Saudi Arabia set to cancel Joy Awards as budgets tighten, sources say

Summary

• Riyadh is set to scrap next year's Joy Awards, its star-studded answer to the Grammys, two sources told Reuters.
• Budget strain and the Iran war have hit the kingdom's entertainment sector, with festivals and megaprojects already postponed.
• Investment-driven events survive the cuts; entertainment spending is being deprioritised under Vision 2030 strain.

The latest

Next year's Joy Awards, the crown jewel of Riyadh's events calendar, are set to be cancelled as financial strain and the Iran war squeeze Saudi Arabia's young entertainment sector, two people with knowledge of the matter told Reuters. The January ceremony drew Katy Perry and Robbie Williams this year and hands out prizes across music, entertainment and sport.

Details

• The organisers: The Joy Awards are run by the General Entertainment Authority alongside Saudi media conglomerate MBC Group. A spokesperson for the authority did not respond to a request for comment, and neither MBC Group nor the Saudi government's media office responded to requests for comment, Reuters reported.
• The timing: Industry sources told Reuters budget cuts were already being felt before the Iran war. The conflict has since undermined Crown Prince Mohammed bin Salman's drive to turn the kingdom into a destination for tourism and global events under his Vision 2030 plan.
• The megaprojects: Flagship ventures scaled back or indefinitely postponed over the past year or so include The Line, the 100-mile (161 km) steel and glass tower at NEOM, and a $50 billion cube-shaped structure in Riyadh, according to Reuters.
• The sports retreat: The government has withdrawn funding from LIV Golf after spending more than $5 billion on the startup. Two sources said Riyadh is now quietly shelving plans for NEOM Stadium, one of the main venues earmarked for the 2034 FIFA World Cup.
• The festivals: The Red Sea Film Festival was postponed last month until 2027, with organisers citing logistical constraints and other factors. Organisers also called off Soundstorm, the MDLBEAST desert festival due in December, which drew hundreds of thousands and was headlined by Cardi B last year.
• What survives: Events designed to attract investment into the kingdom are still on. Organisers said the flagship Future Investment Initiative, due at the end of this month, remains scheduled as planned. Soundstorm's organisers said it would return next year but gave no reason for the cancellation.
• The consultant: Dubai-based media consultant Mazen Hayek told Reuters the war and its ripple effects are inevitably prompting Gulf states to reassess spending priorities. He said some events were conceived as instruments of visibility, soft power and influence, objectives governments may now weigh against other national priorities.
• The industry read: Industry sources said uncertainty over the Iran war has made it harder to book international stars. A person working in the Saudi events industry told Reuters events important for the economy and the kingdom's global standing stay prioritised, while what is dropped is "anything that is singing and dancing and having a good time."

Background

Vision 2030 made entertainment a pillar of Saudi Arabia's economic diversification, with the General Entertainment Authority created to build a sector from near zero. The Joy Awards became its most visible showcase, importing global stars to Riyadh each January.

Between the lines

The pattern across the cancellations points to a hierarchy rather than a blanket freeze. The Future Investment Initiative proceeds while the Joy Awards, Red Sea Film Festival and Soundstorm fall away, and funding has been pulled from LIV Golf and NEOM Stadium even with a 2034 World Cup commitment. Spending tied to capital and credibility is being defended; spending tied to spectacle is not.

What's next

Watch whether the Future Investment Initiative proceeds as scheduled at the end of this month, whether the General Entertainment Authority or MBC Group confirms the Joy Awards decision, and whether Soundstorm returns as organisers promised.

Source: Reuters (Timour Azhari)