Disney will build its seventh theme park, this one in the United Arab Emirates, the entertainment company said Wednesday.
The waterfront resort will be built on Yas Island on the outskirts of Abu Dhabi, already home to Formula One’s Abu Dhabi Grand Prix, the Ferrari and Warner Bros. amusement parks, SeaWorld and a waterpark.
Abu Dhabi is the capital of the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula. Home to 9 million people, it has leveraged its long-haul carriers Emirates and Etihad Airways to bring in more tourists over the years. A real-estate boom and the city’s highest-ever tourism numbers have made Dubai a destination as well as a layover.
Disney and Miral, the Abu Dhabi developer overseeing the project, hope to capitalize on the 120 million airline passengers that travel through Abu Dhabi and Dubai each year.
While long viewed as more buttoned up than the beaches and raucous nightlife in neighboring Dubai, Abu Dhabi also is home to the Louvre Abu Dhabi and there are more museums currently under construction.
The theme park announcement is being made ahead of a visit by U.S. President Donald Trump to the region next week. Trump has promised a series of business deals with Saudi Arabia, Qatar and the UAE.
The theme park will be built and operated by Miral, but Disney will handle the design and development. Disney will also license its intellectual property and provide development and management services, according to a regulatory filing.
The California company will not be providing any capital for the project. It will earn royalties based on the resort’s revenues. It will also earn service fees.
Miral has been involved in the development of almost all of the entertainment complexes built on the island.
A projected opening date has not been announced.
Shares of Disney, which also reported second-quarter financial results on Wednesday that beat Wall Street's expectations, jumped more than 9% in morning trading.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
