المنتدى الدولى للصحافة والإعلام

Jamal Bannon

At the heart of the historic transformation taking place in the Kingdom of Saudi Arabia, the National Privatization Strategy emerges as a tool that aims not only to diversify sources of income, but also to re-engineer the entire system of government operations. Including the media sector as one of the 18 targeted sectors represents a strategic decision that goes beyond the traditional media dimension and enters the core of the knowledge economy. Privatizing the media is not merely the sale of assets or the transfer of tasks; rather, it is a process of “liberating” this sector from bureaucratic constraints and the complexities of operational systems that have long hindered its ability to compete and innovate, with the aim of transforming it into an economic engine capable of injecting billions into the gross domestic product.

Addressing bureaucracy is the greatest and most direct benefit of the privatization process. Media institutions under traditional government management often collide with lengthy documentation cycles, rigid employment systems, and regulations that do not keep pace with the rapid development of digital technology. Privatization therefore works to “flatten” organizational structures, simplify procedures, and shift the system toward operating according to strict Key Performance Indicators (KPIs) that focus on results rather than routine processes. This procedural simplification is the real magnet for attracting local and foreign investment. Investors are not only looking for a promising market, but also for ease of doing business and speed of decision-making. Privatization of the media sector provides this by creating flexible entities capable of seizing investment opportunities at the right moment.

If we look at international experiences, we find that eliminating bureaucracy was the key to major successes. In the United Kingdom, the experience of British Telecom (BT) and related broadcasting sectors transformed large and sluggish entities into agile companies capable of competing globally, leading to a surge in technological innovation in the media field. In South Korea, separating government administration from content production unleashed private companies whose flexibility and speed enabled them to conquer the world with the “Korean Wave,” multiplying investment returns in the sector to the point that it became a fundamental pillar of the Korean economy. These experiences prove that when the private sector is freed from complex legislative restrictions, it excels at creating unprecedented profit models.

However, the path toward privatization faces challenges that cannot be ignored. The first is the challenge of human transformation, as privatization requires a radical change in work culture among employees, shifting from the mentality of a guaranteed job to the mentality of productivity and creativity. The second challenge is regulation and oversight; when the state relinquishes its role as operator, it must strengthen its role as a strong regulator that prevents monopoly and ensures the quality of content and its alignment with national values without suffocating creativity. Third, there is intense global competition with major digital streaming platforms that possess enormous budgets and vast data resources, which requires privatized Saudi media companies to start where others have already reached technologically and artistically.

In terms of investment opportunities, the privatized Saudi media sector opens doors that were previously closed, from the development of smart media production cities to investment in metaverse and augmented reality technologies, all the way to the film industry, which is now the fastest growing in the region. Investors now have the opportunity to build long-term partnerships in producing local content and exporting it, as well as developing advertising platforms based on big data—fields that generate very high investment returns compared with traditional sectors.

Overall, the numbers and future prospects appear extremely promising. The National Center for Privatization aims to increase the volume of capital investments from the private sector to about 240 billion riyals by 2030 across various sectors, and the media sector will have a significant share of these investments. Projections indicate that the contribution of the media and entertainment sector to the gross domestic product could reach 47 billion riyals, with the ability to provide thousands of high-quality jobs requiring advanced skills in production, technology, and financial analysis. Media is not being privatized merely for financial savings, but to build an industry worthy of the Kingdom’s global standing—an industry that moves at the speed of light, free from bureaucratic constraints and powered by smart investment.