Thursday, 5 October 2023

#SaudiArabia pours millions into digital theme park start-up | Financial Times

Saudi Arabia pours millions into digital theme park start-up | Financial Times

Saudi Arabia is investing in a three-year-old start-up that designs digital theme parks within shopping centres, in the Gulf kingdom’s latest move to break into the technology and leisure industries.

Riyadh Season, a government-backed entertainment initiative under the auspices of the sovereign wealth fund, has provided most of the $55mn of debt and equity raised by HyperSpace. Riyadh Season is led by Turki al-Sheikh, who chairs the General Entertainment Authority. 

Shopping centres must find that “cool factor” to draw consumers in, Alexander Heller, co-founder and chief executive of HyperSpace, told the Financial Times. “Today, within that ecosystem, you’re looking at something that’s much more experience driven.” 

Saudi Arabia is seeking to reduce its dependence on oil revenues and is investing in other areas, such as electric vehicle production, sports teams and tourism. It has set out a target to become a global gaming hub, and this year spent $4.9bn to acquire the US-based games developer Scopely. 

The country is spending heavily on deals to pursue these goals, but there are questions about whether it can attract foreigners in large numbers. Saudi Arabia, which is not a traditional tourism destination, wants to lure 100mn visitors annually by the end of the decade.

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