The challenges faced by filmmakers in securing financing from Saudi banks were a key topic of discussion at this week’s Saudi Film Confex panel discussion on film investment.
Faisal Darwish, head of institutional banking at Saudi Fransi Bank (BSF), acknowledged that it is difficult for the film and banking sectors to align their interests.
The Saudi film industry has been developing at breakneck speed since 2018, when the country’s first movie theaters began opening after a 35-year ban. However, for local and international filmmakers wanting to shoot films in this country, accessing film financing from traditional banks often proves difficult.
Darwish pointed out that Saudi Arabia’s Vision 2030 initiative identified culture and entertainment as strategic growth areas for Saudi Arabia. “Therefore, it is our role as a bank to support these initiatives and support their development.”
but Darwish noted that film financing “doesn’t really fit into the typical corporate financing structure” that banks are used to.
“It’s not easy. It’s difficult,” he said. “We have to think differently. We have to be a little more creative. We look at things like cash flow, we want revenue. It’s a completely different risk profile. So I think it’s going to take some work to build that. We have to look at whether there’s a streaming deal behind it, whether there’s a distribution deal behind it, things like that. That kind of gives us peace of mind. The more we’re exposed to this business, the more we understand this business.”
Darwish said one way filmmakers can reassure risk-averse banks is proof of future returns. Presales and distribution agreements “give you peace of mind knowing you’ll have money coming in that can pay the interest and, ultimately, the principal (loan).”
Darwish said banks like BSF work closely with and help guide Saudi organizations such as the Red Sea Fund, the Saudi Film Commission, and the Saudi Cultural Development Fund (CDF).
Speaking on the same panel, Emad Eskander, president of the Red Sea Film Fund, noted the importance of support to enable local, Middle Eastern and African projects. Red Sea supported five films screened at this year’s Venice Film Festival, including Saudi director Shahad Amin’s acclaimed drama Hijra.
Eskander said one of the main impacts of the Red Sea funding is to give confidence to the film production team. “This is human behavior. Once you like your idea and I put money into your idea, you feel more confident. This is serious and I can see this happening.”
Eskander said the support of a well-known foundation with a track record of successful international festivals, such as Red Sea, also lends credibility to the project and helps secure further funding.
When asked what draws investors to a particular film project, Alex Walton, co-head of WME Independent, said in his experience that “more than 80% of people are probably looking for something they can get into.” “Sometimes they get carried away by the revenue potential and the profit potential, but almost every investor we work with has different tastes and is trying to find a story that fits their tastes and suits their interests.”
Data becomes even more important when selling movies, primarily when dealing with large streamers. “They’re not going to make decisions without data,” Walton said.
Saudi Film Confex will be held in Riyadh from October 22nd to 25th.
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