Forty cinema theatres will be opened in 15 cities in Saudi Arabia over the coming five years.
The Ministry of Culture and Information signed an agreement with AMC Theaters, bringing back movie theatres to Saudi Arabia 35 years after a ban was imposed in the 1970s.
The deal authorises AMC Theaters to open its first movie theatre in the Saudi capital Riyadh on April 18.
The giant US entertainment company signed a memorandum of understanding with the Public Investment Fund in November 2017 to discuss potential trade co-operation opportunities.
Saudi Arabia, with a population of 32 million, mostly under the age of 30, is expected to be the region’s largest market for movie theatres, said Arab News.
AMC Theaters is an American movie theater chain owned and operated by Wanda Group. Founded in 1920, AMC has the largest share of the American theatre market ahead of Regal Entertainment Group and Cinemark Theaters.
Last December, the Ministry of Culture and Information announced that commercial cinemas would be allowed to operate in the kingdom starting from 2018, for the first time in more than 35 years.
Riyadh authorities are planning to open 350 cinemas with more than 2,500 screens by 2030.
According to the Minister of of Culture and Information Dr Awad bin Saleh Al Awad said that granting the first licence would provide important investment opportunities for the cinema industry.
He pointed out that the Saudi market is large and most of the population is under the age of 30, so they are eager to watch their favourite films in their country.
In a statement to Reuters yesterday, he said that cinemas would not not require men and women to sit separately.
Under the Vision 2030, Saudi is planning to raise the annual spending on cultural and recreational activities from 2.9 per cent of total Saudi household spending to 6pc by 2030.
AMC’s entry into the Saudi Arabian market comes in partnership with the Public Investment Fund (PIF) through its wholly-owned Leisure Development and Investment Company.
The move to allow movie theatres to open up a local market with annual ticket sales of up to $1bn is what makes other leading movie chains keen to enter the largest market in the Gulf region.