Market Overview

Saudi Arabia's Public Investment Fund's Development & Investment Entertainment Company Signs Agreement with AMC

Share:

Saudi Arabia's Ministry of Culture and Information announced the
first cinema operating license to the Development and Investment
Entertainment Company, a wholly owned subsidiary of the Public
Investment Fund, enabling AMC Cinemas to open and operate in Saudi Arabia

Development and Investment Entertainment Company was fully
incorporated in January 2018 by the Public Investment Fund

Agreement to operate AMC Cinemas in Saudi Arabia builds on MoU
signed with the Public Investment Fund in December 2017

AMC to open its first theatre in Riyadh on April 18, 2018

The Public Investment Fund of Saudi Arabia (PIF) announced today that
its wholly owned subsidiary, the Development and Investment
Entertainment Company, has signed an agreement with AMC to operate AMC
Cinemas in the Kingdom. The Development and Investment Entertainment
Company jointly with AMC expects to open 30-40 cinemas in approximately
15 cities in Saudi Arabia over the next five years, and a total of
50-100 cinemas in approximately 25 Saudi Arabian cities by the year
2030. AMC and the Development and Investment Entertainment Company have
a goal of establishing an approximate 50 percent market share of the
Saudi Arabian cinema industry.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180404005929/en/

King Abdullah Financial District in Riyadh (atrium top) building where the first movie theatre will  ...

King Abdullah Financial District in Riyadh (atrium top) building where the first movie theatre will be located. (Photo: Business Wire)

Alongside this, the Saudi Ministry of Culture and Information has
announced that it has granted the first cinema operating license to the
Development and Investment Entertainment Company, allowing AMC to
operate movie theatres in Saudi Arabia.

After a 35-year ban on cinemas in the Kingdom of Saudi Arabia, the
Development and Investment Entertainment Company jointly with AMC will
open its first theatre in Riyadh in the King Abdullah Financial District
on April 18. This will be the first theatre to open in Saudi Arabia in
several decades.

AMC is the world's largest provider and operator of movie theatres.
AMC's entry into the Kingdom of Saudi Arabia is in concert with a key
objective of Vision 2030, which is to grow the entertainment sector in
Saudi Arabia. As a result, the cinema industry is expected to grow to
around $1 billion in size over the coming years.

The Development and Investment Entertainment Company was fully
incorporated early this year to play an active investment role in
various areas of the entertainment sector, and seek to attract strategic
partnerships to build the eco-system within the Kingdom.

About PIF

PIF seeks to become one of the largest and most impactful sovereign
wealth funds in the world, enabling the creation of new sectors and
opportunities that will shape the future global economy, while driving
the economic transformation of Saudi Arabia.

To achieve this, PIF is building a world-class, diversified portfolio
through investments in attractive, long-term opportunities across
sectors and asset classes at both the domestic and international level.
Working alongside global strategic partners and renowned investment
managers, PIF acts as the Kingdom's main investment arm to deliver a
strategy focused on achieving attractive financial returns and long-term
value for the Kingdom of Saudi Arabia, in line with Vision 2030.

In October 2017 at the Future Investment Initiative, the PIF Program
(2018-2020) was launched as part of the Kingdom's Vision 2030 Vision
Realization Programs (VRP). The PIF Program is one of twelve VRPs and
acts as a roadmap for the next three years to strengthen PIF's position
as the engine behind economic diversification in the Kingdom and role in
transforming Saudi Arabia into a global investment powerhouse. The
program will see PIF's Assets Under Management increase to over $400
billion by 2020 and outlines how PIF aims to complement private sector
development in the Kingdom through its new domestic investment, split
between PIF's Saudi Holdings, Saudi Sector Development, Saudi Real
Estate & Infrastructure Development, and Saudi Giga-Projects.

About AMC

AMC (NYSE:AMC) is the largest movie exhibition company in the U.S., in
Europe and throughout the world with approximately 1,000 theatres and
11,000 screens across the globe. AMC has propelled innovation in the
exhibition industry by: deploying more plush power-recliner seats;
delivering enhanced food and beverage choices; generating greater guest
engagement through its loyalty program, web site and smart phone apps;
offering premium large format experiences and playing a wide variety of
content including the latest Hollywood releases and independent
programming. AMC operates among the most productive theatres in the
United States' top markets, having the #1 or #2 market share positions
in 22 of the 25 largest metropolitan areas of the United States,
including the top three markets (NY, LA, Chicago). Through its Odeon
subsidiary AMC operates in 14 European countries and is the #1 theatre
chain in UK & Ireland, Italy, Spain, Sweden, Finland and the Baltic
States. www.amctheatres.com.

View Comments and Join the Discussion!