Saudi Arabia's MBC Group invests in Anghami

The Saudi media colossus MBC Group has secretly captured a 13.7% stake in Anghami, the leading music streaming platform in the MENA region.

The transaction, executed through MBC Ventures, involved the acquisition of over 4 million ordinary shares, as revealed in Anghami's filing with the US Securities and Exchange Commission. Although the financial specifics remain under wraps, the purchase is estimated at around $4.074 million, based on Anghami's stock value prior to the public announcement of the deal.

The revelation of MBC's investment spurred a remarkable 59% surge in Anghami's stock price on March 20, elevating the market valuation of MBC's stake to approximately $6.48 million. This peak in share price marked Anghami's highest since mid-December 2023.

Ownership of MBC group is split, with the Saudi Arabian government controlling 60%, and the remaining equity belonging to founder Waleed bin Ibrahim Al Ibrahim.

The Saudi Arabian government's investment in the entertainment sector is seen with mixed perceptions globally. On one hand, it is viewed as a progressive move towards diversifying the economy and reducing dependency on oil, aligning with the Vision 2030 plan that aims to build a vibrant society and thriving economy.

On the other hand, there are concerns and criticisms related to the concept of "cultural whitewashing" or using entertainment as a tool to improve the country's image amidst various human rights controversies.

While the investment in Anghami is a clear indicator of Saudi Arabia's commitment to expanding its influence in the entertainment sector, it also contributes to the ongoing debate about the objectives and consequences of such investments.