Fresh off a $1 billion investment deal with Abu Dhabi’s Sovereign Wealth Fund, Sotheby’s launched its regional strategy with an announcement headlined: the house’s first-ever auction—and first international auction—in Saudi Arabia February 8. Scheduled to take place in Diriyah, just outside Riyadh, a place described by Suthu in their press release as “the heart of the nation’s ancestors,” the two-part evening auction promises to be sophisticated in its offerings. Alongside Saudi fine art and works of art from international art lists, Sotheby’s will also showcase luxury collectibles, from jewelery and watches to cars, sports memorabilia and handbags.
“This is a very dynamic time for culture in Saudi Arabia,” according to Suthu CEO Charles F. Stewart, who added in a statement that the auction site “has been operating in the Kingdom for many years, and we have found it.” he saw the blossoming of the cultural scene with great interest. By committing to a physical presence in Riyadh, we are supporting the development of the country’s arts, which will empower the great youth of Saudi Arabia.”
Indeed, Suthu has laid the foundation for this expansion over the past ten years, as noted in the detailed statement accompanying this announcement. The auction house has already entered the list of charity auctions, supported the first Kingdom Contemporary Art Biennale in 2022, supported last year’s Islamic Arts Biennale in Jeddah and partnered with the Diriyah Biennale Foundation in the community program for their first edition in 2024. The auction house’s consistent presence has helped develop Saudi Arabia’s cultural scene, providing the knowledge and education needed to pave the way for a strong art market presence in the region.
Meanwhile, it’s no secret that Saudi Arabia has been investing heavily in the transformation of its oil-based economy into a global hub for arts and culture, all part of the Saudi Vision 2030 plan. This ambitious transformation includes a $27 billion investment aimed at transforming Saadiyat Island into a popular destination. It is mainly a country of culture and tourism, with new museums such as the Louvre Abu Dhabi, which opened in 2017, and the much-anticipated Guggenheim Abu Dhabi, scheduled for 2026.
A prominent feature of Sotheby’s first sale in Saudi Arabia is its multi-category format, which will offer both art and luxury—responding to regional demand and reflecting the company’s evolution beyond traditional auctions into a full luxury brand. Sotheby’s has gradually signaled this change in recent months as its headquarters in Hong Kong and Paris, more like boutiques than traditional auction houses. Collectively called “One World,” the movement marks a diversification of strategies aimed at attracting a new generation of high-end consumers and tapping into emerging trends in high-end spending, especially among young, affluent people in all regions. The Middle East luxury market alone is worth around €15 billion, expected to double by 2030, and Abu Dhabi was recently named the region’s richest city worth an estimated $1.7 trillion as of October 2024.
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In New York, Suthu’s headquarters will follow this transformation path. Earlier this month, the auction house officially announced its acquisition of the Breuer Building (the former Met Breuer and former Whitney Museum), finally closing the deal for $100 million after lengthy negotiations. Led by architectural luminaries Herzog & de Meuron, the building’s major renovation will transform it into a “world-class gallery space” showcasing the full range of Sotheby’s offerings—designed to deliver an immersive luxury experience, alongside its newly renovated global spaces.
Not to be outdone, Christie’s has also upped its game in the Middle East, recently announcing a major move into the region by acquiring a commercial license to operate in Saudi Arabia and appointing renowned local art consultant and patron Nour Kelani as its head. Although no date has been set for the opening of the Riyadh office, Christie’s—which already has a base in Dubai—has positioned itself well by appointing Kelani, who brings a wealth of knowledge and a strong network to the Saudi art scene, where he has been. a prominent advocate of modern art.
Auction houses aren’t the only ones eyeing the region’s growing wealth; rumors suggest that Art Basel, one of the art world heavyweights, is in talks to host the Abu Dhabi Art Fair. In a twist, Art Basel would not need to invest its money but rather would find out a $20 million investment to oversee the fair, according to ARTnews.
The potential future partnership follows a past setback: in 2019, the conference abruptly canceled a three-day, $15,000-per-ticket conference just two months after it was announced. Organized in collaboration with the MCH Group and the Department of Culture and Tourism in Abu Dhabi, Art Basel Inside is hosted by Marc-Olivier Wahler, director of Geneva’s Museum of Art and History, and promises a high-quality line-up of cultural figures from around the world addressing pressing issues. At the time, a spokesperson cited an overly ambitious timeline as the reason for the withdrawal, noting that MCH was also reluctant to invest in regional shows. But with the changing economic tides and a more robust financial situation, it appears that Art Basel may be rethinking its regional strategy.
While Art Basel is growing, Frieze is reportedly selling out
While Art Basel is considering further expansion, Frieze seems to be facing high expectations. Rumor has it that Frieze’s parent company, Hollywood entertainment conglomerate Endeavor, is considering selling parts of its portfolio, including the Frieze art fairs (London, New York, LA and Seoul), the magazine and the London gallery, No. 9 Cork Street. The Observer spoke to a senior executive at Angus Montgomery Arts, the arts arm of the Montgomery Group, who confirmed the sale rumors but added that while the group was exploring Frieze’s assets, it was unlikely to make a bid. With more than four decades in the events business, Montgomery Group’s art division has hosted several notable exhibitions, including India Art Fair, Photo London, Art SG Singapore, Tokyo Gendai, Taipei Gendai and Art Düsseldorf.
Meanwhile, it has emerged that Endeavor has contacted the boutique’s investment bank, Raine Group, to oversee the evaluation process. This partnership has already led to a $3.25 billion deal with TKO Group for the sale of three sporting goods brands, with TKO still majority owned by Endeavor. Last week, Endeavor reported a third-quarter net loss of $420.4 million, citing significant declines in its events, information, rights and sports data and technology segments, although revenue in its Sports and Entertainment segments jumped 66 percent. Earlier this year, it was announced that Silver Lake plans to take Endeavor private for an equity value of $13 billion, with the transaction expected to close in the first half of 2025, according to Reuters. This anticipated change in ownership has prompted Endeavor to review its portfolio, review the profitability of various assets—including, perhaps, Frieze—and consider divestment where necessary.
