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Feasibility Study for an Open-Air Theater and Cinema in Riyadh
Feasibility Study for an Open-Air Theater and Cinema in Riyadh
Feasibility Study for an Open-Air Theater and Cinema in Riyadh: The project aims to establish an open-air theater and cinema in Riyadh, offering a unique outdoor entertainment experience combining cinematic, theatrical, and live performances. The venue will be equipped with the latest audio-visual technology, comfortable seating areas, a variety of food and beverage options, and designated areas for families and individuals.
The project aims to provide an integrated cultural and entertainment experience, with the potential to host musical events, comedy shows, and film festivals, making it a unique destination for residents and visitors of Riyadh.
Investment opportunity content
Targeted Products and Services
Targeted Products and Services
Open Door Movie Screenings – The latest international and local films, with a unique cinematic experience under the stars.
Theatrical Performances – Hosting live plays and performances featuring local and international theatrical troupes.
Musical Events – Live concerts by Saudi and international artists.
Film Festivals – Screening of Saudi and international films at special film festivals.
Comedy and Stand-Up Comedy Evenings – Live comedy shows featuring famous artists.
Children’s and Family Events – Special shows for children, with entertaining and educational workshops.
Food and Hospitality Services – Dedicated food and beverage areas serving fast food, gourmet cuisine, and a variety of beverages.
Private Event Rentals – The venue can be rented for private events, corporate parties, and outdoor weddings.
Demand and Market Analysis
Demand and Market Analysis
1. Growth in the Saudi Entertainment Sector
The entertainment sector in Saudi Arabia is experiencing rapid growth, driven by Vision 2030, which aims to diversify the economy and increase entertainment options for citizens and residents. Reports indicate that the size of the Saudi entertainment market will reach 120 billion Saudi riyals by 2030, enhancing the project’s chances of success.
2. Demand for Cinemas and Open-Air Theaters
Demand for cinemas has increased since cinemas were allowed to resume in Saudi Arabia, with the number of cinema screens expected to reach more than 300 by 2030.
The presence of an open-air theater and cinema is a new addition to the market, as there are no similar projects of this size in Riyadh, giving the project a strong competitive advantage.
3. Growing Demand for Outdoor Events
Riyadh is one of the cities that hosts the most major events, such as the Riyadh Season, reflecting the public’s desire for unique entertainment experiences. An open-air cinema and theater will be an ideal destination during the colder months, when outdoor activities are highly sought after.
Target Audience
Target Audience
Families – seeking group entertainment in a safe and fun environment.
Young adults and teenagers – a key audience for modern film screenings and entertainment events.
Tourists and visitors – especially with the increasing number of visitors to Riyadh as part of tourism promotion plans.
Art and theater enthusiasts – interested in live theater and music performances.
Companies and institutions – using the theater for private events and corporate parties.
Cultural and artistic community – filmmakers and actors looking for a platform to showcase their work.
Financial Indicators
Financial Indicators
1. Expected Investment Costs
Cost of establishing an open-air theater and cinema: SAR 20-30 million.
2. Expected Revenues
Cinema and theatrical ticket revenues: SAR 15-25 million annually.
Food and beverage revenues: SAR 5-10 million annually.
Special event and festival rentals: SAR 3-6 million annually.
Sponsorship and advertising contracts: SAR 2-4 million annually.
Total expected annual revenues: SAR 25-45 million.
3. Expected Return on Investment (ROI)
An expected return on investment of 15-20% annually is expected.
The expected payback period is between 5 and 7 years.
Investment Benefits
Investment Benefits
1. A Unique Project with High Demand
There are currently no fully-fledged open-air cinemas and outdoor theaters in Riyadh, making the project an innovative investment in the entertainment sector.
2. Government Support for the Entertainment Sector
Entertainment projects are supported by the Saudi Entertainment Authority, with investment incentives and tax exemptions available for projects that enhance the entertainment experience in the Kingdom.
3. High Demand for Outdoor Events
With the increasing demand for outdoor activities during the fall and winter seasons, an open-air theater and cinema will be an ideal option for visitors, ensuring a steady stream of revenue.
4. Diverse Income Opportunities
Revenues do not rely solely on tickets, but also include advertising, event rentals, and on-site sales, enhancing the project’s financial sustainability.
5. Potential for Expansion and Development
The project could be expanded in the future to include branches in other Saudi cities such as Jeddah and Khobar, or to add VIP spaces and digital experiences such as virtual and interactive reality.
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