Imax seeks investors in its vision of growth in the Gulf

December 5, 2024, 1:36 PM

The UAE and Saudi Arabia are key growth markets where there is rising demand for premium cinematic experiences Imax — The UAE and Saudi Arabia are key growth markets where there is rising demand for premium cinematic experiences

US cinema giant keen to grow
Targeting Saudi Arabia and UAE
New site just opened in Jeddah

Imax Corporation, the US cinema technology giant, is in discussions with Gulf investors including sovereign wealth funds as it seeks to deepen its presence in one of its fastest-growing markets.

The UAE and Saudi Arabia rank among Imax’s top 20 global markets, its popularity driven by rising demand for premium cinematic experiences.

“We’re meeting various GCC investors including a number of sovereign wealth funds, asset managers and family offices and groups,” Rich Gelfond, CEO of Imax, told AGBI.

Gelfond said his team “did a prior trip with my CFO and they met with several institutions. We’re doing a follow-up trip this month, because they have interest.”

Blazer, Clothing, Coat Rich Gelfond, CEO of Imax, says 'We’re pretty broad in what we’re exploring' — Rich Gelfond, CEO of Imax, says “We’re pretty broad in what we’re exploring”

Discussions include potential partnerships to develop flagship theatres featuring all-Imax screens, investments in regional film funds, and other collaborations, Gelfond said.

“We’re pretty broad in what we’re exploring,” he said.

“We don’t put a lot of capital into some of these projects, but these pools of capital might want to invest.”

Imax is targeting up to 67 locations across Saudi Arabia and the UAE.

Saudi Arabia, where Imax opened its first screens in 2019 – one year after cinemas reopened when a four-decade ban ended – has become a key growth market.

The company currently operates 11 sites in the kingdom, with another 21 under development, and estimates it could open “at least” 50 cinemas in Saudi Arabia in total.

A new site opened this week at Muvi Mall of Arabia in Jeddah, where Imax announced its first Arabic-language feature, Esaaf, or Ambulance.

The action-comedy, directed by Colin Teague and starring Ibrahim Al Hajjaj and Mohammed Al Qahtani, is due to premiere in April. It is expected to be one of the highest-grossing Arabic-language films of the year.

The UAE, where Imax first launched in 2010, is also a priority market.

Imax plans to expand its reach in the Gulf, increasing the number of cinemas and developing collaborations with local film funds and producers

The company plans to increase its footprint to 17 theatres, up from the current four.

The cost of purchasing or licensing an Imax system in the Middle East is estimated at about $1 million per theatre.

“We also hope to form ventures in the UAE to make local content and to combine local content with Hollywood content,” Gelfond said.

Imax is planning to support local content production in the UAE and the region, he said.

The company does not produce feature films itself, but instead offers its tools and technology to assist productions.

Gelfond said the company’s recent strong stock performance made this an opportune time to engage potential investors.

Imax reported a 16 percent rise in Q3 net income to $14 million, driven by strong profitability, network expansion and robust system sales. A record-breaking $1.2 billion global box office is projected for 2025.

“Our stock has done very well recently, so it’s also a good time,” Gelfond said.

“We also find that as we expand into a region, we tend to get more shareholders from that region, because everything is local.

“If you don’t know what Imax is, it’s hard to invest in it. But once there’s a bigger footprint, the local money managers understand it better.”