Strategic Partnership Opportunity

# Saudi Fireworks Art Manufacture First-Mover Position in Gulf Entertainment Infrastructure

SFAM is building the Gulf region's first integrated fireworks manufacturing facility and world-class entertainment infrastructure. With royal patronage, government authority relationships, and proven technical execution, the company is capturing the $10 billion regional market through local production, permanent entertainment venues, and national-scale celebrations.

$1B
Series A Target
$8B
Year 6 Revenue
2031
Tadawul IPO

## Company Overview

SFAM brings 2,000+ years of Liuyang pyrotechnic expertise to Saudi Arabia's growing entertainment sector, combining Chinese manufacturing know-how with royal connections and government relationships to establish the region's first vertically-integrated fireworks production and entertainment platform.

### Manufacturing Infrastructure

5 specialized warehouses, R&D center, and semi-finished product processing plant with explosive-resistant infrastructure. Serves Gulf, Africa, Eastern Europe, and West Asia through local production and import-export operations.

### Market Position

Prince Turki bin Khalid bin Faisal Al Saud on board. Direct relationships with Ministry of Interior, Civil Defense, chambers of commerce, and GAFT. Only regional manufacturer with royal patronage and government authority access.

### Technical Capabilities

3,000-drone fleet with RTK centimeter precision. Military-grade fiber optic control systems eliminate wireless hijacking risks. SMPTE timecode synchronization for millisecond-accurate multi-site coordination.

### Regional Dominance

First-mover capturing 90%+ of fireworks supply currently imported from China. Replicable model across neighboring countries. Five-year head start on potential competitors with established relationships and proven execution.

### Regulatory Compliance

NFPA 1123, GB 24284, and SIRA standards adherence. Safety Committee with one-vote veto authority. Military-grade security protocols. Extensive audit trail and traceability systems.

### Environmental Standards

Micro-smoke biodegradable materials. Regenerated plant fiber shells. Zero-emission drone technology. Aligns with Saudi Vision 2030 sustainability mandate and meets European environmental testing standards.

## Flagship Project Portfolio

Four high-impact projects establishing SFAM as the Middle East's leading entertainment infrastructure developer and national celebration partner, with multiple revenue streams across B2G, B2B, and B2C segments.

NEOM • Primary Venue

### The Celestial Theater

Desert Shield Sky Theater

Total Investment $100M
Annual Revenue $85-95M
Annual EBITDA $50M
ROI Period 2 Years
Capacity 25,000 seats
Infrastructure 3,000 drones
15 VVIP suites
Fiber optic control
Annual • National Scale

### Saudi National Day

City-Wide Synchronized Display

Site Coverage 30 Locations
Synchronization <1ms GPS
Drone Fleet 2,500 units
Technology 3D Royal Portraits
Sky Waterfalls
AR Integration
Distribution All major cities
Nationwide broadcast
Annual • Global Event

### International Championship

Global Pyrotechnic Competition

Participants 6 Countries
Event Duration 7 Days
Shared Assets 1K drones
160m towers
SMPTE system
Venue Options Jeddah Waterfront
Qiddiya
Boulevard World
Revenue Model Tickets + VIP
Sponsorships
Tourism packages
NEOM • Future City

### Sky Theater

Permanent Entertainment Complex

Location THE LINE
NEOM City
Technology 10K+ drones
Multimedia matrix
360° launch system
Premium Features Michelin restaurant
Bulletproof suites
Helipad access
Safety Standards 400m+ distance
Military-grade fiber
Zero wireless risk
Venue Design 270° amphitheater
20K sqm pool
VIP helipads

## Core Competitive Advantages

SFAM's integrated capabilities create significant barriers to entry through proprietary technology, government relationships, and operational expertise that competitors cannot easily replicate.

### Royal Patronage

Prince Turki bin Khalid bin Faisal Al Saud serves on the board, providing direct government access and preferential positioning for national projects and megadevelopment contracts.

### Local Production

Regional's only facility with 1.3G/1.4G production capability, IOT traceability, explosive-resistant infrastructure, and Nitaqat-compliant workforce development program.

### Military-Grade Systems

Fiber optic control eliminates wireless hijacking. RTK positioning achieves centimeter accuracy. FSK anti-interference maintains 99.99% reliability in complex electromagnetic environments.

### Supply Chain Access

100-200 certified technicians on standby in Liuyang. Class 1 dangerous goods logistics expertise. Exclusive relationships with top-tier eco-friendly manufacturers in China.

### Production Expertise

Director-led approach integrating fireworks, lighting, and laser effects. Professional 3D simulation software. SMPTE timecode generation for millisecond synchronization across multiple sites.

### Execution History

Completed large-scale projects across Gulf countries. Established relationships with NEOM, Qiddiya, and Riyadh Season. Portfolio demonstrates technical capability and government trust.

## 7-Year Growth Path to Tadawul IPO

Growth plan built on first-mover advantages, government relationships, and regional expansion. Revenue projections based on confirmed market demand and contracted projects.

Year 1 (2026)

### Infrastructure Build

Factory construction, warehouse completion, regulatory licensing, team recruitment, and equipment procurement. Foundation for manufacturing and operations.

Revenue: $0 (Construction phase)
Focus: CAPEX deployment
1
Year 1 (2026)

### Market Entry

Manufacturing operations commence. Initial import and production pipeline established. First national celebrations executed.

Goods Value: $20M
Revenue: $80M
2
Year 2 (2027)

### Regional Growth

Gulf country penetration. Expanded production capacity. Multi-city national day celebrations. Championship event launched.

Goods Value: $50M
Revenue: $200M
3
Year 3 (2028)

### Rapid Expansion

Celestial Theater operational. Africa and Eastern Europe entry. Major contracts secured with NEOM and Qiddiya developments.

Goods Value: $200M
Revenue: $800M
4
Year 4 (2029)

### Market Leadership

Dominant regional position. Western Asia expansion complete. Portfolio across B2C, B2B, and B2G segments.

Goods Value: $500M
Revenue: $2B
Milestone: IPO preparation begins
5
Year 5 (2030)

### Peak Operations

Maximum operational efficiency. Model proven across 12+ countries. Business stabilization and optimization.

Goods Value: $1B
Revenue: $8B
Status: IPO-ready
6
Year 6 (2031)

### Public Listing

Tadawul IPO execution. Mature operations with stable revenue. Continued expansion into new market segments.

Goods Value: $1B
Revenue: $8B stable
Focus: New market development
7

## Investment Structure

Series A fundraising to accelerate infrastructure development, manufacturing scale-up, and regional market capture with clear path to public listing.

Fundraising Target
$1B
Investment or Debt Structure
Pre-Money Valuation
$5B
Conservative Multiple
Equity Release
51%
Majority Control Available

### Capital Deployment

### Manufacturing Infrastructure

5 specialized warehouses with explosive-resistant barriers. Semi-finished product processing plant. R&D design center. Pre-work assembly operations for show setup and execution.

### Inventory & Supply

Strategic stockpile of semi-finished products from Liuyang manufacturing base. Separated storage for 1.4G consumer fireworks and 1.3G display fireworks. Eco-friendly materials procurement and testing.

### Market Development

Gulf countries market penetration and local partnerships. African nations distribution network establishment. Eastern European market entry. West Asia positioning and government relationship building.

### Technology & Equipment

3,000+ drone fleet expansion and maintenance infrastructure. Military-grade control systems and fiber optic networks. RTK positioning base stations. Multimedia production and synchronization equipment.

## $10 Billion Market Opportunity

SFAM targets dominant share of an underserved region experiencing demand growth from Vision 2030 entertainment expansion, megaproject development, and established cultural celebration traditions.

### Geographic Distribution

Primary Markets: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman
Secondary Markets: Egypt, Morocco, Kenya, South Africa
Tertiary Markets: Eastern Europe, Pakistan, West Asia

### Customer Segments

Government (B2G): National celebrations, city festivals, government events and ceremonies
Business (B2B): Tourist attractions, megaprojects, luxury brand launches
Consumer (B2C): Consumer fireworks, weekend shows, private events

### Growth Drivers

Vision 2030 entertainment mandate requiring cultural infrastructure. NEOM, Qiddiya, Red Sea megaprojects needing entertainment content. Tourism sector expansion targeting 100M annual visitors. Regional celebration culture with government support.

### Entry Barriers

Only regional manufacturer with production capability. Royal family board representation. Government authority relationships at Ministry level. Proven technical execution record. Proprietary military-grade technology systems.

### Revenue Potential

Permanent Venues: $50M+ per facility annually
National Events: $20-50M per celebration
Championships: $15-30M annual revenue
Manufacturing: Billions in regional supply

### Expansion Model

Replicable approach proven across Gulf countries. Franchise potential for African markets. Licensing opportunities in Eastern Europe. Joint venture structures for Asia expansion.

## Risk Management & Mitigation

### Regulatory Compliance

Risk: Complex licensing and safety requirements
Mitigation: Safety Committee with one-vote veto power. Direct relationships with Ministry of Interior, Civil Defense, SIRA. Established compliance record. Dedicated government relations and HSE teams.

### Safety & Liability

Risk: Catastrophic event or accident
Mitigation: Military-grade fiber optic control eliminates wireless risks. Public liability insurance coverage. NFPA 1123 and GB 24284 compliance. Redundant safety systems. Extensive training programs.

### Currency & Financial

Risk: Multi-currency exposure (SAR, USD, CNY)
Mitigation: Cross-border hedging strategies. Natural hedges through balanced import-export. Reserves in multiple currencies. Experienced finance team with regional expertise.

### Supply Chain

Risk: Dependency on Chinese suppliers
Mitigation: Local manufacturing capability reduces import dependency. Strategic inventory reserves. Multiple supplier relationships. Class 1 DG logistics expertise. Liuyang reserve team of 100-200 technicians on standby.

### Competition

Risk: New entrants or international competitors
Mitigation: Five-year head start. Royal patronage creates relationship moat. Exclusive government access. Proprietary technology. High capital requirements. Established reputation with proven delivery.

### Operations & Technology

Risk: System failures or technical issues
Mitigation: Triple redundancy systems across all critical infrastructure. RTK positioning with backup systems. Extensive pre-event testing protocols. Emergency response procedures. Liuyang technical support available 24/7.

## Partnership Opportunity

IDR Business Consultancy is managing partner introductions for SFAM's $1 billion Series A fundraising round. This represents an opportunity to invest in the Middle East's first integrated fireworks manufacturing and entertainment infrastructure platform with clear path to Tadawul public listing by 2031.

- First-mover advantage in $10B underserved regional market
- Royal family patronage and Ministry-level government access
- Clear 7-year trajectory to Tadawul public listing
- Proven technical capabilities with executed project portfolio
- Vision 2030 alignment with Saudi national development strategy
- Multiple revenue streams across government, business, and consumer segments