The Public Investment Fund of the Kingdom of Saudi Arabia (PIF) today announced the signing of a non-binding Memorandum of Understanding (MoU) with AMC Entertainment Holdings, Inc, the world’slargest provider and operator of movie theaters.
In line with the Fund’s mandate to help unlock promising new sectors within the Kingdom, PIF and AMC Entertainment will explore theatrical exhibition and related investment and partnership opportunities in the Kingdom of Saudi Arabia.
The agreement builds on the announcement of the General Commission for Audiovisual Media’s (GCAM) decision to grant domestic licenses to cinema providers, and directly supports the Vision 2030 objective of growing household spending on entertainment from 2.9% to 6.0% of GDP.
A spokesperson from PIF, said: “PIF sees huge potential in the Kingdom’s entertainment sector. We look forward to working with AMC Entertainment Holdings to explore opportunities in developing an industry that isexpected to be around USD 1Bn in size.”
“This announcement is an historic moment for the theatrical exhibition industry and a tremendous opportunity to connect AMC’s movie products with the Kingdom of Saudi Arabia’s more than 30 million citizens, many of whom we know are movie fans based on their regular visits to cinemas in neighboring countries,” said AMC CEO and President, Adam Aron. “The Kingdom of Saudi Arabia represents a lucrative business opportunity for AMC Entertainment, and no one does the cinema experience on a global scale better than AMC. As such we believe AMC is in a unique position to put the industry’s best foot forward in expanding the magic of the movies to an important country that is in the process of opening up entertainment opportunities for its citizens.”