According to a research by PwC Middle East, a global advisory firm, the total cinema revenue in Saudi Arabia is expected to reach $1.5 billion annually by 2030.
“By 2030, Saudi Arabia is expected to host 2,600 cinema screens that will entertain its growing population,” Dr. Martin Berlin, Middle East Partner and Global Deals Real Estate Leader at PwC Middle East, told delegates at the two-day MENA Cinema Forum that concluded on Monday.
“Based on global and regional benchmarks, we expect the KSA to accommodate between 300 and 370 cinema locations.”
Dr. Berlin based his projection on a projected 2030 population of 39.5 million, and 6.6 screens per 100,000 people.
“Based on the pricing of $11–$14 for lower end formats, and $40 for luxury formats, the KSA 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,” Dr Martin Berlin added.
“The cinema industry in the Gulf Cooperation Council (GCC) is coming of age with Saudi Arabia — the largest Arab economy. Opening the market means massive opportunity for all industry stakeholders,” Leila Masinaei, Managing Partner of Great Minds Events, organizer of the MENA Cinema Forum, said.
“Saudi Arabia’s Development Investment Entertainment Company (DIEC) which is armed with a budget of SR10 billion for the development and expansion of the cinema screens across the Kingdom, is acting as a catalyst in the development of the cinema sector that is projected to directly contribute SR1 billion to the Saudi Arabia’s gross domestic product (GDP).”
Majid Al Futtaim, which operates 355 cinema screens, is investing Dh2 billion in adding 600 cinema screens in Saudi Arabia.
Source Credit: Saudi Gazette