Communication Author:EqualOcean News Editor:Xinyu Zhang Sep 04, 2024 09:23 PM (GMT+8)

In most countries, visiting nightclubs has become a common pastime for many young people, and such venues can easily be found in any corner of the city. However, you would never expect that the following scene takes place in Riyadh, Saudi Arabia.

沙特酒吧

Non-alcoholic nightclub, sober revelry

This nightclub, called Beast House, is located in the Jax District, a northwestern area of Riyadh that was once an abandoned industrial zone. It has now transformed into a vibrant community favored by artists and creative professionals, a place they refer to as the "beginning of a new life" (similar to Beijing's 798 Art District).

When you are engrossed in the atmosphere and wish to order a cocktail to relieve a whole day of fatigue, you will regret to find that only mocktails (non-alcoholic cocktails) are available. Beast House does not serve alcohol, as it is still within Saudi Arabia, a country with strict Islamic laws. Additionally, entry to the nightclub requires adherence to various other rules, such as being at least 21 years old and meeting strict dress codes. The official website humorously and straightforwardly states: "We don't impose a dress code, per se. But, like... don't turn up in your pajamas or shorts, you know? Think more 'powerhouse professional' and less 'poolside party'."

Source:Instagram @_beasthouse

If you are concerned about the place being overcrowded, you would be mistaken. As the only legal nightclub in Saudi Arabia, the high entry barriers deter many people. Beast House operates on a membership basis with multiple tiers, each corresponding to different membership annual fees. The high costs ensure that the clientele are either wealthy or influential. Local members must pay an initial fee of 3,000 riyals (1 Riyal is roughly equivalent to 1.9 CNY) plus an annual fee of 6,000 riyals, totaling 9,000 riyals. The highest level of membership costs 13,500 riyals. In comparison, the average monthly salary in Saudi Arabia in 2023 is 9,872 riyals for men and 6,820 riyals for women. 

Source:Beast House official website

A Saudi female DJ mentioned in a DW Documentary interview: "Parties have always existed, but they were underground because such activities were illegal. Once someone is discovered, they will be arrested." Despite numerous restrictions, young people continue to enthusiastically join the revelry at Beast House. Compared to driving several hours to Bahrain, often referred to as "Saudi Arabia's backyard", they can openly join the party right at their doorstep.

However, the existence of Beast House has sparked two main types of opposition in public opinion. One group comprises devout conservatives. Many comments under related TikTok videos express "insult" ,"fake news" and "Astagfirullah (seek forgiveness from Allah)" as devout Muslims genuinely resist this "deviant" existence. Another group questions the motives behind it, suggesting that the government's announcement of the opening of the entertainment industry primarily aims to boost the economy and deflect criticism of human rights violations, rather than genuinely intending to liberate national rights.

Source:Tiktok

In conclusion, the sweeping secular reforms championed by Crown Prince Mohammed bin Salman, despite their restrictions, ultimately yield more benefits than drawbacks for both economic development and the daily lives of citizens. The liberation of taboos requires a lengthy transition, and the most challenging aspect is overcoming entrenched mindsets. "Rome was not built in a day", and the same applies to Saudi Arabia.

Building the foundation of Saudi music

Every evening, Beast House attracts a large number of talented musicians, singers, and DJs from various regions to perform. Some travel from around the world specifically to this venue, although the majority of performers are local musicians. Previously, the underdeveloped entertainment industry left these talented young individuals with few opportunities, forcing them to seek their dreams abroad. Now, they no longer need to leave their homeland to pursue their passions. 

Source:Instagram @_beasthouse、Tiktok @shamma.media

Beast House, which opened at the end of 2023, was not merely established as a simple entertainment venue but aims to serve a broad range of music creators and enthusiasts. It provides professional facilities and spaces to support the development of the domestic music industry. The official website of Beast House lists the venue's facilities, which include a performance stage that can accommodate 400 spectators, a recording studio, a production room, an audio studio, a radio station, as well as a terrace and restaurant for guests to relax and unwind. 

Source:Beast House official website

The company behind Beast House is MDLBeast, which was established in 2016 with investment from Saudi Arabia's Public Investment Fund (PIF) and is chaired by Crown Prince Mohammed bin Salman. Since its inception, MDLBeast has focused on the domestic music industry while connecting with international markets, organizing world-class events such as the SOUNDSTORM music festival—the largest of its kind in the Middle East. The festival attracted 400,000 people when it was first held in 2019, and will continue to be held in December 2024. Eminem, known as the "Rap God", has already announced his participation, generating significant global attention and discussion online.

Source:Instagram @mdlbeast.soundstorm

''The Vision 2030'' is driving the growth of Saudi Arabia's entertainment industry

The music industry has rapidly developed from nothing, with Saudi Arabia's Vision 2030 serving as the growth engine behind its swift expansion. In April 2016, Saudi Arabia introduced Vision 2030; in May of the same year, the General Entertainment Authority (GEA) was established with the aim of "regulating and developing the entertainment sector, enriching entertainment options, and supporting the national economy." Driven by this vision, the Saudi entertainment industry has undergone a significant transformation, positioning itself as a global entertainment center and emphasizing the importance of culture and entertainment in enhancing quality of life.

According to Mordor Intelligence, the market size of the Saudi entertainment industry is expected to reach $2.55 billion by 2024, growing at a compound annual growth rate (CAGR) of 10.44%, and is projected to reach $4.20 billion by 2029. In 2023, Saudi Arabia's GDP reached $1 trillion, with the physical entertainment sector currently accounting for only 0.2%. Under Vision 2030, the Saudi entertainment industry aims to contribute 4.2% to GDP and create 450,000 jobs. By comparison, the entertainment sector in the United States, a global entertainment giant, accounts for only 4.5% of its GDP. While Saudi Arabia is ambitious, achieving these goals will require exponential growth momentum, necessitating continued top-level support.

According to analysis by Redseer, spending on leisure and entertainment in Saudi Arabia is growing and shows strong upward potential, with expectations to reach global average levels in the future. Consumers’ demand for experiences has significantly increased compared to traditional shopping and product-centered activities. Surveys reveal that the vast majority of respondents express a strong intention to increase spending on experiences, which clearly surpasses spending on products and assets. 

Meeting the demand for experiences requires matching soft power, to enhance soft power, it's essential to first have a strong infrastructure foundation. Currently, Saudi Arabia's entertainment industry infrastructure is relatively weak. However, in recent years, significant progress has been made on major projects, moving from the concept phase to the construction phase, often involving Chinese "infrastructure giants". For instance, the Qiddiya entertainment city plans to build several large amusement parks, sports stadiums, and esports venues. Local El-Seif Engineering and Construction and China State Construction Engineering Corporation (CSCEC) have formed a joint venture and secured an esports venue contract worth approximately 2 billion riyals. 

What opportunities exist for Chinese companies entering the Saudi entertainment market? EqualOcean provides several insights:

1. In infrastructure construction, not only State-owned enterprises can undertake projects; there is also a substantial demand for construction materials and soft furnishings.

2. With a large influx of future tourists, there is a need to preemptively invest in the hotel industry, tourism services, and related sectors.

3. There is a scarcity of cultural and entertainment content; localized film and short drama markets are underserved. Chinese fantasy dramas and "The Wandering Earth" have received positive responses locally, indicating market preferences.

4. It is crucial to recognize that the primary market audience is local residents and to focus on providing localized services.

Before 2018, about 80% of Saudi residents' entertainment activities took place abroad. This indicates that the potential of the domestic entertainment market is enormous, and once policies allow, it will unleash significant market dividends.