The Walt Disney Company announced on Wednesday, May 7, 2025, that it will build its seventh theme park in the United Arab Emirates, marking a significant expansion into the Gulf region. The planned waterfront resort will be located on Yas Island, just outside of Abu Dhabi city, a site already bustling with attractions like the Ferrari World, Warner Bros. World Abu Dhabi, SeaWorld, and a waterpark.
The announcement was made during a press conference at the W Abu Dhabi - Yas Island, where Disney Chief Executive Officer Bob Iger and Mohamed Khalifa al-Mubarak, chairman of the Department of Culture and Tourism Abu Dhabi, unveiled the project. Iger expressed excitement about the venture, stating, "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."
According to Disney, the new theme park will be the first regional Disney park in the Gulf Cooperation Council (GCC) and aims to attract tourists from across the Middle East and Africa, India, Asia, Europe, and beyond. This ambitious project is expected to capitalize on the approximately 120 million airline passengers who travel through Abu Dhabi and Dubai each year.
Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, highlighted that this park will be the "most advanced and interactive" Disney destination to date. The collaboration will be carried out with Miral, a local developer that has been instrumental in the development of nearly all entertainment complexes on Yas Island.
While Disney will oversee the design and development of the park, it will not be providing capital for the project. Instead, Disney will earn royalties based on the resort's revenues and service fees for its management and development services. This financial strategy allows Disney to expand its global footprint without the substantial upfront investment typically associated with theme park development.
The announcement comes at a strategic time, coinciding with a planned visit by U.S. President Donald Trump to the region next week, during which he has promised a series of business deals with Saudi Arabia, Qatar, and the UAE. This timing may enhance the visibility and potential success of the project as it aligns with broader economic initiatives in the region.
In addition to the new theme park, Abu Dhabi is undergoing a cultural transformation, with the Louvre Abu Dhabi and several other museums currently under construction, aiming to position the city as a cultural hub. Historically viewed as more conservative than its neighbor Dubai, which is famous for its vibrant nightlife and beaches, Abu Dhabi is working to redefine its image through significant investments in entertainment and culture.
Disney's decision to expand into the UAE follows a strong financial performance reported in its recent quarterly results. For the three months ended March 30, 2025, Disney reported earnings of $3.28 billion, or $1.81 per share, a substantial recovery from a loss of $20 million, or a penny per share, the previous year. This impressive turnaround was driven by a 7% increase in revenue to $23.62 billion, surpassing Wall Street's expectations.
The company’s Entertainment segment saw a revenue climb of 9%, while its Experiences division, which includes its theme parks, cruise lines, and merchandise, reported a 6% increase. Operating income for the Experiences division rose 9% to $2.5 billion, with domestic parks contributing a 13% increase in operating income. However, international parks experienced a significant drop of 23% in operating income, highlighting the challenges faced outside the U.S.
Looking ahead, Disney is projecting full-year adjusted earnings of $5.75 per share, a positive outlook compared to its previous guidance of high-single-digit adjusted earnings per share growth for fiscal 2025. This financial optimism may play a crucial role in supporting its ambitious expansion plans, including the new theme park in Abu Dhabi.
As the project moves forward, details regarding the park's design, attractions, and projected opening date are yet to be announced, but the anticipation surrounding this development is palpable. With a rich array of existing attractions on Yas Island, the new Disney theme park is expected to further enhance the region's appeal as a leading tourist destination.
In conclusion, Disney's latest venture into the UAE not only signifies a major step in its global expansion strategy but also reflects the growing importance of the Middle East as a hub for entertainment and tourism. As the company continues to innovate and adapt to market demands, the new theme park in Abu Dhabi promises to deliver a unique blend of culture, creativity, and fun that could redefine family entertainment in the region.
