Saudi Arabia Raises Film Production Rebate to 60%

Saudi Arabia announced at Cannes 2026 that it is raising its film and TV production rebate from 40% to 60%, administered by the Saudi Film Commission. The increase comes with a restructured disbursement process and clearer government approval pathways. The announcement was made by Saudi Film Commission CEO Abdullah bin Nasser Al-Qahtani.

Al-Qahtani framed the move as a competitive statement: "We want to be not just the most generous incentive, but also the most agile one".

From 40% to 60%

The Saudi Film Commission introduced its original production rebate at 40% in 2022, an aggressive entry into the international incentive market for a country that had only lifted its cinema ban in late 2017. The new 60% rate is the headline number, but the accompanying changes to disbursement timelines and approvals may matter as much. Productions have historically cited slow payment cycles as a deterrent even with high headline rebate rates.

Rasha AlEmam, CEO of Yellow Camel Studios, is among the industry voices engaged with the Saudi Film Commission on the updated program. The streamlined structure is intended to reduce the administrative friction that has slowed uptake among international productions considering Saudi Arabia as a primary location.

AlUla and the First Hollywood Feature

Saudi Arabia's most internationally promoted filming location is AlUla, a region of ancient oases and sandstone canyons in the country's northwest. In January 2026, "Chasing Red" completed production there, the first Hollywood film shot entirely in Saudi Arabia. The film stars Madelaine Petsch and Gavin Casalegno.

The completion of a Hollywood feature in the country is a significant proof of concept for the Saudi Film Commission's pitch to international studios and streamers. Permits, logistics, and local crew had to be in place for the production to operate, and "Chasing Red" demonstrated that they were.

A Film Industry Built in Under a Decade

Saudi Arabia lifted its cinema ban in late 2017. In the years since, it has established the Red Sea International Film Festival in Jeddah as one of the region's primary showcase events, built the Saudi Film Commission as a functioning regulatory and promotional body, and now competes directly with established European and Asia-Pacific production incentive markets.

The 60% rate positions Saudi Arabia above most production incentive markets globally. The UK's film tax credit sits at 25%. Australia's location incentive for qualifying productions is 16.5%. France's international coproduction rebate runs to approximately 30%. Saudi Arabia's rate now exceeds all of them.

The Middle East region has been expanding its film industry investment in parallel. The UAE launched a $1 million AI Film Award to attract AI filmmaking talent to the region, and Saudi Arabia's rebate increase reflects the same strategic intent at a larger scale. Both countries are competing for the same pool of international productions that are now free to choose locations based on incentive structures rather than proximity to traditional studio infrastructure.

For context on how investment is reshaping the broader AI production landscape, the surge in AI studio funding in the US and UK is creating a class of production companies actively looking for favorable conditions to expand. A 60% rebate changes the cost calculus for any production that can justify Saudi Arabia as a location.

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Sources

Variety