In January 2023, the Saudi Arabian box office saw a surprising upset when the movie “Avatar: The Way of Water” was dethroned by a local comedy film called “Sattar.” Despite being in its third week of release and having a global box office haul of over $2.3 billion, “Avatar” was surpassed by the Saudi family comedy. “Sattar,” which premiered at the Red Sea Film Festival just a month prior, shattered box office records by earning $2.2 million within its first 12 days. This milestone instantly made it the highest-grossing Saudi movie to date.
Directed by Abdullah Al Arak, a Kuwaiti filmmaker, and led by popular Saudi actor and comedian Ibrahim Al Hajjaj, “Sattar” became a sensation in Saudi cinemas. It outpaced James Cameron’s “Avatar” sequel by more than 40 percent in terms of admissions and experienced a minimal drop of just 11 percent in its second week. As of now, “Sattar” holds the top spot in Saudi Arabia’s overall 2023 box office with an impressive revenue of $10.7 million.
The success of “Sattar” is potentially a cause for concern for Hollywood executives who may have assumed that they would dominate the lucrative Saudi market. The Saudi Arabian box office has become the largest in the Middle East, generating $242 million in revenue in 2022. It is also the fastest-rising box office globally, reaching the 15th position in 2021 and retaining that position despite the pandemic’s impact in 2022. Furthermore, experts predict that it could be worth $1 billion by 2030.
Even before the release of “Sattar,” lower-budget regional productions were already outperforming major Hollywood films in Saudi Arabia. Notable blockbusters that had been successful elsewhere failed to make an impact in the Saudi market. For instance, “Indiana Jones and the Dial of Destiny” underperformed significantly, ranking below three Egyptian comedies. This trend continued with other films like “Guardians of the Galaxy Vol. 3,” which struggled to surpass $2 million in Saudi Arabia compared to its global revenue of over $845 million.
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One reason for the dominance of Arabic cinema in Saudi Arabia is the fact that 50 percent of the population does not speak English. Middle Eastern audiences tend to relate more to local content. “Sattar” exemplified this phenomenon by offering a highly localized story, featuring well-known Saudi actors, Saudi folk music, and the popular sport of wrestling. The filmmakers behind “Sattar” understood the preferences of Saudi audiences, as they were experienced content creators who had gained popularity through their comedic YouTube videos dating back to 2010.
A similar trend has emerged in Kuwait, a smaller neighboring market. Kuwait, with a population of 4.5 million, has become the second-largest market for Arabic films after Saudi Arabia. The Kuwaiti film industry has dedicated significant screen space to Arabic features, and even major Hollywood titles like “Indiana Jones and the Dial of Destiny” faced tough competition from dominating Egyptian films.
The success of Egyptian movies in the Middle East is not surprising, as Egypt has a well-established and prolific film industry. However, with the emergence of Saudi Arabia as a major market, Egyptian filmmakers have a new avenue for revenue. Given Egypt’s economic challenges, the regional box office has become crucial for Egyptian producers. This has led to the production of higher-budget Arabic films aimed at capturing the growing market in Saudi Arabia. Despite their smaller budgets, these Arabic films have successfully competed against major Hollywood productions.
In addition to the rise of Arabic films, the growing number of major Hollywood titles banned in Saudi Arabia and Kuwait has significantly impacted the box office dynamics. Films like “Spider-Man: Across the Spider-Verse” and “Eternals” were not granted releases due to LGBTQ scenes or references, as suggested by the censors. This has led to concerns about the fate of upcoming Hollywood films, such as Warner Bros.’ highly anticipated movie “Barbie,” which may face challenges in securing a release due to its content. While these bans may cause revenue losses for Hollywood studios, they have opened doors for Arabic films to thrive in the Saudi market.
Overall, the success of “Sattar” and the rise of Arabic films in the Saudi Arabian box office demonstrate a shift in audience preferences and highlight the potential challenges for major Hollywood studios. As local content gains popularity and resonates with Middle Eastern audiences, Hollywood may need to rethink its strategies to capture a share of this growing market.
