Saudi Arabia announced on Monday its plan to grant licenses to open cinemas from early next year.
Minister of Culture and Information Awwad bin Saleh Alawwad said in a statement that the industry regulator, the General Commission for Audiovisual Media, had started the process, reports Xinhua news agency.
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He said the first cinema was expected to open in March 2018.
The move is part of a series of reforms as part of the 2030 economic vision that also includes a war on corruption.
The changes are also intended to gain up to a quarter of the $20 billion currently spent overseas by Saudis, who are accustomed to travelling abroad to see shows and visit amusement parks.
Saudi Arabia in recent months has organised concerts, a Comic-Con pop culture festival and a mixed-gender national day celebration that saw people dancing on the streets to electronic music for the first time.