New Toronto partnership opens financing covering up to 50% of film production costs in AlUla

Film AlUla and international film financing company Sherborne Media signed a memorandum of understanding on the sidelines of the 2026 Toronto International Film Festival, in a move aimed at addressing one of the most significant obstacles facing producers: securing the liquidity needed to begin filming and carry out projects before receiving incentives and financial payments.

According to details of the agreement announced on September 15 and 16, 2026, the new framework will give eligible productions filmed in AlUla access to debt-financing solutions secured against the cash rebates, grants, incentives and non-repayable sources of support available to the project. The combined support package can reach 50% of eligible production expenditure in AlUla.

How does the new financing model work?

The basic idea does not mean that half of any film’s budget will be paid automatically. Rather, productions that meet the requirements can benefit from a range of incentives and sources of support, then use their contracted receivables as collateral to obtain early liquidity. This is important because producers often incur substantial expenses during filming before rebates or grants arrive at later stages.

The partnership aims to establish a unified and clear mechanism for financial due diligence, giving producers greater ability to plan cash flows during the production of films and series. The model targets content creators in Saudi Arabia and the Middle East and North Africa, as well as international productions seeking to film in AlUla.

AlUla is betting on more than filming locations

The competition is not limited to attracting cameras to the natural and historic landscapes of northwestern Saudi Arabia. Film AlUla is also working to build a production ecosystem that includes modern facilities and purpose-built soundstages, alongside services and financial incentives.

The financing initiative is significant because it adds a practical element to this ecosystem: the ability to convert future incentives into liquidity that helps a project move forward now. For large productions, the timing of funding can be a decisive factor in adhering to filming schedules and contracting crews and suppliers.

Local training and employment included in the agreement

The cooperation also includes structured training and skills-development programs for production crews, as well as local employment initiatives. The stated aim is to build long-term production capabilities, so that the impact of hosting films and series extends beyond the filming period to the development of Saudi expertise capable of working on future projects.

Zaid Shaker, Film AlUla’s acting executive director, said financing remains one of the main challenges facing creatives, particularly emerging talent in Saudi Arabia and the region, noting that the partnership seeks to connect infrastructure and incentives with institutional financing solutions. Alastair Burlingham, co-CEO of Sherborne Media, also pointed to the company’s earlier financing and production of the film Chasing Red in 2026 as a practical foundation for the new cooperation.

Why is the agreement an important step for Saudi cinema?

Attracting global production depends on more than location alone; financing, the speed of procedures, and the availability of crews and infrastructure directly influence the decision over where to film. The agreement could therefore, if it translates into actual financing for eligible projects, strengthen AlUla’s competitiveness as a production destination and give Saudi and regional filmmakers an additional route to accessing capital.

At its current stage, the agreement remains a memorandum of understanding and a financing framework, not an announcement of automatic funding for every production or of a new list of films. Its practical significance will become clearer as projects begin using the new mechanism and its terms and results are announced.

Sources

• Saudi Press Agency (SPA) – Details of the memorandum of understanding between Film AlUla and Sherborne Media, September 15, 2026.
• Arab News – Film AlUla signs memorandum of understanding with Sherborne Media at TIFF 2026, updated September 16, 2026.
• BroadcastPro ME – Details of the film production financing framework, September 16, 2026.