MIDDLE EAST CINEMA INDUSTRY - META CINEMA MENA Cinema Forum
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OVERVIEW OF THE MIDDLE EAST CINEMA INDUSTRY The Covid-19 crisis has significantly impacted the Middle East cinema industry because of the closure of the cinemas, resulting in job losses. However, theatres have begun to slowly reopen in some countries in the Middle East. In the current scenario, there seems to be a new trend emerging, which is “drive- in” cinema. Although drive-in cinemas are not a new concept in the Middle East, there seems to be resurgence. TRENDS EMERGING IN THE MIDDLE EAST CINEMA INDUSTRY UAE The concept of drive-in experience started in the UAE after the coronavirus pandemic forced closure of cinema halls. Abu Dhabi, Sharjah and Dubai have already launched drive-in cinema theatres. The Abu Dhabi Department of Economic Development (ADDED) issued a new circular in August allowing owners of cinemas inside shopping malls across Abu Dhabi to resume operations at 30% capacity and comply with precautionary measures to curb the spread of Covid-19. The move was made in coordination with the Abu Dhabi Emergency, Crisis and Disaster Committee for the Covid-19 pandemic. ADDED’s Under-Secretary noted that there are 19 cinemas operating in the emirate, 12 in Abu Dhabi city, six in Al Ain city and one in Al Dhafra region. The first drive-in cinema in Dubai was Vox Cinemas Drive-In and they set up home in Mall of the Emirates. Reel cinemas launched a drive in experience in May 2020 at the Dubai Mall. Yas Island launched the Yas Drive In Cinema, in partnership with Reel Cinemas, and Brag at Yas Marina Circuit, Yas Island in July 2020. Sharjah has its very own drive-in cinema at Madar at Aljada. UAE-based Azizi Developments is set to launch an outdoor drive-in cinema at Riviera, located within Mohammed bin Rashid City in Dubai, by 2020-end.
KSA Saudi Arabia’s cinema industry is potentially valued at approximately US$ 1 bn. Movie theaters are making a partial comeback, with two of Saudi Arabia’s three major players now taking ticket bookings and operating with limited capacity. Vox Cinemas and Muvi Cinemas are both open for bookings again, while AMC Cinemas has yet to announce a date for reopening. In August 2020, Swicorp Wabel REIT announced the opening of a multi-screen cinema theatre at one of its key properties, Al Makan Mall, situated in the city of Hafr Al Batin. The REIT is scheduled to open further movie theaters in its portfolio in three other cities as well as Dawadmi and Tabouk in the short term. Investors feel that there is significant value in the new leisure and entertainment sector, which opened up recently in the kingdom, reaffirming their commitment to the Saudi Vision 2030 despite the pandemic situation. OMAN Muscat’s first drive-in cinema is ready to open its doors soon, with a capacity to accommodate nearly 500 vehicles. Oman’s Drive-in Cinema is a 100% Omani project, implemented by the Manather Qantab International Company. The aim of this initiative is to provide jobs for unemployed nationals.
MAJOR PROJECTS Some of the major upcoming shopping center projects with cinema within the development scope are listed in the table below: Completion Name Country Project Status Client Year National Real Estate The Reem Mall in Company (NREC), Al Najmat on Reem UAE Construction 2020 Farwaniya Property Island Development Deira Islands - UAE Construction Nakheel PJSC 2021 Deira Islands Mall Majid Al Futtaim (MAF) Mall of Oman Oman Construction 2020 Group Al Zahia City in Sharjah Holding, Majid Sharjah - City UAE Construction 2020 Al Futtaim (MAF) Group Centre Qiddiya City in Qiddiya Investment Riyadh - City KSA Design 2026 Company (QIC) Centre Meydan One UAE Construction Meydan 2021 Mall Dubai Hills Estate Dubai Holding, Emaar UAE Construction 2020 - Dubai Hills Mall Properties Tilal Real Estate (Sharjah Asset Tilal City - Tilal Tenderfor UAE Management with 2022 Mall Construction Eskan Real Estate Development) Al Raid Group of Al Araimi Walk Oman Construction 2022 Companies Salhia Real Estate Co. Al Asima in Sharq Kuwait Construction 2021 (SREC) Source: www.venturesonsite.com
FUTURE OUTLOOK Developing the cinema industry has become a necessity to cope with during these exceptional circumstances. Industry experts believe that the coronavirus pandemic has accelerated some design trends, such as automated ordering of tickets and food, online booking and the reduction or elimination of traditional long concession stands. In Muscat, the first drive-in will have snack delivery automated by using robots, in cooperation with the Roboto Restaurant in Muscat, a unique dining venue where food is delivered by robots. Although the cinema industry has experienced a challenging situation, it is expected to rebound. The drive-in cinema concept is expected to stay, even after social distancing rules are relaxed, and Covid-19 is under control in the Middle East. CONTACT US Anush Shetty Partnership Director anush.shetty@gmevents.ae
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