Invest Qatar, Media City Highlight FDI Role in Driving Growth of Digital Media Industry

Doha: Investment Promotion Agency Qatar (Invest Qatar) and Media City Qatar highlighted the role of foreign direct investment (FDI) in driving the growth of the digital media industry, in parallel with the importance that the GCC countries (the State of Qatar and the Kingdom of Saudi Arabia as a model) have given in their national visions for 2030 to cultural and media development and building a sustainable media system through investment in modern media infrastructure and developing talents. In this context, Invest Qatar and the Media City indicated in a joint article that the communications and media sector ranked third in new investments between 2019 and 2023, confirming its importance among all other FDI sectors, noting that the distinguished geographical location of the GCC countries, which links the East and the West, and their possession of a world-class infrastructure, including, for example, advanced media cities and advanced communications networks, enables them to provide a dynamic media environme nt for media companies and investors alike. CEO of Invest Qatar Sheikh Ali Alwaleed Al-Thani and Chief Executive Officer of Media City Qatar Jassim Mohamed Al Khori said in the joint article that the media landscape in the Middle East and North Africa (MENA) region, particularly in the digital and streaming sectors, has been experiencing significant growth. Currently, GCC consumers have the second highest number of VOD services per person on average in the world, according to the Oliver Wyman Global Survey, while 5G is projected to account for 73 percent of all mobile subscriptions in the GCC countries by the end of 2026, according to the Ericsson Mobility Report. Driven by increasing internet penetration, a young and tech-savvy population and the rising popularity of digital entertainment platforms, the region dominated streaming revenues with a 98.4% share of the market, according to the IFPI Global Music Report. This is supported by countries like Qatar establishing partnerships with global media entiti es like Snap Inc, Amazon Ads, and TikTok. FDI is a driving force behind the growth of the digital media industry, fuelling innovation and expanding opportunities across various segments. From digital publishing and audio streaming to social media, the influx of international investments is reshaping the media landscape. The GCC region, with its strategic position and ambitious visions for cultural and media development, stands out as a key player in this evolving market. As technological advancements continue to shape the future of digital media, both investors and media companies are well-positioned to capitalize on emerging opportunities and drive further growth in the sector. Qatar and Saudi Arabia have also outlined the importance of cultural and media development in their 2030 visions. Saudi Vision 2030 outlines key initiatives to attract FDI and develop its media and entertainment sectors, intending to increase household spending on entertainment and leisure from 2.9 percent to 6 percent. Meanwhile, Q atar National Vision 2030 aims to build a sustainable media ecosystem by investing in state-of-the-art media infrastructure and fostering talent. Media City Qatar, a key enabler of the media industry in the country, is an emerging media hub and incubator for companies, entrepreneurs, innovators and creative talent. It drives initiatives that bridge cultural gaps and foster international cooperation, all centered in Doha. Media City Qatar's three-part mandate covers regulation, development, and investment - including providing business incubation, permits, licenses and modern production facilities. The article anticipated that these initiatives along with development programs by educational institutions to upskill labour and the continued growth of media organizations like Al Jazeera and BeIN Sports are expected to yield projected market growth of 10.21 percent from 2024 to 2029, according to Statista Market Insights. The article said that FDI has emerged as a pivotal catalyst for growth in the global digita l media industry. By bringing substantial capital, cutting-edge expertise and advanced technology to host countries, FDI has significantly transformed the communications and media landscape. According to fDi Intelligence, the communications and media sector ranked third in greenfield investments between 2019 and 2023, underscoring its importance among all FDI sectors. This influx of investment not only fuels innovation but also fosters economic development, creating new opportunities and enhancing the competitive edge of media companies worldwide in key segments. Source: Qatar News Agency