Doha, August 21 (QNA) - Investment Promotion Agency Qatar (Invest Qatar) and Media City Qatar highlighted the role of foreign direct investment (FDI) in driving the growth of the digital media industry, in parallel with the importance that the GCC countries (the State of Qatar and the Kingdom of Saudi Arabia as a model) have given in their national visions for 2030 to cultural and media development and building a sustainable media system through investment in modern media infrastructure and developing talents.

In this context, Invest Qatar and the Media City indicated in a joint article that the communications and media sector ranked third in new investments between 2019 and 2023, confirming its importance among all other FDI sectors, noting that the distinguished geographical location of the GCC countries, which links the East and the West, and their possession of a world-class infrastructure, including, for example, advanced media cities and advanced communications networks, enables them to provide a dynamic media environment for media companies and investors alike.

CEO of Invest Qatar Sheikh Ali Alwaleed Al-Thani and Chief Executive Officer of Media City Qatar Jassim Mohamed Al Khori said in the joint article that the media landscape in the Middle East and North Africa (MENA) region, particularly in the digital and streaming sectors, has been experiencing significant growth.

Currently, GCC consumers have the second highest number of VOD services per person on average in the world, according to the Oliver Wyman Global Survey, while 5G is projected to account for 73 percent of all mobile subscriptions in the GCC countries by the end of 2026, according to the Ericsson Mobility Report.

Driven by increasing internet penetration, a young and tech-savvy population and the rising popularity of digital entertainment platforms, the region dominated streaming revenues with a 98.4% share of the market, according to the IFPI Global Music Report.

This is supported by countries like Qatar establishing partnerships with global media entities like Snap Inc, Amazon Ads, and TikTok.

FDI is a driving force behind the growth of the digital media industry, fuelling innovation and expanding opportunities across various segments.

From digital publishing and audio streaming to social media, the influx of international investments is reshaping the media landscape.

The GCC region, with its strategic position and ambitious visions for cultural and media development, stands out as a key player in this evolving market.

As technological advancements continue to shape the future of digital media, both investors and media companies are well-positioned to capitalize on emerging opportunities and drive further growth in the sector.

Qatar and Saudi Arabia have also outlined the importance of cultural and media development in their 2030 visions.

Saudi Vision 2030 outlines key initiatives to attract FDI and develop its media and entertainment sectors, intending to increase household spending on entertainment and leisure from 2.9 percent to 6 percent.

Meanwhile, Qatar National Vision 2030 aims to build a sustainable media ecosystem by investing in state-of-the-art media infrastructure and fostering talent.

Media City Qatar, a key enabler of the media industry in the country, is an emerging media hub and incubator for companies, entrepreneurs, innovators and creative talent.

It drives initiatives that bridge cultural gaps and foster international cooperation, all centered in Doha. Media City Qatar's three-part mandate covers regulation, development, and investment - including providing business incubation, permits, licenses and modern production facilities.

The article anticipated that these initiatives along with development programs by educational institutions to upskill labour and the continued growth of media organizations like Al Jazeera and BeIN Sports are expected to yield projected market growth of 10.21 percent from 2024 to 2029, according to Statista Market Insights.

The article said that FDI has emerged as a pivotal catalyst for growth in the global digital media industry.

By bringing substantial capital, cutting-edge expertise and advanced technology to host countries, FDI has significantly transformed the communications and media landscape.

According to fDi Intelligence, the communications and media sector ranked third in greenfield investments between 2019 and 2023, underscoring its importance among all FDI sectors.

This influx of investment not only fuels innovation but also fosters economic development, creating new opportunities and enhancing the competitive edge of media companies worldwide in key segments.

The article added that the relevance of FDI in digital media can be largely attributed to the global pandemic.

While most sectors faced a decline in investment, the media and communication industry saw a rise.

The pandemic accelerated the shift towards digital consumption, driving demand for digital content, streaming services and online communication platforms.

According to fDi Markets data, the communications sector was among the top six sectors for FDI capex in 2023, with capital expenditure (capex) reaching USD 79.77 billion and the number of projects totalling 679.

The sector's investment increased by 24 percent, highlighting its resilience and growth potential during a period of global uncertainty.

The article anticipated that the media market is set to continue its expansion, with most online media segments outpacing the global growth rate of 3 percent, as reported by the International Monetary Fund (IMF).

The three top segments expected to see the fastest growth from 2022 to 2026 are: Digital publishing, Audio and music, social media.

With regards to digital publishing, the accessibility of smartphones and tablets with platforms such as Amazon Kindle and subscription services has transformed how consumers access books, articles and magazines.

Major publishers like Penguin Random House and HarperCollins are now increasingly focusing on digital formats to meet evolving reader preferences, with e-books projected to reach a market volume of USD 15.33 billion by 2027, according to Statista.

In the TV and movie industry, streaming platforms like Disney+, Netflix and Amazon Prime Video are setting new benchmarks.

Between 2022 and 2027, Disney+ is expected to increase its annual investment in original content by 82.8 percent, according to Ampere Analysis, while Amazon Prime Video will increase its investment by 70 percent over the same period.

When it comes to audio and music, streaming services such as Spotify and Apple Music have driven a revival in the audio and music industry.

With millions of songs and podcasts readily available on singular platforms, the shift from physical and digital downloads to streaming is forecasted to grow the market by USD 70,023.6 million from 2023 to 2028, according to the Global Music Market 2024-2028 Report.

As for social media, innovations in content delivery, augmented reality (AR), and virtual reality (VR) are propelling the growth of social media platforms.

The global social media market size is expected to grow at a compound annual growth rate (CAGR) of 27.1 percent from 2023 to 2030, according to the Social Media Market Size, Share and Trends Analysis Report by Application, by Region and Segment Forecasts, 2023 - 2030.

The article pointed out that social medias highly engaged user base makes them prime targets for advertisers and marketers seeking to reach a wide audience.

This, coupled with the rise of influencers and influencer marketing has turned social media into a powerful marketing tool, with brands investing heavily in influencer collaborations and social media advertising, thereby driving further investment into these platforms.

(QNA)