Saudi Entertainment Authority Announces 1st Entertainment Business Accelerator

Saudi Arabia aims to make entertainment a vital sector in diversifying sources of income (Asharq Al-Awsat)
Saudi Arabia aims to make entertainment a vital sector in diversifying sources of income (Asharq Al-Awsat)
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Saudi Entertainment Authority Announces 1st Entertainment Business Accelerator

Saudi Arabia aims to make entertainment a vital sector in diversifying sources of income (Asharq Al-Awsat)
Saudi Arabia aims to make entertainment a vital sector in diversifying sources of income (Asharq Al-Awsat)

The Saudi General Entertainment Authority launched the Entertainment Business Accelerator program to encourage entrepreneurs interested in the rapidly growing sector.

Experts told Asharq Al-Awsat that the Kingdom is experiencing an unprecedented leap in entertainment, which requires qualifying the most significant number of enterprises to cope with the high demand in the current and upcoming phases.

The 12-week program will operate in two phases, aiming to provide entrepreneurs with guidance and training and link them with experts and consultants specialized in project development and a network of investors.

It provides weekly training workshops, and individual advisory sessions between entrepreneurs and specialized consultants will be provided as part of the program.

Experts will monitor participants' performance, support them in developing their projects, and help them prepare for the advanced investment rounds, where they will meet mentors weekly to expand their businesses.

The experts explained that entertainment projects in Saudi Arabia have recently proven successful in diversifying sources of income and increasing contribution to the gross domestic product.

They create job opportunities for male and female citizens, confirming the importance of providing and qualifying national companies capable of absorbing the size of mega projects and events to meet the government's ambition to promote the sector.

The program aligns with Vision 2030 in attracting 100 million visitors annually.

The Chairman of the Entertainment National Committee in the Federation of Saudi Chambers, al-Walid al-Baltan, explained that launching a program to accelerate and boost local competencies coincides with the upcoming projects that the Kingdom will witness in the entertainment sector.

Baltan told Asharq Al-Awsat that the business accelerator program would enable the owners of emerging projects to expand their business in the entertainment and compete to provide the best quality of services in line with the government's ambition.

He said it also creates multiple jobs for Saudis, adding that it diversifies sources of income and boosts the sector's contribution to the gross domestic product.

Managing Director of al-Hokair Tourism and Development Group Majed al-Hokair explained to Asharq Al-Awsat that the Kingdom is witnessing a quantum leap in entertainment, increasing the number of visitors from neighboring countries after Saudis used to travel to these countries for recreation.

Hokair indicated that the business accelerator launched by the Authority would enable small and medium enterprises and entrepreneurs to expand their businesses by linking them with the largest network of investors in several mega projects in the Kingdom.

The Entertainment Business Accelerator program accepts applications that end in March. The program would continue until June, targeting seven sectors: cities and centers, organizing events and crowd control, operating facilities, technical solutions, managing and developing technical talents, ticketing, and supporting services.

"Riyadh Calendar" welcomed 14 million visitors in all its regions, hosting various events of various interests and entertainment.

Visitors to Riyadh Calendar increased with its activities, including many aspects of entertainment at the local, regional, and global levels, forming a new and innovative industry to enjoy throughout the capital.

Riyadh is hosting exceptional events, most notably "The Earth Voice Night," which was held in February with the participation of top Arab artists.



Air France-KLM to Take Majority Stake in Scandinavian Airline SAS

(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
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Air France-KLM to Take Majority Stake in Scandinavian Airline SAS

(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)

Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5%, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals.

The Franco-Dutch airline group said on Friday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholders Castlelake and Lind Invest.

The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Reuters quoted Air France-KLM as saying.

The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings (EBITDA) and net debt, the company said. It declined to give details on those metrics.

Air France-KLM expects to generate "three-digit million" euros in synergies from raising its SAS stake, Air France-KLM finance chief Steven Zaat told analysts on a call.

Zaat said the deal would be funded from cash or a "plain vanilla bond" and would not impact the drive to reduce the group's hybrid debt. "We have ample room for it," he said.

Air France-KLM shares were flat in early trading.

JPMorgan analysts said there were reasons to be positive about the deal.

"SAS offers deeper access to a GDP-rich region in Scandinavia, there will now be an opportunity to unlock cost synergies as SAS becomes a subsidiary of the group," they said in a note, adding that "industry consolidation should also be viewed positively for the whole sector, even if not game-changing in terms of size."

INDUSTRY CONSOLIDATION

SAS welcomed Air France-KLM's announcement.

"European consolidation had to happen further, and we're very happy to be part of that," SAS CEO Anko van der Werff told Danish broadcaster TV2.

"In the current setup where Air France-KLM is a 19.9% shareholder, they're still a competitor," he said. "With the new stake, going above 50%, we can really tap into all of those synergies and offer those benefits to customers."

SAS said it would continue to invest in its fleet and network.

In 2023, Air France-KLM said it would invest about $144.5 million for its initial SAS stake, boosting its presence in Sweden, Denmark and Norway with the option to become a controlling shareholder after a minimum of two years, subject to conditions.

SAS exited from Chapter 11 bankruptcy protection in August last year.

The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, Air France-KLM said in a statement.

"Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline's potential will continue to grow through deeper integration within the Air France-KLM Group," said Air France-KLM CEO Ben Smith.

The deal comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with US and Middle Eastern rivals.

Earlier this year, Germany's Lufthansa bought a 41% stake in Italy's ITA Airways and a stake in Air Baltic. The Portuguese government is looking to privatize its national carrier TAP.

Lufthansa and Air France are also in talks about buying a stake in Spain's Air Europa.
SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros ($4.8 billion).

Air France-KLM group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4% stake in SAS and its seats on the board.