US-based AMC Entertainment Holdings (NYSE:AMC) has become the first theatre operator in the world to obtain an operating license in Saudi Arabia, after a 35-year ban.
Saudi Arabia’s Ministry of Culture and Information made the announcement on Wednesday and, according to AMC’s press release, “the granting of the first license marks the opening of very significant opportunities for exhibitors” in Saudi Arabia.
The groundbreaking move to bring theatres back to Saudi Arabia will give the Kingdom “350 cinemas, with over 2,500 screens, by 2030.”
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Vision 2030 is the Kingdom’s social and economic reform program and is lead by His Royal Highness the Crown Prince Mohammed bin Salman.
The plan hopes to increase the average Saudi family’s annual spending on entertainment and cultural activities from 2.9% to 6%, by 2030.
Dr. Awwad Alawwad, the Minister of Culture and Information said, “the Saudi market is very large, with the majority of the population under the age of 30 and eager to watch their favorite films here at home.”
The first theatre is set to open on April 18 in the Kingdom’s capital city, Riyadh.
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AMC’s CEO and President, Adam Aron, has said that the company is looking “forward to serving the people of Saudi Arabia with truly world-class theaters all across the Kingdom.”
The opening of these theatres will open up a new domestic market that is said to bring in approximately $1 billion USD in annual box office sales.
Shares of AMC have risen since the announcement was made and show a gradually increasing trend.
The company closed at $16.35 USD on Thursday, a 6.17% increase from what the company opened at.
As of 9:30am (PDT) this morning, AMC was sitting at $16.40.
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