MDJM LTD (NASDAQ:UOKA) said the animation and broader creative industries across the UK and Europe are benefiting from increasing policy support and economic importance, as governments place greater emphasis on cultural production as a driver of growth and innovation.
The company noted that the UK’s creative industries are widely regarded as one of the country’s most dynamic economic sectors. According to official statistics cited in the House of Lords Library report “Creative industries: Growth, jobs and productivity,” published by the UK Parliament on January 30, 2025, the sector generated more than £124 billion in gross value added (GVA) in 2023. That figure represented over 5% of the UK’s total economic output and supported roughly 2.4 million jobs nationwide.
Given the sector’s sustained contribution to the economy, successive UK governments have identified creative industries—including film, television, animation, design and digital media—as a key pillar of the country’s long-term economic strategy.
UK incentives supporting animation and screen production
Within this framework, the UK has developed one of the most structured policy environments globally for screen production and animation.
Under the Audio-Visual Expenditure Credit (AVEC) system, animated films and television productions may qualify for a 39% expenditure credit on eligible production costs, subject to certification and eligibility requirements. The policy forms part of broader reforms to the UK’s creative-industry tax relief framework aimed at attracting international production while strengthening domestic creative capabilities.
The UK government has also expanded incentives for visual-effects production. Beginning in 2025, qualifying UK VFX spending for film and high-end television projects can receive a 39% credit, while previous caps on eligible VFX expenditures have been removed. The measures are intended to reinforce the UK’s position as a global center for digital production, animation and visual-effects technologies.
Together, these initiatives position the UK among the most competitive international destinations for animation and audiovisual development.
Scotland expanding its creative economy
Within the UK, Scotland has increasingly emphasized the creative sector as a central element of its economic and cultural development strategy.
The country’s creative economy spans industries such as film, television, animation, design, video games and digital media. Collectively, these sectors contribute billions of pounds annually to the national economy while supporting tens of thousands of jobs.
Public agencies including Screen Scotland and Creative Scotland have expanded initiatives to increase production capacity, nurture creative talent and strengthen infrastructure within the screen sector.
At the same time, cultural venues and production facilities have become an increasingly important part of Scotland’s strategy to attract international projects and support long-term industry development.
European policy framework for animation
Beyond the UK, the animation and audiovisual sectors across Europe operate within a well-developed policy ecosystem designed to support cultural production and international cooperation.
At the European level, the European Union’s Creative Europe program serves as the flagship initiative supporting audiovisual and cultural industries. The program promotes cross-border collaboration among studios, producers and cultural institutions while encouraging the global distribution of European creative works.
In addition, national governments across Europe have expanded incentive schemes, co-production agreements and cultural funding programs to strengthen animation and audiovisual production. These initiatives have helped create a highly interconnected European animation ecosystem, where studios and creators frequently collaborate across borders.
Animation gaining strategic importance
The increasing policy attention toward animation across Europe reflects broader changes in the global creative economy.
Animated storytelling has become a key component of the modern media landscape, spanning theatrical releases, streaming platforms, digital media and cultural programming. As demand for high-quality narrative content continues to grow worldwide, policymakers and industry groups have increasingly identified animation as both a cultural medium and a high-value economic sector.
MDJM said the strengthening policy environment across the UK and Europe provides favorable conditions for the continued development of animation projects and international creative collaboration.
The company believes that structured incentives, expanding public investment in cultural infrastructure and a highly interconnected European animation ecosystem will continue to support the sector’s long-term growth.
Against this backdrop, MDJM said it remains confident that its strategy—combining cultural infrastructure, creative production and digital platforms—will generate long-term cultural and economic value.
About MDJM LTD
MDJM LTD (NASDAQ:UOKA) is a global cultural innovation company focused on cultural intellectual property development, animation production, international licensing and cultural venue operations.
The company has been expanding its activities in the UK, including projects such as Fernie Castle in Scotland and the Robin Hill property in England. These locations are being redeveloped into multi-purpose cultural venues offering hospitality services, fine dining, art exhibitions and cultural exchange programs.
As part of its broader strategy, MDJM is also collaborating with selected European animation studios to produce animated short films that combine Eastern storytelling traditions with Western artistic techniques.
The company aims to integrate Eastern philosophy with global creative practices to build a cross-cultural storytelling ecosystem centered on immersive cultural experiences, while expanding its international market presence.