JEDDAH: The General Entertainment Authority (GEA) signed a memorandum of understanding with the Social Development Bank (SDB), to provide soft financing amounting to a total of SR500 million ($133 million).

The fund will provide quality investment opportunities to contribute to the growth and sustainability of the entertainment sector.

It will also raise the proportion of local entertainment content in line with the objectives of Saudi Vision 2030.

According to the MoU — signed at the GEA’s headquarters in Riyadh by its CEO Faisal Bafarat and SDB CEO Ibrahim bin Hamad Al-Rashed — the two parties will cooperate through financial support for entertainment activities, harmonization with applicable laws and regulations, and establishing credit mechanisms, agreements and performance standards.

The GEA aims to activate the soft financing product by supporting at least 50 projects throughout the period of the MoU.

The GEA qualifies quality entertainment projects and conforms them with the conditions and standards approved by both parties. 

It also supports partners with market data and the rehabilitation of companies wishing to obtain financing, in addition to providing incentive packages for entertainment projects.

The SDB will also support and finance projects through the Ofoq program, which provides financing for small enterprises amounting to SR10 million. This latest financing project comes as part of a series of agreements with the GEA that embody the role of the bank as a source of economic empowerment with a developmental impact.

The SDB will aim to create and qualify projects for Saudi youth in the entertainment sector, in addition to providing specialized capacity-building programs for entrepreneurs in the sector and providing advice for emerging enterprises.