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Investing.com -- Shares of The Walt Disney Company (NYSE: NYSE:DIS) climbed 7% as the company unveiled plans for a new Disney theme park and resort on Yas Island, Abu Dhabi, marking its first major expansion into the Middle East. The announcement, made in partnership with local developer Miral Group, coincides with Disney’s report of positive earnings.
The proposed Disney waterfront resort will be situated in a well-visited tourist area already hosting attractions such as Warner Bros World Yas Island and Yas Waterworld Abu Dhabi. The ambitious project is anticipated to be a significant addition to the region, with Yas Island having attracted over 34 million visits in 2023, a 38% increase from the previous year.
Disney’s Experiences unit Chairman Josh D’Amaro expressed enthusiasm about bringing Disney’s stories to a new audience in the Middle East, highlighting Abu Dhabi’s strategic location. The resort is expected to showcase a blend of Disney’s classic entertainment and the unique cultural heritage of Abu Dhabi.
Miral, responsible for the development of Yas Island, will finance, construct, and operate the resort, while Disney will provide creative leadership and operational oversight. The U.S. company will also earn royalties from the park’s revenue.
Disney CEO Bob Iger emphasized the resort’s significance, describing it as "authentically Disney and distinctly Emirati." The project is part of Disney’s broader strategy to invest heavily in its Experiences unit, which has seen a commitment of $60 billion over ten years for expansion, including doubling its cruise ship fleet.
The announcement did not specify an opening date for the theme park, but given the scale of the project, it could take several years to complete. The resort is expected to offer Disney-themed attractions, dining, and retail experiences, merging Disney storytelling with Abu Dhabi’s heritage.
The collaboration aligns with Abu Dhabi’s investment in infrastructure to bolster its tourism sector, with plans to enhance the capacity of the international airport in Dubai to accommodate 120 million passengers annually by 2026.
Investors have responded positively to the news, reflecting confidence in Disney’s growth strategy and its potential to tap into a new market.