Why Disney decided on Abu Dhabi for a new theme park
Abu Dhabi’s strategic position as a global crossroads emerged as a key determinant.
In a move signaling a significant global expansion, The Walt Disney Company has strategically chosen Abu Dhabi, United Arab Emirates as the location for a new theme park. This decision, underscored by comments from CEO Robert Iger during the quarterly earnings call, is rooted in a confluence of factors, primarily the vast, underserved consumer base in the Middle East and surrounding regions, coupled with a strong alignment in values and vision with their Abu Dhabi partners.
Internal analyses revealed a substantial global demographic – hundreds of millions of individuals – whose proximity and the associated costs rendered visits to Disney’s existing six parks in North America, Europe, and Asia Pacific logistically challenging. “We did study the region very carefully, and we know we had many opportunities,” Iger stated, emphasizing the deliberate nature of the selection process. “Obviously, building a theme park in a location is a huge endorsement of the location, speaks volumes of the ability of that location to sustain a Disney theme park.”
The rationale extends beyond mere geographical reach. Disney identified a significant appetite for its brand within this demographic, evidenced by the rapid sell-out of the upcoming Singapore-based cruise line. “There is clearly a desire to engage, for consumers to engage with Disney in a wide region,” Iger noted, dismissing concerns of cannibalization of existing park attendance.
Abu Dhabi’s strategic position as a global crossroads emerged as a key determinant. The Emirate boasts exceptional connectivity, placing an estimated 500 million “income qualified” individuals within a four-hour flight radius. Furthermore, the robust tourism sector of the UAE, with Dubai and Abu Dhabi projected to receive 125 million visitors this year alone, presents a substantial built-in audience. Abu Dhabi’s own ambitious tourism targets, aiming for 39 million visitors by 2030, further solidified its appeal.
Disney was also significantly influenced by the specific attributes of Abu Dhabi and its partners. Iger highlighted that “capital was not an issue,” indicating a strong financial foundation for the project.
Disney will be working with Miral, Abu Dhabi’s leading creator of immersive destinations and experiences, to bring the resort to life. The waterfront resort will be located on Yas Island, a world-class destination for entertainment and leisure, connecting travelers from the Middle East and Africa, India, Asia, Europe, and beyond.
Disney will not have any ownership in the new park. It’s all the capital of Miral “so there is no ownership, we own our IP and license it to them, is essentially the arrangement,” Iger said. “We are responsible for design and development. And we will be involved significantly in oversight of their operations. Basically, to ensure that the Disney experience, meaning the Disney theme park experience, is up to the level that we offer and the other six locations in which we operate.”
More crucially, Iger emphasized a shared commitment to “quality and innovation, and appreciation of the arts and creativity,” values deeply ingrained in Disney’s own operational ethos. The Emirate’s embrace of new technology also resonated strongly with the entertainment giant.
The existing and planned cultural infrastructure of Abu Dhabi, including developments like the Guggenheim Abu Dhabi, further cemented the decision. “Everywhere we looked we were convinced that this was a perfect place for us,” Iger explained. The partnership itself proved to be a pivotal factor, with Disney finding a strong cultural and operational alignment. “Our partners, we immediately bonded with them in many respects. Spoke the same language, DNA.”
Ultimately, Iger concluded that “of all the places that we could choose from, they did not seem to be any place that is better than this.” The speed at which the partnership materialized underscores the strong conviction on both sides that Abu Dhabi represents an optimal location for Disney’s strategic expansion into a significant and previously underserved global market. This move signals Disney’s confidence in the region’s long-term growth and its commitment to bringing its immersive entertainment experiences to a wider global audience.
The theme park will be built on Yas Island, the entertainment and leisure hub of Abu Dhabi. The island is known for its diverse attractions and hotels including, Ferrari World Abu Dhabi, Yas Waterworld, Warner Bros. World Abu Dhabi, and SeaWorld Abu Dhabi.