A single concert can impact a country’s economy.
If you don’t believe that, look at Taylor Swift. The singer’s record-breaking Eras Tour was estimated to have spurred $5 billion in US consumer spending in just six months, according to Nomura. The Singapore Monetary Authority of Singapore (MAS) went as far as to credit Swift’s and Coldplay’s concerts as the main cause of Singapore’s 2.7% Q1 2024 yearly growth. The California Centre for Jobs & the Economy estimated the Eras tour would boost the Los Angeles County GDP by $320 million, creating 3,300 million jobs.
In the Middle East, the music economy is also on the rise. Revenues from recorded music in the MENA region rose by 14.4% in 2023, exceeding the industry’s global growth rate, according to data from IFPI, a trade body representing over 8,000 record company members. In 2021, music was the world’s fastest-growing market. That same year, Saudi Arabia launched its official music strategy, which included the building of 130 recording studios by 2030, as well as industry events such as XP Music Futures. Other GCC nations are following suit, looking at music artists and festivals as drivers of economic growth.
With music tourism forecasted to reach $13.8 billion by 2032, GCC governments and private companies are directing their efforts towards bringing the world’s largest superstars to their shores. The goal? Bringing the music business alive.
Someone like Saudi
For years, music was prohibited in public spaces in Saudi Arabia. However, since 2017, it has entered its dancing days, with the Kingdom’s government actively sponsoring cultural celebrations, concerts, food festivals, art exhibitions, sporting events and other activities, as part of its Vision 2030 diversification strategy. According to a recent report by Mordor Intelligence, Saudi Arabia’s event management industry is expected to grow from $2.38 billion in 2024 to $3.45 billion in 2029. With around 70% of the Saudi population aged under 35, the Kingdom has an obvious appetite for new experiences and cultural expressions.
Launched in Riyadh in 2019, MDLBEAST’s Soundstorm is one of the largest live music events in the Middle East. The three-day celebration has featured regional talent with guests including Saudi singer Fulana, Egypr’s Amr Diab and Lebanon’s Elissa, performing alongside international stars such as Metallica, Post Malone, Bruno Mars, J Balvin and even Will Smith. In 2023, Soundstorm’s stages welcomed 700 local artists and 400 international acts. That same year, MDLBEAST contributed SAR 1.45 billion ($386 million) directly and indirectly, to the local economy, supporting over 750 local businesses and creating over 16,000 job opportunities, according to figures provided by the company.
“Live events are more than just great music and fun times—they’re economic engines,” said Ramadan Alharatani, CEO of MDLBEAST, in an exclusive interview. “Think about it: when we host a large-scale festival like Soundstorm, we’re not only selling tickets; we’re creating jobs, supporting local vendors and stimulating a whole range of businesses, from hotels to restaurants to transformation.
“More visitors means more spending, which means more growth in various sectors. It’s a win-win that supports the broader goals of Vision 2030 to diversify the economy.”
“The music scene here was almost non-existent before 2016, and now it’s exploding.”
Ramadan Alharatani of MDLBEAST.
Music is certainly part of Saudi Arabia’s strategy to boost tourism and gain international recognition. But the Kingdom is not only spending money on the sector—it’s also investing in it. In April 2020, the Public Investment Fund (PIF) bought a 5% stake in Live Nation Entertainment and SRMG Ventures has recently made a $5 million investment in Anghami, the Arab-based music streaming service. The Kingdom has also set itself a goal to increase household spending on cultural and recreational activities from 2.9% to 6%. According to Alharatani, “live events are a powerful way to do that”.
“Saudi Arabia has set its sights on becoming a global hub for entertainment, and live music events are a key part of that vision. And there’s a real hunger for that kind of cultural evolution, especially among Saudi youth,” he added. “The music scene here was almost non-existent before 2016, and now it’s exploding. This isn’t just about building a music industry; it’s about being part of a cultural renaissance in Saudi Arabia. It’s an incredible time to be here and to be part of this transformation.”
As such, Saudi’s streets will continue to be filled with song.
Party in the UAE
Can artists become crazy in love with Dubai? It was in 2023 that Beyoncé chose the city as the location for her first live performance in five years, to celebrate the grand opening of Dubai’s Atlantis The Royal luxury hotel. During her $24 million concert, she paid homage to the region, by singing alongside the Lebanese dance troupe the Mayyas and sampling songs by local icons including Lebanon’s Fayrouz and Algeria’s Warda. Tim Kelly, then Managing Director of Atlantis Dubai, described the performance at the time as “a true icon, launching an icon”.
For many years, the UAE’s live events industry’s nemesis was the summer heat. Enter Coca-Cola Arena. The 17,000-capacity air-conditioned multipurpose venue was inaugurated five years ago. In less than half a decade, the arena has become a fundamental player in the region’s music sector, attracting global artists travelling between Europe and Asia. Between 2019 and 2023, the venue hosted over 251 live shows and staged 390 international artists. The first was the pop group Maroon 5, in January 2019. Since then, its stage has welcomed stars as bright as Ed Sheeran, Enrique Iglesias and, this winter, Ricky Martin.
“Dubai and Coca-Cola Arena are now ‘a must play’ destination for touring artists”
Mark Jan Kar, of Coca-Cola Arena
“Dubai has become a world tour stop for many artists and touring shows; this not only makes it more economical but grows credibility for the destination for the artist,” said Mark Jan Kar, SVP, Entertainment, Content and Programming (MENA) and ASM Global General Manager, Coca-Cola Arena. “Dubai and Coca-Cola Arena are now ‘a must play’ destination for touring artists as well as a ‘must experience’ attraction for artists and visitors alike.”
Superstars bring significant business to the venue, but they are far from the only reason for its success. Jan Kar named the demographic of residents and visitors of the UAE, their interest in live experiences and the building’s multi-purpose design and flexibility, as key business drivers. Moreover, the venue has not forgotten its location, promoting a varied calendar of performances.
“Coca-Cola Arena consistently announces events that cater to a diverse audience,” he noted. “There is something for everyone, from Arabic concerts and Southeast Asian shows to family events, comedy shows, sports and much more.” In his view, this is only the beginning, as he talked about the future of the market being driven by “genre crossover”, such as in particular Arabic artists with Bollywood or Western. “We recently saw this with Arijit Singh with Ed Sheeran at the O2 in London.”
Jan Kan is not the only one to notice the UAE’s local talent’s potential. International investors are also taking note, as shown by the number of deals taking place in recent years. In 2023, Universal Music Group, acquired Chabaka, a UAE-based company which provides digital distribution, marketing, publishing and label services for 150 artists in the MENA region. That same year also saw the forming of two significant joint ventures. Abu Dhabi’s PopArabia and New York’s Reservoir Media jointly acquired Egyptian record label 100Copies, while Oak View Group (OVG) and Ethara partnered to allow the former’s expansion into the Middle East.
Thinking out loud, the business seems set for great success.
Born in Bahrain
The power of music—and its financial returns—have also reached Bahrain’s shores. Cultural and sporting events are an integral part of the Kingdom’s tourism offer. High-profile events such as the Formula 1 Bahrain Grand Prix and the annual Bahrain International Music Festival large crowds, leading to increased spending in local businesses, hotels, and restaurants, generating important economic returns. As you read this, the country is gearing up to welcome renowned DJ and music producer Calvin Harris, who will take to the stage at Al Dana Amphitheatre on October 25. In many instances, music is what tourists came from.
“By curating a diverse calendar of festivals, concerts and performances, we aim to attract a wider audience—both local and international—creating lasting memories, and stimulating economic growth through increased spending and investment in various sectors associated with the live events industry,” said Sara Buhiji, CEO of the Bahrain Tourism and Exhibitions Authority (BTEA).
“Bahrain can solidify its status as a premier destination for international tourism and cultural events”
Sara Buhiji of the Bahrain Tourism and Exhibitions Authority (BTEA).
The tourism sector contributed 7% to Bahrain’s GDP in 2022 and is projected to continue increasing, to reach the goal of attracting 14.1 million visitors by 2026. The Kingdom’s events stimulate consumer spending and create jobs, positively impacting local businesses, hospitality services and related industries. Additionally, partnerships with the private sector enhance investment opportunities, fostering a more resilient economic environment. According to Statista figures, Bahrain’s revenue in the music events market is projected to reach $42.61 million in 2024, showing an annual growth rate (CAGR) of 2.97%, and resulting in a projected market volume of $47.9 million by 2028.
“The future of Bahrain’s tourism sector is incredibly bright,” Buhiji added. “With a dynamic calendar of events, we’re well-positioned for significant growth in the coming years. With the strategic aim of increasing visitor numbers and enhancing service quality, Bahrain can solidify its status as a premier destination for international tourism and cultural events, further integrating into the Gulf tourism landscape.”
Don’t stop believin’
When we listen to music, where do we go? The global live music market is set to reach $58.9 billion in 2023 and grow at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030, according to Cognitive Market Research. The advent of generative artificial intelligence, virtual and augmented reality and social media platforms are all expected to forever transform the industry—with VR and AR being already used during events such as Soundstorm. The goal is not only to get more people to listen to music but to nurture unforgettable memories
“Saudi Arabia is becoming the centre for innovation in the music and live events sector,” Alharatani explained. Looking at the future of the sector, he envisions “more hybrid events that mix music with art, culture, technology, and even wellness—creating all-around experiences that are both unique and appealing to a global audience.”
The demand for live entertainment seems as strong as it ever was, particularly in the Middle East. The incredible demand for tickets for the four 2025 Coldplay concerts is the latest example. In order to maintain this growth, officials have suggested working on a common GCC-wide events calendar that entices tourists to make multiple stops in the region. Bahrain and Saudi Arabia have already made a start, having signed the first cooperation agreement between the tourism sectors of the two countries in 2023.
“I really love the suggestion of aligning our calendars, at least on the biggest events,” Fahd Hamidaddin, CEO of the Saudi Tourism Authority, said during a panel discussion during the 2024 Arabian Travel Market conference. “Not only the ones that we host individually but also if we want to get the Taylor Swifts of the world, we can collaborate and get them to the region if we do it together and get an Arabian tour.”
Given the sector’s growth, it would not be surprising for such a tour to become a reality. Even further, could we soon see an Arab superstar taking over the global charts? In any case, the GCC live music sector is set to remain a sound investment.