Saudi Arabia is diversifying its investments beyond oil by supporting a three-year-old startup, HyperSpace, specializing in creating digital theme parks within shopping centers as the Kingdom plans to attract over 100 million visitors annually by 2030. Riyadh Season, a government-backed entertainment initiative linked to the sovereign wealth fund, has contributed the majority of the $55 million in funding for HyperSpace.
Their goal is to enhance the appeal of shopping centers and attract consumers with immersive experiences.
As part of Saudi Arabia’s broader strategy to reduce reliance on oil, they are venturing into various sectors, including electric vehicle production, music, nightlife, sports, tourism, and gaming.
Saudi Arabia is making substantial investments in its music industry, with the newly-formed Saudi Music Commission at the forefront. CEO Paul Pacifico revealed this initiative’s aim to unlock the creative and commercial potential of music in the country. The Kingdom has undergone a significant shift, moving from a past prohibition on music to promoting public performances and investing heavily in the sector.
After last Novembers history making Soundstorm Music Festival that attracted 773,000 party goers in a dessert on the outskirts of Riyadh, the city has seen more than $64 billion in entertainment investments with much of that going towards the promotion of live music.
DJ Khaled parents are Palestinian immigrants to the US, was one of the headliners at MDLBEAST’s Soundstorm festival in Riyadh. Also there was Bruno Mars, Post Malone, Nigerian Afro-pop star Wizkid and other leading DJs Marshmello, David Guetta, DJ Snake, Carl Cox and Solomun.
Khaled performed to more than 150,000 revellers, “I flew 16 hours to be here with my people,” he said from the stage. “So tonight will not go down, but up, in history.” He ended the trip the the Kingdom with a trip to Mecca with Mike Tyson.
The next Soundstorm on December 15 this year will see Pharrell, J-Balvin, David Guetta and more headlining the three day event.
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The move onto entertainment is also is seen as a potential opportunity for Saudi artists and the global music industry, as it requires experienced professionals, technology, and music education to thrive. The 2023 All That Matters conference in Singapore showcased these developments and featured discussions on various aspects of the entertainment industry.
Representatives from all the major music labels that were present at (ATM) in Singapore included CEO of Primary Wave Larry Mestel, cofounder and co-CEO of Beatdapp Andrew Batey, CEO of Chartmetric Sung Cho, and representatives of other major companies like TikTok, Venice Music, Bandwagon, WMG, UMG, SME, Believe, YouTube, Spotify, Meta, Google, Luminate, Netflix, and many others.
These major companies are pushing for Saudi to become a global gaming hub and are investing significantly in these pursuits, although the challenge remains in attracting a substantial number of foreign visitors to the country.
HyperSpace’s innovative approach focuses on blending digital and physical entertainment to create immersive experiences for consumers. The company has already seen success in Dubai, where its 40,000-square-foot park has drawn nearly half a million visitors, each paying $34 for the experience. With this successful model in mind, HyperSpace plans to expand its operations both within Saudi Arabia and internationally, with a strong focus on the United States.
This aligns with Saudi Arabia’s goal of becoming global gaming hub. To achieve this vision, they have made substantial investments, such as a $4.9 billion acquisition of the US-based game developer Scopely.
As part of this effort, partnering with HyperSpace represents a strategic move to enhance the appeal of shopping malls, which have faced challenges due to the growing trend of online shopping.
In addition to the financial support from Riyadh Season, HyperSpace’s latest funding round was led by Galaxy Interactive, a New York-based venture capital firm focused on the gaming industry. This support underscores the growing global interest in the digital entertainment and location-based entertainment sector.
HyperSpace is already making concrete plans to expand its presence, with the launch of House of Hype in Riyadh slated for November and additional park openings in Dubai in the coming months.
