Saudi Film Commission Announces Generous Incentives, Boosting Local Spending to 60% The Saudi Film Commission has introduced a new incentive program that makes the Kingdom's incentives among the most generous in the world, with a 60 percent ceiling for eligible local spending. The program aims to streamline the operating environment for production companies and improve cash-flow predictability. The changes come amid a difficult time for the Saudi tourism and hospitality sector, with the 2026 war between the U.S./Israel and Iran affecting air travel and inbound tourism. The Saudi Film Commission also unveiled faster disbursement processes and a new package of financing solutions developed in partnership with the Cultural Development Fund. film productions shooting in the Kingdom, raising the topline figure to as much as 60 percent of eligible local spending, the Saudi Film Commission announced Friday at the Cannes Film Festival. The new scheme makes Saudi Arabia's incentives among the most generous in the world. The revised incentive program, unveiled by commission CEO Abdullah bin Nasser Al-Qahtani during the Marché du Film, also introduces faster disbursement processes and a new package of financing solutions developed in partnership with the Cultural Development Fund, the state-backed agency that channels capital into Saudi cultural projects.The commission framed the changes as part of an effort to streamline the operating environment for production companies and improve cash-flow predictability across the shooting cycle — moves that address early gripes some global producers had voiced about the Kingdom's nascent film support programs. James Franco Is Back in Cannes, Says Making His New Film 'Foster' Felt Like 'Old-Fashioned L.A.' The renewed film push comes amid a difficult time for the Saudi tourism and hospitality sector. The 2026 war between the U.S./Israel and Iran, which broke out in late February, has battered air travel and inbound tourism across the Gulf. Saudi Arabia, which had been growing inbound tourism faster than any of its neighbors since opening to tourist visitors in 2019, has been among the most exposed to the slowdown.By concentrating fresh state financing on the film sector — a key creative pillar of Crown Prince Mohammed bin Salman's Vision 2030 economic diversification drive — Riyadh is signaling that it intends to keep building out its content-production infrastructure despite the broader regional headwinds. The decision nonetheless comes at a moment when international producers are scrutinizing Middle East shoots more carefully than ever.The announcement represents an extension of the Kingdom's vision to build a sustainable film sector rooted in empowerment and partnership. Recent regulatory work, including the launch of a financial audit and disbursement procedures guide, was aimed at giving filmmakers greater clarity. Cultural Development Fund CEO Majed bin Abdulmohsen Al-Hugail said the new financing tie-in are a response to shifting industry expectations.Through this program, we aim to provide a more efficient and flexible experience that meets the needs of projects at various stages and strengthens the Kingdom's position as a reliable partner for international productions. The 60 percent ceiling positions Saudi Arabia at the very top of the global film incentive landscape, well above the major European national rebates (which typically cap between 25 and 40 percent) and the most aggressive recent programs out of Asia-Pacific, including Thailand's revised scheme and Australia's expanded location offset.But the Saudi Film Commission did not disclose the program's total budget or annual cap for the revised rebate — figures that international producers will be keen to weigh to determine just how bankable Saudi's new scheme actually is. The Hollywood Reporter is a part of Penske Media Corporation. © 2026 The Hollywood Reporter, LLC. All Rights Reserved