Disney is headed to Abu Dhabi — but it’s not picking up the bill.
In a deal announced Wednesday, The Walt Disney Company (DIS) revealed plans to open its seventh global theme park resort, this time on Yas Island in the United Arab Emirates. The project will be fully funded and built by Miral, the developer behind other Yas Island attractions such as Warner Bros. World (WBD) and SeaWorld Abu Dhabi.
Disney’s role? Creative design, operational oversight — and collecting royalties.
“This is a thrilling moment for our company as we announce plans to build an exciting Disney theme park resort in Abu Dhabi, whose culture is rich with an appreciation of the arts and creativity,” Disney CEO Bob Iger said in a statement. “It will rise from this land in spectacular fashion, blending contemporary architecture with cutting edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways.”
While the park doesn’t have an opening date yet, Iger expects the design process to take around two years and five years to build — so approximately seven years till opening day.
“Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati — an oasis of extraordinary Disney entertainment at this crossroads of the world that will bring to life our timeless characters and stories in many new ways and will become a source of joy and inspiration for the people of this vast region to enjoy for generations to come,” Iger said.
Miral’s chairman, His Excellency Mohamed Khalifa Al Mubarak, said in the statement that what his company is creating with Disney in the country “is a whole new world of imagination — an experience that will inspire generations across the region and the world, creating magical moments and memories that families will treasure forever.”
The park’s announcement came hours after Disney posted better-than-expected quarterly earnings. Revenue in the Parks, Experiences, and Products segment jumped 10% year over year to $8.4 billion, while operating income from domestic parks climbed 12% to $1.9 billion. The segment accounted for approximately 37% of Disney’s total revenue and nearly 60% of its operating income during this period.
“Experiences is obviously a critical business for Disney and also an important growth platform,” Iger said on Disney’s second-quarter earnings conference call.
Abu Dhabi marks Disney’s first major physical expansion in the Middle East. Iger told CNBC (CMCSA) that the company began scouting the region back around 2017, but the COVID-19 pandemic and a CEO change delayed its expansion into the UAE .
Now, with a prime waterfront location, a tourism market of around 500 million visitors, and a third of the world’s population within a four-hour flight of the country, Disney sees massive upside — without dipping into the $60 billion Disney has pledged to invest in its theme parks over the next 10 years.
“It’ll be much larger than anything that’s currently here,” Josh D’Amaro, chairman of Disney Experiences, said on CNBC. “This project will reach guests in a whole new part of the world, welcoming more families to experience Disney than ever before.”
Will Disney Abu Dhabi be the company’s best global theme park yet? Here’s a look at Disney’s current six theme parks that you could travel to... tomorrow.
