Saudi Arabia + NEOM: AV comes to the Kingdom

AV Magazine

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Vision 2030 is a comprehensive plan to diversify the Saudi Arabian economy away from oil. Although much of it is artist impressions, the project claims the kingdom’s non-oil GDP growth rate rose from 1.82% in 2016 to 4.93% in the first half of 2023*. This economic expansion is the backdrop to many opportunities for the AV sector. 

With its glossy high tech artist impressions Saudi Arabia’s Vision 2030 can sometimes seem a mirage. In fact, it remains on track to deliver a comprehensive transformation plan aimed at diversifying the economy, modernising infrastructure, and improving the quality of life.
AV is a crucial component of this vision, contributing to the country’s rapid development.

“Saudi’s AV market is experiencing remarkable growth and transformation, driven by ambitious plans across various sectors albeit with a high degree of skepticism due to the scale of development and investment,” Ahmad Dahmash, Daktronics regional sales chief tells AV Magazine.

Calling the market “dynamic and promising” Digital Projection’s regional business development manager, Nizar Samir Naser notes concerns about the pace of technology adoption, market readiness, and the eye-watering investments needed for financing giga projects which “can sometimes be challenging.”

The country is a hot bed for investment and construction with some super scale, ultra luxury and futuristic mega city projects such as Red Sea Global, The Line, AlUla Resort, Qiddiya City and NEOM. These are to be world-leading destinations, incorporating resorts, entertainment venues, theme and water parks, medical facilities, airports and more.

“Naturally, AV integration within these projects is also super scale and the business opportunities for AV integrators and suppliers is significant,” says Justin Joy, senior sales manager, Peerless-AV.

He charts a sizeable uptake in AV adoption since 2019, encompassing digital signage, workplace technology, command and control and AI integration.

“A key focus for the government is opening the region to international visitors,” he says. “It was only 2019 that it first opened for tourism and there’s been a considerable increase since then. A target for the region is to eventually attract seventy million tourists, a rise from twenty seven million in 2023.”

Will they happen?
Whether all 20 mega projects planned over the next decade will be built is another question. The Red Sea project has released its initial packages to tender with more scheduled by year’s end, reports Naser. The Qiddiya project is experiencing some delays but remains ongoing without signs of postponement.

“Projects like The Line might well be scaled back to be shorter than originally intended, but that does not make it a failure,” says Steve Simpson, regional sales manager, Datapath who maintains that even if it ends up being 17kms long instead of 170kms it’s still an amazing achievement.”

Entertainment is a key vertical and focus in the region. Theme parks, such as Six Flags Qiddiya City, are rapidly progressing with 75 per cent complete as of early July. Production companies are seeing big business in the live entertainment and events sector and many are setting up local offices to meet demand.

King Salman International Airport in Riyadh, a new global aerotropolis under construction, will span 57 km2, featuring six parallel runways and aims to accommodate 120 passengers by 2030. A new metro line is also being built which connects the entire city.

Significant transport infrastructure projects, such as the Haramain High Speed Railway connecting the holy cities of Mecca and Medina “have created numerous demands for control rooms and security monitoring,” says Cecilia Willis, Matrox Video’s country manager.

The capacity of al-Haram Mosque in Mecca is being tripled to accommodate up to 150,000 pilgrims heightening the need for enhanced security monitoring. To address this, Matrox has implemented large-scale encoding solutions to capture and display IP camera streams from around the holy site.

DooH on a roll
“Saudi is one of the fast-growing countries anywhere in installing DooH,” reports Dahmash. “You can see lights and screens on every corner.”

He points to the role government policies and support are playing in enabling DooH growth. Regulations are evolving to accommodate and encourage the use of digital advertising technologies too. “DooH advertising has become increasingly prominent in Saudi Arabia,” he says.

Outdoor digital signage is in high demand at entertainment and attraction venues. Peerless AV’s 65in high bright displays are being installed throughout Six Flags in part, says Joy, because of the tech’s performance in harsh, high temperature, sandy environments.

“Indoor and outdoor LED is being installed across all verticals but a few big sectors are transportation control rooms,” he says. “Large-scale, wow-factor outdoor LED is currently going into the New Murabba downdown project in Riyadh and features eighty state-of-the-art venues. Front projection is also being installed in large room projects in entertainment, government, military and corporate.”

Sports and live events
There’s a strong focus on modernising infrastructure to host major international events such as the Asian Cup in 2027 and the FIFA World Cup in 2034. This involves building new stadiums and renovating existing facilities across the Kingdom to meet the latest technological standards.

Trends here, shared by Dahmash, include leveraging government and private sector support to fund and develop sports infrastructure; and legacy planning to ensure the longevity of these investments.

“By focusing on these areas, Saudi Arabia is well-positioned to transform its sports and live events market, providing world-class venues and experiences that will leave a lasting legacy,” he says.

The AV market in the Middle East is not homogenous and varies significantly by country. “In the UAE pro AV is more mature and structured,” says Dahmash.

“The market is service and quality-oriented, characterised by well-planned projects with reasonable timeframes and project schedules. The emphasis is on delivering high-quality solutions, ensuring meticulous planning and execution.”

AV channel fast emerging
In contrast, he says Saudi Arabia’s AV market is developing rapidly, with a focus on quick progress and fast-tracked projects. However, decisions on technology tend to take longer, leading to urgent delivery requests that can compromise the quality of solutions. “Frequent last-minute changes and the involvement of multiple stakeholders often impact the final outcomes.”

As you’d expect there’s been a significant demand for rental equipment in recent years. Shows include the Red Sea Film Festival in Jeddah and the Saudi Light & Sound Expo in Riyadh.

“Despite growing availability of rental equipment, it still falls short of demand, often necessitating local companies to source equipment from the regions, or Europe,” says Naser.

Digital Projection is finding fixed installs of its kit in demand in museums and exhibition halls. “In 2023, our sales in this market doubled, and we anticipate even greater growth in 2024,” says Naser.

Hospitality and CCTV
Plans for hospitality and tourism look to build some of the best luxury hotels in the world, not just inland but on the Red Sea such as the Nujuma, a Ritz-Carlton Reserve. “The demand for safety and CCTV is a major factor where all large hotels will have a control room as well as many thousands of cameras and, of course, the need for IPTV in boardrooms and auditoriums,” says Simpson.

Datapath has already provided video processing for upgraded stadiums and hotels in both signage and CCTV requirements. Whether it’s a microphone or a lighting system or HVAC to cool all the new buildings and AV racks, a whole world of AV products will be needed.

“I’ve seen more control rooms being proposed not only for CCTV but cyber security, new transport links and other government sectors as they all ramp up with the new demand,” says Simpson. “There’s something for every AV integrator to work on.”

Business culture
Business culture across the Middle East is generally similar. “Some places are more conservative, but overall, there’s a focus on fair competition and mutual respect,” says Naser. “This creates a positive environment for business, similar to the UAE and neighbouring states.”

Ninety-five per cent of Saudi projects are government backed with semi-governmental entities overseeing them. “To get your products or solutions approved as a vendor, you would need to be in contact with the entities responsible for procurement and approvals,” advises Naser.

That may first require registering your business in the country, says Simpson who also points to strict importation rules for products that have to meet local SASO standards. “If a product does not meet these standards then it will not be imported.”

Electrical equipment must have the latest CE certifications and any product with an Ethernet port will be subject to strict regulations.

Willis says the UAE remains a key gateway to Saudi business, with many large distributors in Dubai serving the Saudi market. “Additional regulatory requirements and documentation, such as SASO certification of conformity and certificates of origin, add complexity to the export process. Some companies lack the resources or in-house expertise to manage these requirements, leading them to prefer selling through a third country like the UAE.”

However, an increasing number of distributors and manufacturers have been investing in staff, offices, and/or demo facilities within the Kingdom. This strategic shift aims to build closer ties to the market and respond more effectively to opportunities.

“Visibility in the market is very important, so whether you have an office in Saudi Arabia or local representation, it is crucial to visit the country regularly to build trust with prospective customers and learn more about the local market and projects.”

The importance of local relationships is further stressed by Joy. “Anyone trying to engage in the region must have a strong understanding of the culture, religious holidays and business intricacies. Close business ties are forged by regular in region visits. Public tenders are floated to everyone but what’s most important is to have a local distribution and reseller network with reach into all major territories.”

Whereas government contractors were once prepared to pay for the highest quality products and services, there are now more competitive valuations.

Simpson puts this down to SIs from UAE or Qatar establishing Saudi offices to tap the market. “I’ve seen a brain drain with several of my friends now working in Neom or at the Red Sea projects,” he reports. “With this comes more competition and unfortunately also the rise of cheaper made products which claim to do the same thing as the more established brands. While this settles down there will be a fair bit of a price war which may affect the quality of service.”

Joy observes more global OEMs setting up local manufacturing. Dahmash agrees that the entry of international companies makes the market more competitive but adds “its size allows opportunities for all players.”

Client demands are becoming “more customised and mature” says Dahmash, “requiring tailored solutions.” He warns of potential delays and changes in project plans “highlighting the need for effective project management.”

When projects get greenlit product is needed ASAP. “Having a distributor with good stock levels and fast delivery is very important,” says Joy. “Seeing is believing with integrators in the region. Regular in-person training on products is highly valued.”

Simpson has lived in Dubai for over 20 years and saw The Palm archipelago being built from just a small patch of sand on Jumeirah beach. “I have seen firsthand how this region can transform itself, even through the financial crises of 2008. Some projects were slow or scaled back, but some are coming back to life now.

“Saudi will probably exhibit a similar cycle where things will slow, change or even be cancelled, but something else will come in its place. No country since the rise of the UAE has captivated our imagination with mega projects like Saudi.

“Whatever happens it is changing Saudi forever and should firmly put the country on the map for future tourism, something I never thought about even 10 years ago.”