The Dubai International Film Festival (DIFF) is struggling. Most observers wholeheartedly acknowledge it, yet refrain from discussing the topic much. While the 11th installment of one of the biggest film festivals in the region was not the disaster Dubai’s detractors declared it to be, it was far from successful. Budget cuts and a lukewarm selection made the latest DIFF, which ran Dec. 10-17, the weakest in recent memory, raising questions not only about the festival’s future, but also regarding the general state of Arab cinema.

When the DIFF began in 2003, the cinematic landscape in the region was quite barren, the industry stagnant and funding opportunities sparse. Dubai changed all that, offering generous funds, co-production opportunities and a solid platform for young directors from every corner of the region. It started a revolution for Arab cinema, paving the way for other organizations such as the Doha Film Institute, the Abu Dhabi Film Festival and the Royal Jordanian Film Commission to emerge and establish a solid foundation for new Arab cinema.

There have long been reservations regarding DIFF’s Arab film selection, which has always been inconsistent. Yet, the festival’s ardent support for young voices and new experiments continuously overshadowed these misgivings. The excellent sidebars, including the Asia/Africa competition — widely regarded as the festival’s best feature — gave the DIFF an edge over its competitors.

Glamour and art abounded in the DIFF, a festival that has steadily marched from one success to another. That’s why what happened this year was quite jarring and baffling. The cancelation of the Gulf Film Festival, part of the DIFF franchise, in April 2014 fueled reports of drastic budget cuts. A month later, the DIFF administration denied the rumors, stressing that what occurred was restructuring rather than budget setbacks. During the festival, the press learned that the prizes for acting, directing and screenwriting had all been axed.