Big Screen Opportunities

Screen International, October 11, 2012 | Go to article overview

Big Screen Opportunities


State-of-the-art multiplexes are helping to grow the Gulf box office.

In terms of area, the six countries that make up the Gulf Co-Operation Council (GCC) would rank 10th in the world as a single country bloc, bigger than Algeria and not far off western Europe. The GCC shares more or less the same size and population as Argentina, but with a nominal gross domestic product that is more than three times higher. Given that Argentina's total box office exceeded $230m last year, the potential for growth is clear - and at 35 dirhams ($9.50), ticket prices in the UAE are about double the prices in Argentina. Put all that together and in theory the GCC has a market that could be worth more than $500m each year in theatrical grosses.

There is a catch, of course. Saudi Arabia, by far the biggest economy in the region, is to all intents shut off to theatres. Ever since 1980, when religious conservatives closed down improvised movie halls in the country, film has been consumed at home through close to a thousand channels of satellite TV, DVDs and YouTube.

Saudis who hanker after a more communal cinematic experience have to go abroad. An estimated 250,000 flocked to the UAE last year alone with the sole intention of attending a cinema. Many others used to travel to Egypt, where half of the Arab world's estimated 800 screens exist. But with recent political upheavals they have switched to closer destinations such as Qatar and Bahrain where new multiplexes are being built. One Bahraini cinema owner suggested that 90% of his customers were Saudi.

Watching movies in air-conditioned retail arenas is a fast-growing phenomenon, particularly in the Emirate states where 50 million visitors came last year to the Dubai Mall alone.

'Movie-going is a habit in the UAE'Salim Ramia, Gulf Film

In the 12 months leading up to June this year, 13.4 million tickets were sold in the UAE, worth a total of $141m, according to figures compiled by local distributor Italia Film. Two of the biggest hits, Marvel's The Avengers and Mission: Impossible 4 - Ghost Protocol (in which Dubai's Burj Khalifa tower played a prominent role) each generated more than $6m at the UAE box office.

"Movie-going is a habit in the UAE, where the trend is already more than two-and-a-half cinema visits per year per person," says Salim Ramia, the Lebanese-born co-founder of Gulf Film, the regional distribution and exhibition powerhouse that was majority sold to the government-backed Qatar Media Services (Q. …

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