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Middle East a Bright Spot for Media

DUBAI - While the media and entertainment industry struggles worldwide, the Middle East is proving to be a bright spot, according to a research.

According to a recent A.T. Kearney study, the pan-Arab media industry is growing faster than the economy in general, at an average of about 19 per cent per year, as recorded during the last couple of years, compared to 3 to 4 per cent in Europe and the US.

The appeal of the sector to investors is expected to continue to grow as Middle Eastern consumers spend more disposable income on media and entertainment.

Partner and managing director, A.T. Kearney Middle East Dr Dirk Buchta said the reduction of regulatory barriers is a major supporting factor as Middle East governments are moving their economies away from the economic volatility of dependence on natural resources and towards more knowledge-based economies, and media is being targeted as a priority sector.

“The media industry is a great opportunity for the region to diversify economies and stimulate entrepreneurship, leading to small- and medium-sized companies providing local job opportunities and long-term sustainability and stability for the entire region,” he said.

Traditionally Middle East and North Africa (MENA) media centres were placed in Egypt, Jordan and Lebanon as places with the required talent base, more liberal environments and an interface with western culture and values. However, as the trend of government investment spreads more widely across the region, ‘media cities’ are being created in new locations spread around the Gulf.

“The pan-Arab media and entertainment industry has grown faster than that of any other region. Estimated at around $10 billion in 2007, the industry still looks promising,” said Dr Buchta.ahmedshaaban@khaleejtimes.com