Disney to Open New Theme Park Resort in Abu Dhabi

ABU DHABI - The Walt Disney Company (NYSE: DIS), a $166 billion entertainment giant currently trading below its InvestingPro Fair Value, and Miral, Abu Dhabi’s premier developer, have announced plans to build a Disney theme park resort on Yas Island, a renowned entertainment and leisure hub. This will mark the seventh Disney theme park resort globally, aiming to attract visitors with its blend of Disney’s storytelling and Abu Dhabi’s cultural backdrop. The company, generating over $92 billion in annual revenue, continues to strengthen its position as a prominent player in the global entertainment industry.

The partnership signifies Abu Dhabi’s investment in travel and tourism as foundational elements of its future growth. This new resort, fully developed by Miral, will feature Disney’s creative input and operational oversight to ensure an authentic experience that resonates with the region’s culture and heritage. With an EBITDA of $18.45 billion and a solid financial health score rated as GOOD by InvestingPro, Disney demonstrates strong operational capabilities for such expansion projects.

His Excellency Mohamed Khalifa Al Mubarak, Chairman at Miral, emphasized the union of visionary leadership and creative excellence that the collaboration embodies. The resort promises to provide memorable experiences for families and contribute to Abu Dhabi’s reputation as a premier global destination.

Robert A. Iger, CEO of The Walt Disney Company, highlighted the cultural richness of Abu Dhabi and the innovative approach that will be taken with this park, which will be "authentically Disney and distinctly Emirati."

The United Arab Emirates, with its strategic location within a four-hour flight of one-third of the world’s population, serves as a significant tourism gateway. The development of this resort is expected to capitalize on the UAE’s status as a major airline hub.

Josh D’Amaro, Chairman of Disney Experiences, described the upcoming Abu Dhabi resort as the most advanced and interactive in their portfolio, underscoring its unique waterfront location and the potential to reach new audiences.

Mohamed Abdalla Al Zaabi, Group CEO of Miral, expressed that this initiative is a historic step in Yas Island’s evolution, aligning with the vision to inspire the world through innovation and leadership.

The resort will offer Disney-themed accommodations, dining, retail, and storytelling that celebrates both Disney’s legacy and Abu Dhabi’s modern spirit. Details on the project’s progression will be disclosed in due course, as mentioned in the company’s 10-Q filing. With revenue growth of 4% and operating with moderate debt levels, Disney appears well-positioned for this expansion. For deeper insights into Disney’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, explore the full research report available on InvestingPro.

This information is based on a press release statement from The Walt Disney Company and Miral.

In other recent news, Walt Disney Company has been in the spotlight due to several significant developments. UBS analyst John Hodulik revised Disney’s price target to $105, down from $130, while maintaining a Buy rating. Hodulik forecasts strong demand in Disney’s Parks division and a 4.2% year-over-year revenue increase to $23 billion for the second fiscal quarter. Despite the adjustments, he anticipates Disney will maintain its earnings per share (EPS) guidance, with projections of a 9.5% increase in EPS for the full year. Loop Capital also adjusted its price target for Disney to $120, citing potential competition from Comcast’s new theme park and a downward adjustment in film revenue forecasts due to "Snow White’s" performance.

Meanwhile, Disney’s planned merger with FuboTV has attracted scrutiny from the U.S. Department of Justice, raising concerns about market concentration in sports streaming. This merger aims to create the second-largest online pay-TV provider in North America. Bernstein analysts reiterated an Outperform rating for Disney with a $120 price target, highlighting potential margin expansion in the Direct-to-Consumer segment and projecting EPS to exceed $6 by fiscal year 2026. Additionally, a report indicated that China plans to moderately reduce the number of U.S. films it imports, which could impact Disney’s film revenue, though the extent remains unclear. These recent developments underscore the complex landscape Disney navigates amid economic uncertainties and competitive pressures.

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