Box office revenue in the Middle East is set to cross $800 million in 2021, $1 billion in 2022 and $1.3 billion in 2024, the fastest recovery of any region in the world from the impact of the global coronavirus pandemic.
Cinemas in the region made just $250 million in 2020, according to research by Omdia presented at the 4th META Cinema Forum in Dubai.
This is in sharp contrast to the recovery of the cinema industry in rest of the world. Globally, the combined revenues in the box office industry plummeted by 64.7 percent to roughly $15 billion last year, from $42.5 billion in 2019.
Box office revenue in the GCC, Jordan and Lebanon is expected to exceed $1.3 billion by 2024, growing from 600 million in 2019, according to Omdia research.
More than 500 industry delegates, experts and participants debated the opportunities and challenges faced by the industry stakeholders at the META Cinema Forum.
The Middle East and Africa region has one of the fastest growing entertainment industries in the world and governments are investing heavily to diversify economies and reduce dependency on a single economic sector.
Leila Masinaei, managing partner, Great Mind Events Management, said: “The cinema industry in the Middle East and Africa has shown remarkable resilience with the fastest recovery from Covid-19 pandemic – compared to the rest of the world. This reflects the inherent strength of the industry.
“People in the Middle East, especially the young generation, will continue to watch movies in cinema halls – that will primarily drive the growth of the industry, unlike the Western countries where OTT and content streaming channels are encouraging consumers to watch movies at homes.
“The growth of the cinema industry in the Middle East will also be driven by the economic diversification plan of the GCC governments, especially Saudi Arabia, to reduce dependence on oil. Cinema, entertainment and leisure sector will push the growth of the sector in the next few years.”
According to the research, GCC countries, Jordan and Lebanon, will see the addition of roughly 1,000 cinema screens over the next three years, taking the total number of screens from 2,100 in 2021 to 3,100 by the end of 2024.
Nearly half of the 3,100 cinema screens are expected to be in Saudi Arabia – the biggest growth market for the cinema industry.
Data shows that Saudi Arabia will fuel the growth of the cinema industry in the Middle East and Africa region and that’s where most of the opportunities are going to come from.
More than 35,517 or 17 percent of the 203,778 cinema screens worldwide were shut down due to Covid-19 lockdown at the beginning of 2020.
The global cinema industry is poised to record $42 billion losses in box office revenue between 2020 and 2022 due to the pandemic, Omdia research showed.
However, only 261 or 8 percent of the 3,099 screens in the Middle East and Africa were closed due to pandemic. Currently 168,261 cinema halls are open while the rest 35,517 are yet to re-open.
Mohamed Al Hashemi, country head of Majid Al Futtaim Leisure, Entertainment, Cinemas, and Lifestyle in Saudi Arabia, said: “For most businesses, the last 18 months has been a continuous juggling act as we navigate through unchartered waters of the pandemic.
“Despite the disruption caused by the pandemic, cinema operators across the region have demonstrated resilience and the capacity to adapt, which has positively impacted on the pace of recovery. As consumer habits continue to change, our industry needs to re-invent itself and continue driving movie lovers towards the magical experience of the big screen.
“The region is becoming an increasingly important market to the global box office, particularly Saudi Arabia and VOX Cinemas is looking to the future with confidence as we accelerate our pace of growth and continue to redefine the cinematic experience.”
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