The Ministry of Culture and Information—Saudi Arabia has inked a deal with AMC for opening around forty cinemas in the fifteen cities of the Kingdom over the span of next five years.
The agreement is the first of its kind and would permit one of the world’s largest film firms, for operating cinemas in Saudi Arabia.
Under the license AMC is intending to open its very first new movie theatre in the capital city of Saudi Arabia—Riyadh on the 18th of April.
The company has signed a memorandum of understanding with the Public Investment Fund back in the year 2017 for discussing the possible trade cooperation opportunities.
Saudi Arabia has an approximate population of thirty-two million, with most under the age of thirty is expected to become the region’s biggest market for cinemas and movie theatres.
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Back in December 2017, the Ministry of Culture and Information made an announcement that the commercial cinemas would be permitted to operate in Saudi Arabia from 2018, for the first time ever in the span of more than thirty-five years.
Approximately three hundred and fifty cinemas with more than two thousand five hundred screens would be opened by 2030.
Dr Awad bin Saleh Al-Awad—the Minister of Culture and Information said that giving the license has provided significant investment opportunities for the cinema industry.
He indicated that the opening of cinemas would assist the local economy and would contribute to the making of new jobs.
As per the reports of Reuters on Wednesday, the cinemas would not require men and women to sit separately.
The 2030 Vision has set a target of taking the yearly spending on cultural and recreational activities from 2.9 percent to 6 percent by 2030.
Adam Aron—CEO of AMC, informed that the firm is following with great appreciation the innovative movement of development projects in Saudi Arabia for opening new economic sectors.
AMC Theatres in an American movie theatre chain which is owned and managed by Wanda Group. It was founded in the year 1920. It has got the largest share of the American theatre market leading the Regal Entertainment Group and Cinemark Theatres.
The move for opening the movie theatres would open the local market with the yearly ticket sales of about $ 1 billion which is what that urges other leading movie chains eager to enter the Gulf region’s largest market.