The Cultural Development Fund is one of the channels for developing the cultural sector in the Kingdom of Saudi Arabia. It is one of the tools used to stimulate investment in the cultural sector, aiming to enhance efficiency and have a positive impact on the country's social and economic sectors. The Cultural Development Fund was established in 2021 as a legal entity with administrative and financial independence. It is organizationally affiliated with the National Development Fund, and its main headquarters is in Riyadh.
The Cultural Development Fund includes representing the Kingdom on regional and international levels before entities related to its fields of work. Additionally, it is responsible for signing agreements and memorandums of understanding relevant to its area of work internationally, as well as participating in various bodies and organizations.
The Cultural Development Fund works on implementing development programs based on various methods and mechanisms, all aimed at enhancing the cultural landscape, an integral aspect of the quality of life, and one of the Vision 2030 Realization Programs.
Cultural Development Fund system
The Cultural Development Fund enjoys complete freedom and authority to finance associations or entities operating in cultural fields and related services. It can also accept mortgages and guarantees of fulfillment. Additionally, it can invest funds to achieve the objectives set by the Board of Directors of the Cultural Development Fund, encourage investments in cultural sectors, and own and manage funds per the applicable rules. Additionally, it can provide guarantees to which it contributes or owns.
Cultural Development Fund goals
The objectives of the Cultural Development Fund are to provide the necessary support to private entities operating in cultural sectors, including institutions and associations. The fund also offers its advisory services to individuals and relevant entities involved in the cultural sector. Additionally, it works towards maximizing the positive impact of cultural sectors, achieving sustainable development, and fostering effective strategic partnerships.
Cultural Projects Incentive Program
It is considered one of the most prominent programs offered by the Fund, which is the first program of the Cultural Development Fund in partnership with the Quality of Life Program with an allocation of SAR181 million. It aims to provide the necessary financial support and incentives for qualified cultural sector projects to enable them to start their business or support their expansion and improve the quality of their services and outputs. The program targets private sector entities, associations, and non-profit institutions operating in the cultural sector or providing supportive services to it.
Film Sector Financing Program
On February 2, 2022, the Cultural Development Fund announced the Film Sector Financing Program, which aims to support local visual content and the comprehensive development of the film sector in the Kingdom, with allocations estimated at SAR879 million. The Film Sector Financing Program is one of the initiatives under the IGNITE Digital Content Program, which aims to enhance digital content in the Kingdom and promote the overall development of the cultural sector, including the film sector specifically.
Through this program, the Cultural Development Fund aims to support a vibrant and sustainable film industry. It offers financial packages to support the development, production, and distribution of films and series. The program also aims to support and strengthen the infrastructure and leaders in the private sector of the film industry. The financing packages target production and distribution companies and all private sector entities operating in the film industry to enhance the competitiveness of the sector, as 70 percent of the budget will be allocated for content development, production, and distribution, and 30 percent will be dedicated to developing the infrastructure of the film sector.
Cultural Development Fund and Guarantees Product
The guarantees product is one of the financing products provided by the Cultural Fund in partnership with several partners from the financial sector to stimulate the financing of micro, small, and medium enterprises in the cultural sector. The product provides long and short-term financing for entities operating in the sector.
Cultural Development Fund and National Cultural Strategy
The Cultural Development Fund supports the sixteen cultural sectors identified within the National Cultural Strategy through developmental programs with various financing mechanisms designed to empower the cultural sector in different fields. These sectors include heritage, museums, cultural and archaeological sites, theater and performing arts, festivals and cultural events, books and publishing, architecture and design arts, natural heritage, films, fashion, language and translation, culinary arts, literature, libraries, visual arts, and music. Additionally, the Cultural Development Fund will provide non-financial advisory services to all entities and individuals operating in various cultural fields.
Funding Sources of the Cultural Development Fund
The Cultural Development Fund operates with an independent annual operational budget that aligns with the state's fiscal year. Its capital is currently estimated at SAR500 million, but the Council of Ministers has the authority to adjust it based on the recommendation of the Cultural Development Fund's Board of Directors. The fund receives support from the government to facilitate its lending and financing activities. In addition to cash flows from loans and returns from investments, it also earns financial compensation for services and work provided that are subject to financial remuneration. The Cultural Development Fund welcomes grants, donations, endowments, bequests, Waqf (inalienable charitable endowment) revenues, and other approved channels in accordance with applicable regulations.
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