The Elephant in the Room: Film Financing in Select Emerging Markets

Film and television financing is extremely important in the Arab market because it determines not only whether and how producers can produce films or television shows, but also because of the promise and potential of the Arab film market. Film financing enables producers to increase the quality, distribution, and marketing of their films, thereby the very ability to “reach” audiences regionally and internationally. In such a promising and growing region as the Arab market, film financing is assuming greater importance and the following is a framework.

Film and television production requires $millions that encompass development, pre-production, production, post-production, and marketing of the final product. In the Arab market and other emerging ones, such factors as the ones below affect and also necessitate film financing:

• Historical political conflicts

• Technology

• A majority young-adult population

• Politics

Several foundations or organizations in both the Arab countries and outside dispense grants, a good step forward, so the other step is private financing in the form of equity and others. Saudi Arabia has launched at least one financing fund.

Investment helps support sustainable production companies, studios, and film production infrastructure. Countries such as Saudi Arabia, the UAE, Egypt, Morocco, and Jordan have increasingly invested in their film sectors in different ways. But film and television financing remains indispensable: Without, no producer or studio can make any film or television episode. Some analysts anticipate that the media industry, if not the whole ecosystem, in Saudi Arabia can reach a level of activity and production output by 2030 where it can contribute up to 4.2% to the country’s economy; this would be through 450, 000 jobs, based on the figures from the Ministry of Investment in Saudi Arabia.  

Film financing gives Arab filmmakers opportunities to tell their own stories. This reduces dependence on foreign, especially Hollywood, cinema so helps support regional media and cultural representation. In the big picture, cinema is paramount to “soft power” and this is crucial now in the Arab-Western media and political nexus. Film financing is rapidly assuming tremendous importance in a region and market that needs it the utmost.

Film projects create both direct and indirect (or ancillary) jobs. Industry employment is the obvious and direct benefit. Ancillary benefits encompass indirect employment, such as catering, hospitality, and transportation—not to mention tourism, national identity, and cultural exposure and education. These are some of the very characteristics of soft power, national pride, new scripts, and other benefits. A robust film and television financing ecosystem also allows young Arab filmmakers to gain experience and build careers. The benefits are multiple.

Arab films or television series with even medium budgets can reach higher production and technical standards, making them more competitive in international festivals and / or markets. Successful films can also attract greater local or regional investment, if not also international investments and partnerships. At the most basic level, hefty film financing is an indispensable pillar of a self-sustaining media industry and ecosystem.

Financing can come from governments, private investors, production companies, broadcasters, telecommunication companies, film funds of course, and other entities. Co-productions or “runaway” productions allow Arab and other filmmakers to combine financial resources, gain experience, and have access to audiences in multiple countries. As an example, the United Arab Emirates supposedly has 30% of the Arab cinema market and Dubai and Morocco have been highly attractive filming locations. The UAE and Saudi Arabia have leading positions in the region in media profits.

Financing does not stop at production. Marketing, festival participation, theatrical distribution, and digital promotion also require financing. The Arab film market needs even more financing options and mechanisms because it is an “emerging markets.” Hefty financing, therefore, increases the chance that a film would actually reach audiences and generate any revenue. Therefore, film financing is increasingly becoming an industry necessity, not a luxury.

Film and television financing, thereby production, stimulates “ancillary” industries or sectors, such as tourism, hospitality, advertising, music, fashion, events, and technology. Medium- to high-budget productions can also encourage or necessitate on-location filming and contribute to a country’s cultural tourism, not to mention any co-financing cases and their contributions to an economy. So, film and television financing is a basis for financial, industry, and aesthetic independence and ideally growth.  

The Arab market has 300 million “consumers” but is politically fragmented, and individual countries have different levels of education attainment and travel. Each country also has its own political situation and priorities. Saudi Arabia and the United Arab Emirates are disproportionately wealthy, a major reason for their establishment of film financing in the $millions and launching several studios in which to shoot medium- to high-budget productions. Financing can also help producers by supporting regional distribution, co-productions, and partnerships with international companies.

Overall, film financing is a pillar of a sustainable cinema industry. It transforms creative ideas into commercial and cultural products, cultivates talent, expands infrastructure, and enables films from and / or about the region to compete in the global film market.

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