"In line with the fund's mandate to help unlock promising new sectors within the kingdom, PIF and AMC Entertainment will explore theatrical exhibition and related investment and partnership opportunities in Saudi Arabia," the Public Investment Fund said.
AMC shares were up more than 3% Tuesday afternoon.
"This announcement is a historic moment for the theatrical exhibition industry and a tremendous opportunity to connect AMC's movie products with the Kingdom of Saudi Arabia's more than 30 million citizens, many of whom we know are movie fans based on their regular visits to cinemas in neighboring countries," AMC CEO Adam Aron said in the statement.
In a separate deal, Costco (COST - Get Report) announced that it partnered with movie-theater subscription service MoviePass and streaming service Fandor to offer a one-year subscription to both services for a flat rate.
Helios and Matheson Analytics (HMNY) , which owns a majority stake in Moviepass, was up 12% Tuesday afternoon.