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May 21, 2026 6:45am PT

Film AlUla Bolsters Role as Movie Industry Driver as Saudi Kingdom Raises Its Film Production Rebate to 60%

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Nick Vivarelli

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Nick Vivarelli

International Correspondent

@NickVivarelli

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Saudi Arabia’s Film AlUla — the film commission covering the northwestern region of the kingdom — is strengthening its position as a key pillar in the nation’s push to develop a full-fledged film industry. This progress stems from its newly formed partnership with global studio powerhouse MBS Group and its continued collaboration with the Red Sea Film Foundation. These insights emerged during a panel featured in Variety’s Global Conversations series at the 2026 Cannes Film Festival.

Phillip Jones, chief tourism officer of The Royal Commission for AlUla, emphasized that “one of the real needs we have is training locals for jobs in the industry.” This effort is carried out jointly with MBS Group — which oversees Manhattan Beach Studios, home to James Cameron’s “Avatar” sequels, as well as the cutting-edge AlUla Studios — and with the Red Sea labs and fund. Faisal Baltyuor, CEO of Red Sea Film Foundation, noted that “if you submit a film project to the Red Sea Fund, which is one of the largest in the Middle East, we give that project an option to be shoot in AlUla.”

Baltyuor highlighted two Saudi productions filmed in AlUla that later appeared on the international festival circuit: Tawfik Alzaidi’s “Norah,” which in 2024 became the first Saudi film selected for the Cannes official lineup, and Shahad Ameen’s “Hijra,” which premiered at Venice in 2025.  

Regarding studio facilities in AlUla, two 25,000-square-foot soundstages and a state-of-the-art recording studio are already operational, according to MBS Group chief studio and real estate officer Jason Hariton. “But the ability to expand is something super important,” he added, “because from a backlot perspective, we have the ability to do pretty much whatever we need to do.”

“You are [just] seeing phase 1-A now, even though it can handle a high-budget [international] production or local production,” Hariton went on to note.

Jones proudly pointed out that Stampede Ventures’ “Chasing Red,” an adaptation of Isabell Ronin’s bestselling YA romance shot in AlUla in January, marks the first Hollywood movie made entirely in Saudi.

“We have lots of cactus left over because we served as a backdrop for Arizona. So if anyone needs a cactus, let us know!” he joked.