Disney is set to launch its first new theme park in over a decade, planning a lavish resort in Abu Dhabi at a cost of $10 billion.
The entertainment company unveiled the Landmark project on Tuesday, calling it a significant milestone akin to the opening of Disneyland in 1955.
During a quarterly revenue call, Disney CEO Bob Iger shared the news.
“I joined you from the United Arab Emirates, where we’ve just made an agreement to introduce Disney theme parks to Abu Dhabi,” Iger shared. The Future Park is described as “real Disney and clearly Emirati.”
Positioned on Yas Island, this park will join other attractions, including Warner Bros World, Ferrari World, and Sea World Abu Dhabi.
All these facilities are run by Miral, a state-supported developer in the UAE.
According to the contract, Miral will cover the entire cost of development, projected to exceed $10 billion, possibly making it the priciest Disney-branded resort ever built.
Disney has not publicly commented on the anticipated costs.
The company’s role in the Abu Dhabi project mainly involves its valuable intellectual property and creative oversight.
Disney’s “Imagineer,” the team responsible for Disney’s immersive parks, will lead the design and branding of the resort, maintaining consistency with Disney’s global image.
Meanwhile, Miral will take care of the financial, development, and operational responsibilities once the park opens.
This financial arrangement proves beneficial for Disney, allowing the company to collect licensing fees from the park’s revenues without risking capital.
Strategically located within a four-hour flight for roughly one-third of the global population, the new theme park aligns with Disney’s current strategy and demonstrates financial caution amidst ongoing challenges in the media industry, such as box office fluctuations and uncertainties in streaming.
Recently, Disney’s Parks and Experience division reported an operating profit of $2.5 billion, reflecting robust financial resilience as it integrates media and sports segments.
The announcement of the Abu Dhabi venture positively impacted Disney’s financial outlook, increasing its share price by nearly 11% following the news.
This post was sought for comment from Disney.
