In a latest development on the investment front, a leading private equity firm in Dubai, Abraaj Group has stepped in the entertainment industry in Pakistan. The group has made investment in the leading cinema operator of Pakistan, Cinepax Limited.
Abraaj said in a press release statement:
“With Abraaj’s investment, the value of which has not been disclosed, Cinepax plans to develop 80 new screens across multiple locations over the next four years. Additionally, it also looks forward to grow other entertainment related ventures”
The idea behind Abraaj Group investment in Cinepax Pakistan is to support the local cinema operator in building the multiplex cinemas as per the international standards. In addition, the Dubai-based company is also keen to establish cinemas in new and upcoming urban centres of the country.
Partner for Asia at the Abraaj Group, Omar Lodhi said in a statement:
“Our investment into Cinepax demonstrates our faith in the opportunity that Pakistan’s young growing population and expanding middle class represents. As one of the most active investors in Pakistan, with a strong on-the-ground presence, we see a long-term market opportunity in the cinema operator and video streaming business”
The Chairperson of Cinepax, Arif Baigmohamed added:
“We are delighted to welcome Abraaj as an investor into our business. Furthermore, we look forward to partnering together to reach more people across the country, providing much needed entertainment options”
It is pertinent to mention that this is Abraaj’s 9th investment in Pakistan. The Dubai-based firm has invested in plenty of sectors including healthcare, power distribution, renewable energy and industrials. The first major investment from the company was back in 2004.
About Cinepax Pakistan
Established in 2006, Cinepax is Pakistan’s first dedicated National Cineplex Company. The cinema operator has premier movie exhibition centers all across Pakistan. Moreover, it covers 11 locations across 8 cities around the country. At present, Cinepax is operating its 29 screens in Karachi, Lahore, Rawalpindi, Faisalabad, Gujranwala, Gujrat, Murree and Hyderabad.
The founders of Cinepax Arif Baigmohamed and Pir Saad Ahsanuddin formed the company 11 years ago in 2006 and introduced their maiden multiplex a year later in 2007.
There are no second thoughts that the entertainment industry of Pakistan has substantial growth potential. However, the low ratio of cinema screens (0.5 per million population) across the country is a major concern. This is where Abraaj Group has come into the play. They have identified the opportunity in the entertainment industry of Pakistan to make a significant change.