Saudi Arabia’s real estate market is expected to witness exponential growth as the Kingdom focuses on advancing its entertainment and tourism sectors, according to a new report released by global property advisor CBRE.

The report predicts that, fueled by public and private investments and as part of its efforts to reduce reliance on oil, the Saudi entertainment sector is expected to make important contributions to economic growth in 2019, and will generate 300,000 jobs by 2020.

The report also states that the Public Investment Fund (PIF) will be driving growth in the sector; however 40 percent of the entertainment plans are forecast to be funded by the private sector.

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Planned reforms to the country’s laws including those on Public Private Partnerships (PPPs) as well as those that greatly reduce the time it takes to source business visas will be instrumental in further growing the entertainment sector, according to the report.

The lifting of the ban on cinemas will also be a key driver for real estate growth. The report acknowledges that tailoring projects to accommodate the requirements of operators with the aim of differentiating their projects will be key to ensuring consistent footfall across retail centers and large-scale entertainment destinations.

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Once entertainment hubs have been established, the report predicts that there will be an increase in domestic spending, especially in related sectors including food and beverage (F&B), retail and hospitality.

Tourism is another sector that is likely to reap the benefits of the nation’s entertainment reforms. Due to new government legislation, including the introduction of tourist visas and key developments to the nation’s infrastructure in line with Vision 2030, visitor figures are expected to reach 26 million (inbound) by 2023.

Retail will also represent an important driver for growth. According to CBRE, many mall owners will attempt to capitalize on entertainment reforms by refurbishing or repositioning their centers to accommodate cinemas and attract complimentary tenants moving forward.

“The entertainment sector is a game changer for Saudi Arabia. Previously untapped, it presents an abundance of opportunities for foreign investors who are eager to enter the Saudi market,” Simon Townsend, general manager (KSA) and head of Strategic Advisory at CBRE MENAT, said.