AMC Entertainment Holdings Inc (NYSE:AMC) announced recently that it has signed an agreement with the Saudi Arabian Public Investment Fund (PIF) to provide Cinema service in the Kingdom. The company intends to launch about 30-to-40 cinemas in around 25 Saudi Arabian cities in the next five years in 15 Saudi Arabian cities. The project is set to run for almost a decade ending at the end of 2030. The first movie theatre will be launched in mid April in Riyadh. Majority of the people are expected to attend
The two partners also plan to establish about 50% of the market share in the Saudi Arabian market. The Ministry of Culture and Information has already granted the operating license to AMC to launch its movie theatres in the Kingdom after serving a ban on the cinemas for the last 35 years.
AMC won the first cinema license that comes a time when the conservative kingdom is planning to regenerate its movie theatres after enduring a ban that took more than three decades to be lifted.
The lift on the ban of the cinema and related services has been fueled by the recent reforms in the Kingdom that have been spearheaded by Crown Prince Mohammed bin Salman who believes that the entertainment sector can help boost the country’s economy and particularly in cutting down the reliance on oil.
AMC will collaborate with the Development and Investment Entertainment Company (DIEC) to reopen the theatre in King Abdullah Financial District in Riyadh this month. AMC is one of the leading providers of the movie theatres across the globe. Saudi Arabia expects to develop its entertainment industry in the country, which is estimated to expand to over $1 billion in the near future.
DIEC has been given the mandate to take up vibrant projects in a number of key areas of the entertainment industry and it’s search for strategic partnerships as it embarks on building the long lasting ecosystem in the Kingdom.
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