MENA cinema industry set to grow


October 29, 2018 | By RetailME Bureau

Globally, the number of cinema screens has crossed 150,000. In the MENA region, the number of cinema screens is expected to jump 38.4% with 1,300 new cinema screens to be set up, mainly in Saudi Arabia, indicates global advisory firm PwC Middle East.

PWC’s another research shows that, in the MENA region, box office revenue exceeded $500 million (AED1.83 billion). This is about 1.25% of the global box office revenue of $39.92 billion recorded last year, up 3% from 2016. More than $3.54 billion investment in cinema screens across the Gulf is expected to boost the region’s cinema industry.

With cinemas opening up in the Kingdom of Saudi Arabia after three decades, the total cinema revenue in the Kingdom is expected to touch $1.5 billion (AED5.5 billion) in 2030, estimates PwC Middle East.

“By 2030, Saudi Arabia is expected to host 2,600 cinema screens that will entertain its growing population,” says Martin Berlin, Middle East partner and Global Deals Real Estate leader at PwC Middle East. “Based on global and regional benchmarks, we expect the KSA to accommodate between 300 and 370 cinema locations.”

Berlin’s estimation is based on a projected 2030 population of 39.5 million, and 6.6 screens per 100,000 people.

“Based on pricing of $11 – $14 for lower end formats, and $40 for luxury formats – Saudi Arabia could generate $950 million in box office revenues by 2030. As other revenue streams typically account for ~35% of overall revenues, this brings the total to $1.5 billion,” Berlin adds.

The Gulf region will see the development of more than 1,000 new cinema screens in the next three to five years, as developers and cinema operators announced massive investment plan at the first-ever MENA Cinema Forum.

The region has 1,300 cinema screens in operation. The announcement of 1,000 cinema screens will see more than 2,300 cinema screens in operations in the next five years, with the majority of the new screens to open in Saudi Arabia, which has opened the country for cinema theatres.

Majid Al Futtaim, which operates 355 VOX Cinemas screens, is investing AED2 billion in adding 600 cinema screens in Saudi Arabia.

“We will invest $100 million in a year to open 100 cinema screens – part of the AED2 billion plan to open 600 cinema screens in Saudi Arabia in the next three to five years,” shares Cameron Mitchell, CEO, Majid Al Futtaim Cinemas and Leisure & Entertainment. “Overall, we will operate around 1,200 cinema screens across the region in five years’ time – that’s how fast we are going to expand. With Saudi market opening, we see a lot of opportunities in the region’s cinema and entertainment industry.”

“We have opened our first cinema complex in Saudi Arabia in May this year, right after the government announced the opening of the cinema industry for public. We were closely working with the Saudi Arabian Government and as a result were the first operator to open the first cinema screen in the Kingdom,” he emphasises.

According to Mitchell, the company is hiring a large number of Saudi nationals to manage the growth in the Kingdom. “We are employing a large local talent pool to manage our entertainment assets in the Kingdom. We have achieved 98% Saudisation in our operations already.”

Further, Novo Cinemas, which operates 124 screens in 10 locations with 19,000 seats, will add more cinemas in the next few years.

“Although I do not have a budget in my mind, we will could potentially operate 1,000 cinema screens five years down the line, depending on how the market evolves,” states CEO Debbie Stanford-Kristiansen. “Saudi Arabia is obviously the market that will drive the growth and we are talking to our partners to open as many screens as the market demands.”

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



Union Coop, a consumer cooperative in the UAE, revealed that 78% of 

Continue Reading

August 24, 2021 | By Jibran Chouguley

Union Coop has opened its 23rd branch within the UAE in Jumeirah 

Continue Reading

August 2, 2021 | By Jibran Chouguley

Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and 

Continue Reading

July 8, 2021 | By Jibran Chouguley

UAE-based Al Maya Group announced that it will be boosting import of 

Continue Reading

June 24, 2021 | By RetailME Bureau

UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu 

Continue Reading

June 2, 2021 | By RetailME Bureau

UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto




Download Images RetailME Magazine