Saudi Arabia is investing in digital theme park start-up HyperSpace, which opened its first site in Dubai last year.
Via the HyperSpace website, the company designs, builds and operates next-generation parks in shopping centres featuring digital and physical entertainment, including gaming.
According to a report by the Financial Times, the kingdom’s Riyadh Season – an annual art and culture festival – has provided the majority of the $55 million of debt and equity raised by HyperSpace.
The latest funding round was led by Galaxy Interactive, a New York-based venture capital firm. It included participation from other international investors.
Shopping centres need to find that “cool factor” to attract visitors, Alexander Heller, co-founder and chief executive of HyperSpace, told the FT. “Today, within that ecosystem, you’re looking at something that’s much more experience-driven.”
The first HyperSpace venue opened in Dubai in December last year. Named Aya, the 40,000-square-foot location can be found in the Wafi City shopping mall.
“There’s a big focus on expanding the business” to the rest of the world, Heller added. “We saw an opportunity in the location-based entertainment space and how that fit into the future of the retail ecosystem.”
HyperSpace plans to open a park in Riyadh in six weeks and another one in Dubai over the next few months.
Next-gen LBE experiences
The new Dubai venue, called House of Hype, will be a 100,000-square-foot attraction in the Dubai Mall. The Saudi park will open in Boulevard Riyadh City in a few weeks as part of Riyadh Season.
Saudi Arabia is creating a series of attractions and giga-projects in a bid to diversify the economy and reduce its reliance on oil.
Earlier this year, the kingdom’s sovereign wealth fund launched a tourism investment company called Asfar. It also released its annual report for 2022, which said its assets under management were more than 2.23 trillion riyals ($594 billion).
Images courtesy of HyperSpace
