The Walt Disney Company on Wednesday announced plans to develop a new theme park and resort in Abu Dhabi, marking its first new global resort destination in over 15 years. The project, to be built on Yas Island in partnership with UAE-based Miral, will be Disney's seventh resort complex and its first in the Middle East.
The development will be fully financed and operated by Miral, with Disney Imagineers overseeing creative design and operational elements. While Disney is not investing capital in the project, it will earn royalties from the venture. CEO Bob Iger described the deal as "a thrilling moment for our company," adding, "It will rise from this land in spectacular fashion, blending contemporary architecture with cutting edge technology."
The announcement comes amid strong performance from Disney's Experiences segment, which includes parks, cruises, and merchandise. In fiscal 2024, the division generated 59% of the company's operating income and 37% of total revenue. During Disney's second-quarter earnings call, Iger said, "Experiences is obviously a critical business for Disney and also an important growth platform."
Josh D'Amaro, chairman of Disney Experiences, said the Abu Dhabi resort would be "the most advanced and interactive destination in our portfolio," and emphasized the park's waterfront location and technological integration. The castle design, teased by Disney, deviates from traditional fairy tale motifs, featuring a spiraling, crystal-like structure. D'Amaro added, "This project will reach guests in a whole new part of the world, welcoming more families to experience Disney than ever before."
Miral previously developed attractions on Yas Island including Warner Bros. World, SeaWorld Abu Dhabi, and Ferrari World. The island, already a major tourism hub, lies within a four-hour flight of nearly one-third of the global population and attracts visitors from across Asia, Europe, and the Middle East.
Disney's plans for Abu Dhabi were first considered in 2017 but delayed due to COVID-19 and executive changes. Speaking to CNBC, Iger declined to give a firm opening date but noted that the development process typically takes between five and seven years. "We're not making any commitments right now," he said.
The announcement also comes at a time of heightened competition in the global theme park sector. Universal recently revealed plans for its own seventh resort in the United Kingdom and is preparing to open its Epic Universe park in Florida, the first major expansion there in decades. D'Amaro dismissed concerns about the competitive landscape, saying, "You're not going to come into Central Florida and not go visit Star Wars. ... We feel that we're going to benefit from that."
Beyond the Abu Dhabi expansion, Disney reported second-quarter revenue of $23.6 billion, a 7% increase year-over-year, and $4.4 billion in operating income, up 15%. Streaming services also rebounded, with Disney+ gaining 1.4 million subscribers and Hulu adding 1.3 million. The company's direct-to-consumer operating income reached $336 million, up from $47 million a year prior.
Sports revenue rose 5% to $4.5 billion, though operating income in the segment fell by $91 million due to increased costs related to expanded college football and NFL coverage. Domestic advertising revenue rose 29%, offsetting part of the production-related expenses.
