Global Chain AMC First to Enter Cinema Sector in Saudi Arabia
April 04 2018 - 2:09PM
Business Wire
U.S.-based AMC has received the first cinema
license to open and operate cinemas in the Kingdom
After a 35-year ban on cinemas in the Kingdom
of Saudi Arabia, AMC expects to open its first theater in Riyadh on
April 18
With a population over 32 million people, the
Kingdom constitutes the largest market in the Arab Gulf region and
could constitute a USD $1 billion movie market
(CIC) – Saudi Arabia’s Ministry of Culture and
Information announced on Wednesday that it granted the first cinema
operating license so that U.S. industry leader AMC,
the largest theatrical exhibitor in the world, can operate
cinemas in Saudi Arabia.
AMC plans to open the Kingdom’s first cinema theater, in Riyadh,
on April 18. This follows the signing of a memorandum of
understanding (MoU) between AMC and the Public Investment Fund
(PIF) in December 2017 to explore potential trade cooperation
opportunities.
With a population of more than 32 million, the majority of whom
are under the age of 30, Saudi Arabia is set to become the largest
market for movie-goers in the Arabian Gulf region.
In a landmark decision in December, the Ministry of Culture and
Information announced that commercial cinemas would be allowed to
operate in the Kingdom from early 2018, for the first time in more
than 35 years. The decision is part of Saudi Arabia’s social
and economic reform program under Vision 2030, spearheaded by His
Royal Highness the Crown Prince Mohammed bin Salman, who is
currently on an official visit to the United States.
The Kingdom is set to have nearly 350 cinemas, with over 2,500
screens, by 2030.
“The granting of the first license marks the opening of very
significant opportunities for exhibitors. The Saudi market is very
large, with the majority of the population under the age of 30 and
eager to watch their favourite films here at home,” said Dr. Awwad
Alawwad, Minister of Culture and Information.
“The aim of Saudi Vision 2030 is to improve the quality of life
for Saudi families by providing an array of entertainment
opportunities. The restoration of cinemas will also help boost the
local economy by increasing household spending on entertainment
while supporting job creation in the Kingdom,” Dr. Alawwad
said.
Vision 2030 has established a goal of increasing annual Saudi
spending on cultural and entertainment activities from the current
2.9% of total household expenditure to 6% by 2030.
Adam Aron, CEO and President of AMC Entertainment said, “AMC has
been extraordinarily impressed by the imagination to move Saudi
Arabia forward as detailed in Vision 2030, and we have been
emboldened by the professional, gracious and warm welcome we have
received from the Ministry of Culture and Information, from the
Public Investment Fund and from every Saudi institution and
individual with whom we have been in contact. We greatly look
forward to serving the people of Saudi Arabia with truly
world-class theaters all across the Kingdom.”
AMC’s entry into the Kingdom of Saudi Arabia is occurring in
partnership with the Public Investment Fund through its subsidiary,
the Development and Investment Entertainment Company.
The move to allow movie theaters opens up a big domestic market,
which could approach up to USD $1 billion in annual box office
sales, which leading cinema chains are keen to break into as it is
the largest market in the Arabian Gulf region.
About AMC
AMC (NYSE:AMC) is the largest movie exhibition company in the
U.S., Europe and throughout the world with approximately 1,000
theaters and 11,000 screens across the globe. AMC operates among
the most productive theaters in the United States' top markets,
having the #1 or #2 market share positions in 22 of the 25 largest
metropolitan areas of the United States, including the top three
markets (NY, LA, Chicago). Through its Odeon, subsidiary AMC
operates in 14 European countries and is the # 1 theatre chain in
UK & Ireland, Italy, Spain, Sweden, Finland and the Baltic
States. www.amctheatres.com.
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AMC EntertainmentFrank Ybarra, +1 913-213-2604Vice
President Communicationsfybarra@amctheatres.com@amctheatresorThe
Center for International Communication, Ministry of Culture and
Information, Kingdom of Saudi Arabia;+966 59 545
5467cic@moci.gov.sa@CICSaudi
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