Saudi Arabia Cancels Red Sea Film Festival as Gulf Spending Shifts

Saudi Arabia canceled its Red Sea International Film Festival in Jeddah last week, and the war in the Middle East is only part of the reason. The same week, the long-dormant Dubai Film Festival announced it will return in 2027 in an overlapping slot.

Multiple sources say the destabilization of the Gulf festival circuit points to the failure of a Hollywood-backed image-sanitization campaign that cost Middle East investors heavily and delivered few results.

What is driving the cancellation?

Regional danger is real. Saudi cities including Jeddah and Riyadh have been targeted by Yemen's Iran-backed Houthi rebels, and the US State Department recently advised Americans against traveling to Saudi Arabia. The festival was set to open in early December.

But money and priorities matter more. "Reducing spend on a film festival" is part of current thinking in Riyadh, says Dubai-based media consultant Mazen Hayek, where the big priorities are the Riyadh Expo 2030 and the 2034 FIFA World Cup. One likely factor, he says, is "the prioritization of projects and initiatives that Saudi is investing in, including image and reputation-related events."

"Do you really think an American actor is going to travel to the region right now?" says a senior industry source familiar with the events. "Who is going to get on a plane?"

Why was Red Sea founded in the first place?

The festival launched as Saudi Arabia tried to repair its image following the 2018 murder of journalist Jamal Khashoggi. Critics accused the kingdom of using the festival, along with sports and other celebrity-driven events, to rehabilitate its reputation. Red Sea executives argued the event was building a genuine film industry in a country where cinemas had only recently reopened. It was a bit of both, the report notes.

The perks for A-list talent were undeniable:

• Premium hotels, including the Assila Luxury Collection and the Shangri-La Jeddah on the Red Sea waterfront.
• Tours of the oasis of AlUla and its sandstone canyons.
• Johnny Depp, whose 2023 comeback film "Jeanne du Barry" was financed by the Red Sea Fund, reportedly spent weeks as a guest of the royal family, shuttling between superyachts, mountain retreats and palaces.

The festival has historically spent millions to lure stars including Will Smith, Gwyneth Paltrow, Michelle Williams and Halle Berry. Last year, "Anora" director Sean Baker presided over a jury at an edition that opened with Dakota Johnson, Uma Thurman, Ana de Armas, Vin Diesel and Michael Caine in attendance — none with a film to promote.

What happens next?

In a statement, the festival vowed to return in the fourth quarter of 2027 with a "renewed vision," while continuing to finance Arab movies through its fund. "Hollywood stars, alongside leading international filmmakers and talent, will continue to be part of the festival experience," said Faisal Baltyuor, CEO of the Red Sea Film Foundation. "At Red Sea, their presence goes beyond the red carpet, creating opportunities for audiences, emerging filmmakers and the industry to engage with leading creative voices."

"I don't believe Red Sea will be discontinued," says Egyptian producer Mohamed Hefzy, CEO of Cairo-based Film Clinic, which has a Saudi outpost. He believes the festival will remain part of the leadership's vision to foster a film industry, though it will aim to become "more economical and self-sufficient in the future."

Arab film distributor Alaa Karkouti agrees, with a caveat: "You can't keep inviting Hollywood stars forever, unless they are coming to promote a film."

Could Hollywood still come calling?

The Gulf's leverage over Hollywood may be growing rather than shrinking. The sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi hold an indirect stake of nearly 50% in David Ellison's $111 billion bid for Warner Bros. Discovery, as his Paramount Skydance inches closer to a merger. Talent uneasy about walking Middle Eastern red carpets may soon find a powerful new boss making the case for the trip.