AUG 5, 2018 (BE2C2 Report): Majid Al Futtaim’s cinemas in Saudi Arabia have achieved a 95% occupancy rate since their inauguration in April, CEO of Majid Al Futtaim Cinemas Cameron Mitchell told Russia’s Sputnik news agency.
Saudi cinemas have received 75,000 visitors of different ages, Mitchell added.
The U.A.E.-based Majid Al Futtaim’s Vox Cinemas is investing SAR 2 billion in the Saudi cinema sector to open 600 new screens in the kingdom within the coming 5 years, the top official revealed.
Since April when Saudi Arabia’s culture and information minister Awwad al-Awwad opened the first cinema theater in the GCC country in 35 years, two more cinema operators announced of their foray in the Kingdom’s growing entertainment industry.
U.S. headquartered AMC Theaters has partnered with Public Investment Fund (PIF) to open 30 to 40 cinemas in 15 cities in the next five years and 50 to 100 cinemas in total in about 25 cities by 2030.
Third licensee is Al Rashed Empire Cinema Consortium which has received a license to operate cinemas in the kingdom.
According to the agreement, Al Rashed Empire Cinema will open 30 new theaters in various cities across Saudi Arabia.
Development and Investment Entertainment Company (DIEC), a wholly owned subsidiary of PIF plans to invest $2.7 billion (SAR10 billion) by 2030, in a move to boost the entertainment industry in the country that hosted its first-ever Arab Fashion Week in April 2018.
Cinema operators have flocked to Saudi upon the lifting of the ban, hoping to cash in on the massive consumer market.
Dubai-based VOX Cinemas too has agreed to invest over $540 million (SAR 2 billion) to open 600 screens in the next five years in Saudi Arabia. Seoul headquartered CJ 4DPLEX inked a deal with Middle East-based cinema operator Cinemacity to open three 4DX cinema locations in Riyadh, the kingdom’s capital city and other Saudi cities by the end of this year.
An agreement was signed earlier this year between Vue Cinemas and Al Hokair Holding Group to establish theaters in the kingdom.
With increasing investments in the entertainment market, Saudi is aiming to generate revenues from household spending that mostly comes from its youth that constitutes 70% of the overall population.