DIS Walt Disney Co

By Erich Schwartzel and Margherita Stancati 

LOS ANGELES -- Hollywood turned a little bit Saudi this week, down to the white wine glasses full of mineral water.

That was the drink of choice at one of many events hosted by a delegation from Saudi Arabia feting the country's film industry, which until a few months ago hardly existed. Now, with cinemas about to open in the kingdom after a three-decade ban and billions of dollars committed by the government to entertainment, two very different worlds are coming together for the first time.

At a Saudi film festival in a theater owned by the Academy of Motion Picture Arts & Sciences, a "deep tech" DJ from the Hollywood Hills with shoulder-length hair and a black fedora sipped a fruit juice while chatting with date merchants in traditional Saudi dress.

"Most Hollywood parties have a lot more Champagne," said the DJ, Chris Fitzmorris.

From the virgin cocktails to the grandiose plans for sprawling soundstages across the Saudi desert, the week was a sneak preview of what the Saudi-Hollywood relationship might look like: a bit surreal but potentially lucrative.

It coincided with the visit of Saudi Crown Prince Mohammed bin Salman to California. He is here to pitch the kingdom as a business destination, part of his plan to transform the conservative petrostate into an open, 21st-century economy. To do that, he needs Hollywood's help.

Theater-chain executives, studio chiefs and soundstage managers attended a symposium organized by the Saudi delegation at the Four Seasons in Beverly Hills on Wednesday. The Saudis are trying to secure partnerships between their country and executives at companies like Walt Disney Co. and studios Warner Bros. and Universal Pictures.

Such a partnership occurred, albeit on a much smaller scale, on "Jaber." The short film brought together Saudi director Abdulrahman al-Jandal and Burbank, Calif.-based producer Nicholas Joseph Cunha. Set between Los Angeles and the Eastern Saudi city of Alkhobar, the film was shot in California.

Mr. Cunha, who mostly works on hip-hop videos, said the Saudi market provided a fresh set of opportunities. "It's a place that's never been touched," he said, finishing a cardamom-infused Arabic coffee at Wednesday's event.

Guests sipped cocktails featuring chia seeds and maple syrup and named after classic films like "Singing in the Rain" and "Casablanca." Snacks included "salty Saudi pancakes" and spiced rice with lamb -- a Saudi staple, here served in little jars.

A variety of dates were on hand, brought to Hollywood from the Saudi oasis town of Al Hasa. "These are my signature products," said farmer Khalid al Ramadan, pointing to dates with pistachio filling covered in white chocolate and rose petals.

It is Mr. Ramadan's first time in the U.S., but he says American culture feels familiar to him. "It's because of Hollywood," he said.

But California's gender-neutral bathrooms and LGBTQ-friendly culture is an odd match for Saudi Arabia, home to an austere interpretation of Sunni Islam where gender segregation is still widely practiced, with unrelated men and women not officially allowed to mix in public, and heterosexual relations outside marriage are banned.

Under Prince Mohammed, Saudi Arabia's strict social rules are relaxing -- a push partly intended to make the kingdom more attractive to foreign investors. From June, women will be allowed to drive. And later this month, the country's first commercial cinema in 35 years will open, courtesy of AMC Entertainment Holdings Inc. Executives expect a box office of about $1 billion within five years, potentially turning the country into a new trove of found money for Hollywood.

Questions remain about the economics of the market, including how much money from ticket sales will flow back to studios or what censorship requirements Saudi officials will demand.

The country is looking to build its entertainment industry in other ways. Its sovereign-wealth fund is moving to buy a stake in Endeavor LLC, a company that includes the world's largest talent agency, Saudi officials have said.

Until recently, the Saudi film industry only existed underground. Religious conservatives vociferously opposed attempts to lift the country's ban on cinemas, and aspiring filmmakers at best could hope to show their films in theaters abroad, or in rare private screenings inside the kingdom.

"Lots of companies are coming to this market. It's a big market -- people are thirsty for entertainment," said Ahmed Almulla, the organizer of a film festival in the kingdom. "But for Saudi artists who make their own films, it will be hard. The competition will not be fair and easy."

(END) Dow Jones Newswires

April 05, 2018 17:48 ET (21:48 GMT)

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