Market Trends of Saudi Arabia Entertainment And Amusement Industry
Cinema Revolution is Expected to Drive the Market Growth in the Forecast Period
- The Kingdom's decision to lift the 35-year ban on cinemas, in December 2017 has opened opportunities for international and regional companies to help develop the domestic entertainment industry. Also, the country has the largest population among GCC countries, with around 60% under the age of 34 years who are potential customers for the cinema market.
- The Public Investment Fund has taken the initiative to lead the local cinema industry by signing a joint venture deal between DIEC and the US cinema chain AMC Entertainment to open cinemas in the Kingdom, with the first movie theatre opened in Riyadh in 2018, and around 30 movie theatres are already opened in 15 cities around the Kingdom.
- The announcement of this joint venture was followed on April 2022 by the news that Vox Cinemas, a subsidiary of UAE-based entertainment company, Majid Al Futtaim, was awarded the second license to open cinemas in the Kingdom. The company also plans to invest more than 500 million in 600 screens over the next five years, which the officials estimate may bring the total number of cinemas in operation to as high as 350 and the number of screens to 2,500 by 2030.
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Qiddiya Project is Anticipated to Attract More Customers and Help the Market's Growth
- As a part of Vision 2030, the Kingdom laid the foundation stone of the Al-Qiddiya project, the new entertainment, sports, and cultural destination in Saudi Arabia, west of Riyadh, with a total area of 334 square kilometers for six entertainment clusters, including a theme park, sports arenas, motor tracks, water and snow sports facilities, vacation homes, and venues to host cultural activities. Phase one is scheduled for completion in 2023.
- Upon completing this phase, 45 individual projects are to be completed. Moreover, 300 recreational, hospitality, leisure, and sports will be launched, and by 2030, the project is expected to generate some 57,000 jobs and contribute USD 4.53 billion to the GDP. According to PIF, the Qiddiya project aims to attract 17 million entertainment visitors, 12 million shopping visitors, and 2 million hospitality visitors by 2030.
