Snap tips Riyadh to become nerve centre for Mena social media

December 10, 2024, 8:01 AM

Saudi Arabia had 35.1 million social media users in January 2024, according to DataPortal

Snapchat founder opens Saudi base
1.4m online creators across Mena
Creator economy valued at $250bn

Social media giant Snap is betting on Saudi Arabia becoming a leader in the Middle East’s online creator economy, a company spokesperson has told AGBI.

The developer of Snapchat announced in late November that it had opened an office and a base for content creators on the outskirts of Riyadh – its first in the region.

Snap, which carved a niche for itself with disappearing images and videos but now also offers other multimedia products, reaches more than 90 percent of 13 to 34-year-olds in Saudi Arabia.

“This reach is not limited to the Gen Z – 71 percent of parents in Saudi Arabia also use Snapchat,” the spokesperson said.

The hub for content creators, known as Majlis Snap, aims to identify and nurture people who can build their own brands and attract large audiences on Snapchat. Majlis Snap and the company office are in the Jax district of Diriyah, north of Riyadh’s centre.

“The potential of the Saudi creator economy is immense, both within the kingdom and across the broader Mena region,” said the Snap spokesperson.

“With sustained investment and platform innovation, Saudi Arabia is on track to become a leader in the creator economy both locally and regionally.”

According to DataPortal, Saudi Arabia had 35.1 million social media users in January 2024, equating to 94 percent of the population.

The creator economy is already worth about $250 billion and this figure is forecast to rise to $480 billion by 2027, according to Goldman Sachs.

Online creators make about 70 percent of their money from brand deals advertising to their audiences on platforms such as Snapchat, TikTok and Instagram.

A Deloitte survey has found that with the right influencer’s recommendation, three out of five consumers are likely to engage positively with or make a purchase from a brand. This immense opportunity for advertisers is the crux of the creator economy.

Julien Hawari, CEO of Million, which helps people monetise their digital content, said there were more than 1.4 million creators across Mena – and 2,578 had crossed the coveted million-follower threshold.

In Saudi Arabia, these people are benefiting from the push into sports and entertainment as part of the country’s Vision 2030 strategy.

“This transformation creates extraordinary opportunities for platforms that can bridge the digital and physical relationships between fans and creators,” he said.

Ola Zaidan, senior manager for media and influencer relations at the Dubai office of PR agency Weber Shandwick, said Saudi Arabia was “successfully diversifying its creative landscape. This strategic move not only broadens the range of opportunities available to content creators but also invites talented individuals from various backgrounds to pursue careers within the creator economy.”

Investing in local talent, as Snap is doing, “is a key element in growing the industry and the creator economy”, she said.

Growing numbers of investors are taking notice of the creator economy’s potential as it develops via streaming platforms such as Twitch, monetisation specialists such as Million or donation sites such as Patreon.

Jeff Morris Jr, managing partner of investment firm Chapter One, said: “In Saudi Arabia, with its focus on diversifying the economy, there’s huge potential in platforms that help creators make money — like video apps, AI tools or services that connect them with brands.

“It’s a space that will boost economic growth, while giving local talent a chance to shine.”