In recent years, the film industry has faced multiple challenges and crises—political, economic, technological, and health-related—that have contributed to major structural changes in local creative economies, including the cinema industry. It is well known that films play a significant role in stimulating the creative economy, not only through financial incentives but also by enhancing the marketing appeal of a location.

Technological and global communication developments over the past decades have reshaped the rules of feature film production. Many studios and production companies now compete to find financial incentives and advantages that reduce production costs beyond national borders. Each year, production companies compete to produce between 800 and 1,000 feature films worldwide, with an average budget of $64 million per film. These films generate significant economic benefits for the host regions. Therefore, filmmaking also has a positive impact in showcasing new cities or locations, attracting tourists, and creating jobs.

In general, many countries view the film industry as a vital creative economic product in the 21st century. As many nations shift toward creative and knowledge-based economies, it is no surprise that numerous countries and cities are now actively seeking film productions. Attracting filmmakers to a specific region is typically the responsibility of film commissions, cultural creative institutions, and film festivals.

At the beginning of the millennium, with the rise of competition in visual production, both in television and cinema, many countries and regions began offering production incentives to attract producers and production companies. These incentives could range from direct financial payments to providing free filming locations. The competition intensified as countries like France, Germany, Portugal, Brazil, and Colombia began offering tax breaks, financial incentives, or cheaper labor.

The British government, for instance, provided £415 million ($578.7 million) in film tax relief in the fiscal year 2016–2017, an increase of more than 20% from the previous year, according to government reports. These incentives created many job opportunities, which in turn helped boost local production and involved numerous local companies and talents, thereby contributing to the development of domestic content.

On the other hand, these incentives also help in destination marketing. They improve the image of a place with the hope of encouraging commercial companies and factories to relocate their offices and facilities there, provide job opportunities for locals, expand the range of available community facilities, and improve the quality of life in the area. However, the main driver for destination marketing remains tourism. Nearly every country or region has a dedicated body responsible for marketing the destination to tourists.

For example, organizations like Tourism Australia and VisitBritain invest millions of dollars in tourism promotion and destination marketing. Filmed content contributes greatly to this effort. Take The Lord of the Rings, which was filmed in New Zealand—as per the New Zealand Tourism Board, the film series became a promotional tool for the country's image as a travel destination. The movie not only attracted the interest of tourists but also brought financial returns, generating over $41 million based on various assumptions about visitor attendance at filming locations.

In Saudi Arabia, one of the key strategies implemented by the Saudi Film Commission to develop the local industry and attract international productions is the provision of financial incentives of up to 40%. This initiative aims to invest in training, integrating local talents, and developing the film industry infrastructure.

Saudi Arabia has already hosted several international films, including Kandahar by director Ric Roman Waugh and Desert Warrior by British director Robert Wyatt, both shot in AlUla and NEOM. These productions contributed to the training and involvement of numerous Saudi talents.

In conclusion, the financial incentives offered by the Saudi government will help attract many international productions to Saudi Arabia, especially in the wake of ongoing economic and health crises worldwide. Moreover, these films will contribute to promoting Saudi tourism and developing local talents.