In the fourth quarter of 2023, HyperSpace plans to build two additional enterprises in Riyadh and Dubai.
Saudi Arabia is diversifying its interests in the entertainment sector by investing in a Dubai-based startup specializing in digital theme parks within shopping malls.
The Riyadh Season initiative from Saudi Arabia has contributed a significant portion of the $55 million raised in both debt and equity by HyperSpace, according to a Financial Times report. The latest funding round was led by Galaxy Interactive, a venture capital firm based in New York, with participation from various international investors.
HyperSpace, the creative force behind AYA, an immersive entertainment park situated at Wafi City in Dubai, is now preparing to launch its House of Hype in Riyadh and Dubai. The House of Hype, led by blockchain and gaming expert Alexander Heller, will celebrate "hype culture" with an emphasis on fashion, gaming, music, and NFTs.
The Saudi establishment will open in Boulevard City in a few weeks, as part of the Riyadh Season, while the Dubai Mall location, spanning 100,000 square feet, is scheduled to open in the fourth quarter of 2023.
In March, the Ministry of Investment of Saudi Arabia (MISA) facilitated 14 investment agreements to develop the kingdom's sports, entertainment, and construction sectors as part of a sponsorship program hosted by Invest Saudi, the government's investment arm. HyperSpace is one of the entities committed to expanding its presence in the country.
Saudi Arabia, as part of its Vision 2030 plan, is actively diversifying its economy beyond oil and gas. The General Entertainment Authority (GEA) of the country is leading many of these projects, including the annual Riyadh Season, which commences with the much-anticipated fight between WBC heavyweight champion Tyson Fury and UFC heavyweight Francis Ngannou on October 28.
Turki Al Sheikh, Chairman of the Board of Directors of GEA, announced in September that the country aims to attract 10-12 million visitors to its annual entertainment events.
For a nation that only recently began hosting live entertainment events, Riyadh Season and similar initiatives have proven to be significant revenue generators. In 2021, direct and indirect income from Riyadh Season 2019 reached SAR 6 billion, exceeding spending of SAR 3.1 billion. Net income from Riyadh Season 2021 was projected to surpass SAR 2.9 billion, while the event for 2020 was canceled due to the COVID-19 pandemic.
