Saudi AMC cinema: SEVEN takes 100% ownership of movie chain in blockbuster deal

PIF-owned SEVEN has acquired AMC’s equity stake in the cinema business in Saudi Arabia to gain full ownership.

SEVEN will also retain intellectual property rights and plans to keep the AMC Cinemas brand name in the Saudi market.

AMC cinema in Saudi Arabia

The acquisition comes at a critical time as SEVEN prepares itself for the massive operations of developing 21 integrated entertainment destinations to fulfil the mandate of establishing the entertainment sector nationwide.

Integrating the cinema business into SEVEN plays a key component in the entertainment offering in the Kingdom and enables the company to further consolidate its position in the country.

It further unlocks opportunities to develop Saudi talent, localise expertise, and create a sustainable entertainment sector in accordance with the highest international standards.

SEVEN will continue to partner with AMC through a franchise agreement, enabling it to keep the brand name of AMC Cinemas which, in 2018, became the first cinema operator in the Kingdom.

Under the SEVEN-AMC partnership, AMC Cinemas currently operates 85 screens across the Kingdom.

Abdullah Al Dawood, Chairman of SEVEN, said: “Our partnership with AMC, the world’s largest cinema chain, was crucial in developing knowledge, technical expertise and equipping us with the know-how to build up institutional capacities and support growth in Saudi Arabia’s entertainment industry.

“The acquisition of AMC’s stake in Saudi Arabia reflects SEVEN’s long-term strategy of bringing unparalleled experiences to the people and visitors of the Kingdom and contribute to the Saudi Vision 2030 goals.”

Adam Aron, Chairman and CEO of AMC, said: “After more than five years since our first trip to Saudi Arabia and nearly five years since we opened first theatre there, we believe this announcement and agreement is the natural next step in the process as we achieved our objectives of the joint venture.”

SEVEN aims to strengthen its offerings in the Kingdom’s developing entertainment market, which is growing at an annual rate of 47.65 per cent and is expected to touch SR4.4bn ($1.2bn) by the end of 2031.

As part of its plans to boost the country’s burgeoning entertainment sector, SEVEN had announced plans in November 2022 to invest SR50bn to develop 21 integrated entertainment destinations with over 150 innovative attractions, in partnership with prominent international brands, across 14 cities in Saudi Arabia.

AMC operates around 950 cinemas and 10,500 screens around the world currently.