This theatre was established following a workshop on (developing alternative spaces) organized by The Arab Theatre Training Center, ATTC in cooperation with the Young Arab Theatre Fund and the Amman International Theatre Festival in 2002. This workshop aimed at exploring ways in which existing spaces can be transformed into alternative spaces for the performing arts. This workshop was conducted by the Swedish expert Gert-Ova Waagstam and scenographer Tareq Abu El Futouh of the Young Arab Theatre Fund. Eleven young architects and cultural managers from Jordan participated in this workshop which selected Versaille cinema, one of the oldest cinema houses in Amman, as a model for the rehabilitation plan. The three partners in the project managed to implement the results of the workshop and Al Balad Theatre was founded under the direct management and supervision of Raed Asfour, director and scenograph. The Al Balad Theatre was opened on 17 February 2005 .

  For over one year and a half the ATTC was the host organization for the theatre until it was founded as a non profit company in Jordan with a board consisting of 12 artists and business people and professionals from the Jordanian civil society.