Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Walt Disney is set to make a magical mark in Abu Dhabi with its first theme park in the Middle East, in collaboration with state-backed Miral Group. This move comes as Disney aims to cater to the growing number of affluent consumers in the region.
Bob Iger, Disney’s chief executive, expressed excitement about the Abu Dhabi park, stating that it would be accessible to “hundreds of millions of people” with disposable income who are unable to easily reach their other parks. He emphasized that this new venture would not cannibalize the existing locations but rather expand Disney’s reach to a new audience.
The announcement of the Abu Dhabi theme park coincided with a nearly 10% surge in Disney’s shares following a positive outlook for the financial year. The company attributed its strong performance to price increases for its streaming services and robust attendance at its US theme parks.
Under the agreement, Disney will be responsible for the design and operation of the new park, which will be its seventh worldwide. Miral, an Abu Dhabi state-owned developer, will fund the project and pay royalties to Disney. The park will be situated on Yas Island, a district developed by Miral to attract visitors from the Middle East, Africa, India, Asia, and Europe.
Abu Dhabi’s strategic location and visa accessibility make it an ideal destination for many potential Disney park visitors. The emirate already boasts attractions such as Sea World and Warner Bros theme parks, as well as the Louvre and Guggenheim museums. This new park will be Disney’s first since the opening of Shanghai Disneyland in 2016.
In 2023, Iger unveiled a $60 billion investment plan for Disney’s experiences business, which includes expansions in Florida and California. While no opening date has been announced for the Abu Dhabi park, Disney remains optimistic about its future performance across entertainment, sports, and theme park sectors.
Despite uncertainties in the operating environment, Disney reported a significant increase in net income in its second quarter, surpassing expectations and boosting investor confidence. The company’s streaming revenue also saw growth, driven by price hikes at Disney+ and Hulu.
Looking ahead, Disney anticipates continued success in its theme park business, with positive projections for the remainder of the fiscal year. As the company navigates challenges such as tariff policies and market fluctuations, it remains committed to delivering magical experiences to audiences worldwide.
The integration of Disney’s Abu Dhabi theme park into the company’s portfolio marks a significant milestone in its global expansion strategy. With a focus on innovation, creativity, and customer satisfaction, Disney continues to enchant audiences of all ages across the globe.
