Fresh off closing a $1 billion investment deal with Abu Dhabi’s Sovereign Wealth Fund, Sotheby’s is rolling out its regional strategy with a headline-grabbing announcement: the first-ever auction by the house—and the first international auction—in Saudi Arabia is set for February 8. Scheduled to take place in Diriyah, just outside Riyadh, a location described by Sotheby’s in their press release as “the ancestral heart of the nation,” the two-part evening auction promises to be eclectic in its offerings. Alongside Saudi fine art and masterpieces from the international art canon, Sotheby’s will also showcase collectible luxury items, from jewelry and watches to cars, sports memorabilia and handbags.
“This is a very dynamic time for culture in Saudi Arabia,” according to Sotheby’s CEO Charles F. Stewart, who added in a statement that the auction house “has been active in the Kingdom for a number of years now, and we’ve witnessed the blossoming of the cultural scene with great interest. In committing to a physical presence in Riyadh, we’re supporting the enrichment of the country’s artistic landscape, which will empower the large youth demographic of Saudi Arabia.”
Indeed, Sotheby’s has laid the groundwork for this expansion over the past decade, as noted in the detailed press release accompanying the announcement. The auction house has already hit the rostrum for charity auctions, backed the Kingdom’s first Contemporary Art Biennale in 2022, supported last year’s inaugural Islamic Arts Biennale in Jeddah and partnered with the Diriyah Biennale Foundation on the public program for their 2024 inaugural edition. The auction house’s steady presence has arguably helped nurture Saudi Arabia’s cultural scene, offering the expertise and education needed to pave the way for a robust art market presence in the region.
Meanwhile, it’s no secret that Saudi Arabia has been aggressively investing in a transition from its oil-centric economy to becoming a global hub for art and culture, all part of the Saudi Vision 2030 initiative.
A standout aspect of Sotheby’s debut sale in Saudi Arabia is its multi-category format, which will offer both art and luxury items—responding to regional demand and signaling the company’s evolution beyond traditional auctions into a full-fledged luxury brand. Sotheby’s has steadily revealed this shift in recent months with its new headquarters in Hong Kong and Paris, which are more akin to luxury boutiques than conventional auction houses. Collectively branded “Another World,” these moves mark a strategic diversification aimed at attracting a new generation of luxury consumers and tapping into emerging trends in high-end spending, especially among younger, affluent demographics across regions. The Middle East’s luxury market alone is valued at approximately €15 billion, projected to double by 2030, and Abu Dhabi has recently been named the region’s wealthiest city with a $1.7 trillion valuation as of October 2024.
In New York, Sotheby’s headquarters is set to follow this transformative path. Earlier this month, the auction house officially announced its acquisition of the iconic Breuer Building (formerly the Met Breuer and originally the Whitney Museum), finally sealing the $100 million deal after a lengthy negotiation. Led by architectural luminaries Herzog & de Meuron, the building’s major renovation will transform it into a “world-class gallery space” showcasing Sotheby’s full suite of offerings—likely structured to deliver an immersive luxury experience, in line with its recently revamped global spaces.
Not to be left behind, Christie’s has also upped its game in the Middle East, recently announcing a major move into the region by securing a commercial license to operate in Saudi Arabia and appointing renowned local art consultant and patron Nour Kelani as its head. Although no opening date has been set for a Riyadh office, Christie’s—which already has a base in Dubai—has positioned itself strategically by appointing Kelani, who brings a wealth of experience and a robust network in the Saudi art scene, where she has been a prominent advocate for contemporary art.
Auction houses aren’t the only ones eyeing the region’s surging wealth; rumors suggest that Art Basel, another art world heavyweight, is in talks to run the Abu Dhabi Art Fair. In a twist, Art Basel wouldn’t need to invest its own capital but instead would receive a $20 million investment to oversee the fair, according to ARTnews.
The potential future partnership follows a past stumble: in 2019, the fair abruptly canceled a three-day, $15,000-per-ticket conference just two months after it was announced. Organized in partnership with MCH Group and Abu Dhabi’s Department of Culture and Tourism, Art Basel Inside was curated by Marc-Olivier Wahler, director of Geneva’s Museum of Art and History, and promised a high-profile lineup of global cultural figures discussing pressing issues. At the time, a spokesperson cited an overly ambitious timeline as the reason for the cancellation, noting that MCH was also reportedly hesitant to invest in regional fairs. But with shifting economic tides and a more robust financial landscape, it seems that Art Basel may be rethinking its regional strategy.
While Art Basel expands, Frieze is reportedly for sale
While Art Basel considers further expansion, Frieze appears to be facing stormier prospects. Rumor has it that Frieze’s parent company, the Hollywood entertainment conglomerate Endeavor, is considering selling parts of its portfolio, including the Frieze art fairs (in London, New York, L.A. and Seoul), the magazine and its London exhibition venue, No. 9 Cork Street. Observer spoke with a member of the senior team at Angus Montgomery Arts, the arts branch of Montgomery Group, who confirmed the sale rumors but added that while the group is evaluating Frieze’s assets, it’s unlikely they’ll put in a bid. With over four decades in the events business, Montgomery Group’s art division owns several notable fairs, including India Art Fair, Photo London, Art SG Singapore, Tokyo Gendai, Taipei Gendai and Art Düsseldorf.
Meanwhile, it came out that Endeavor has engaged the boutique investment bank, The Raine Group, to oversee the exploratory process. This collaboration has already led to a $3.25 billion deal with TKO Group for the sale of three sports assets, with TKO still majority-owned by Endeavor. Last week, Endeavor reported a third-quarter net loss of $420.4 million, citing significant downturns in its events, experiences, rights and sports data & technology segments, though revenues in its Owned Sports and Representation segments jumped 66 percent. Earlier this year, it was announced that Silver Lake plans to take Endeavor private at a $13 billion equity valuation, with the transaction expected to close in the first half of 2025, according to Reuters. This anticipated change in ownership has prompted Endeavor to scrutinize its portfolio, reviewing the profitability of various assets—including, perhaps, Frieze—and considering divestments where necessary.