030, beginning with the launch of the first Chuck E. Cheese outlet
in West Cairo’s Royal Park Mall through its subsidiary, Unique Hospitality
Company. The group aims to expand the brand further across Cairo, Alexandria,
and Sharm El-Sheikh, with additional openings also planned in Turkey and
Morocco.
- In June 2024, Abdulmohsen
Alhokair Group for Tourism and Development (Alhokair Group) has officially
launched a new family entertainment center under the “PlayoCity” brand, in
collaboration with Hasbro, at The Village Mall in Jeddah.The facility spans an
area of 3,407.90 square meters.
- In July 2023, Saudi
Entertainment Ventures (Seven) has begun work on a USD 347 millionentertainment
complex in Almadinah, set to span 4,000 square metres near King Fahad Central
Park. The development will offer immersive attractions, world-class rides, and
a wide range of family-focused entertainment experiences.
Key Market Players
- Dave
and Buster’s, Inc.
- Smaaash
Entertainment Private Limited
- KidZania
Operations S.A.R.L.
- Landmark
Leisure LLC
- Merlin
Entertainments Limited
- Disney
DTC LLC
- Six
Flags Entertainment Corporation
- SeaWorld
Parks & Entertainment, Inc.
- Great
Wolf Resorts, Inc.
- Round1
Entertainment Inc
|
By Visitor
Demographic
|
By Facility Size
|
By Revenue Source
|
By Type
|
By Region
|
- Young adults 19-25
- Adults >25
- Families with Children 0-9
- Families with Children 9-12
- Teenagers
|
- 10,000-20,000
- >40,000 Sq Feet
- <5000 Sq Feet
- 5,000-10,000 Sq Feet
- 20,001-40,000 Sq Feet
|
- Entry Fees & Ticket Sales
- Advertising
- Food & Beverages
- Merchandising
|
- Children’s Entertainment Centers (CECs)
- Children’s Edutainment Centers (CEDCs)
- Adult Entertainment Centers (AECs)
- Location-based VR Entertainment Centers (LBECs)
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope:
In this report, the Saudi Arabia Family
Entertainment Centers Market has been segmented into the following categories,
in addition to the industry trends which have also been detailed below:
- Saudi Arabia Family
Entertainment Centers Market, By Visitor Demographic:
o Young adults 19-25
o Adults >25
o Families with Children 0-9
o Families with Children 9-12
o Teenagers
- Saudi Arabia Family
Entertainment Centers Market, By Facility Size:
o 10,000-20,000
o >40,000 Sq Feet
o <5000 Sq Feet
o 5,000-10,000 Sq Feet
o 20,001-40,000 Sq Feet
- Saudi Arabia Family
Entertainment Centers Market, By Revenue Source:
o Entry Fees & Ticket
Sales
o Advertising
o Food & Beverages
o Merchandising
- Saudi Arabia Family Entertainment
Centers Market, By
Type:
o Children’s Entertainment
Centers (CECs)
o Children’s Edutainment
Centers (CEDCs)
o Adult Entertainment Centers
(AECs)
o Location-based VR
Entertainment Centers (LBECs)
- Saudi Arabia Family
Entertainment Centers Market, By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Family Entertainment Centers Market.
Available Customizations:
Saudi Arabia Family Entertainment Centers Market
report with the given market data, TechSci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Family Entertainment Centers Market is
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report or want to confirm the date of release, please contact us at [email protected]