Saturday, June 21, 2025

Disney’s Abu Dhabi Dream: Why It’s Avoiding Investment Risks

Shutterstock

On Wednesday, Walt Disney announced its plans to construct its seventh theme park in Abu Dhabi, UAE.

Instead of building and operating the park directly, Disney will allow a local company to invest in the construction while collecting royalties.

This strategy allows Disney to avoid investment risks while still benefiting from the venture.

According to CNBC and other media outlets, Disney announced an agreement with local UAE company Miral to build the park on Yas Island in Abu Dhabi under a licensing arrangement.

Yas Island, an artificial island in Abu Dhabi, has become a major destination for shopping and entertainment.

The island is home to Abu Dhabi’s largest shopping mall, Ferrari World Abu Dhabi, the Yas Marina Circuit for Formula 1 racing, Yas Waterworld, SeaWorld Abu Dhabi, and theme parks such as Warner Bros World Abu Dhabi.

Disney’s decision to build a theme park in the UAE comes as the country is emerging as a global tourism hub.

However, Disney will contribute its expertise rather than financial investment.

Disney’s Imagineers will lead the creative design of the theme park and oversee the development plans.

While sharing only knowledge instead of cash, Disney will consistently collect royalties.

This Abu Dhabi project is separate from Disney’s plan to invest 60 billion USD in theme parks over the next decade.

The completion date for the Abu Dhabi theme park has not yet been announced.

Disney CEO Bob Iger explained that designing and planning the theme park typically takes about 18 to 24 months, and construction around five years. He added that it is premature to discuss a specific completion timeline.

On the same day, Disney also released impressive quarterly earnings.

The company reported that revenue for the second fiscal quarter, ending March 20, increased by 7% year-over-year to 23.62 billion USD, surpassing market expectations of 23.14 billion USD.

Disney rebounded from a loss of 20 million USD, or 0.01 USD per share, in the same period last year to a profit of 3.28 billion USD, or 1.81 USD per share, in the second fiscal quarter.

The adjusted earnings per share (EPS) of 1.45 USD significantly exceeded the market forecast of 1.20 USD.

Disney’s streaming service, Disney+, also showed strong performance.

Despite initial concerns about declining subscribers, Disney+ gained 1.4 million new subscribers. The total number of global subscribers reached 126 million, surpassing market estimates of 123.35 million.

Disney’s stock surged 10% in afternoon trading, reaching 101.41 USD.

Hot this week

Japan’s Steel Giant Takes Over US Steel: What It Means for American Workers

Nippon Steel acquires U.S. Steel for $14.1 billion, ensuring U.S. government oversight and maintaining its headquarters in Pittsburgh.

Trump’s Ultimatum to Iran Jolts Oil Prices into Unsteady Climb

Oil prices rose slightly as markets reacted to Trump's ultimatum to Iran, with WTI and Brent crude experiencing minor gains.

Wall Street Wobbles After Powell Says No Rush on Rate Cuts

U.S. markets closed mixed after the Fed maintained interest rates, with tech stocks like Tesla and Nvidia gaining amid cautious investor sentiment.

Apple Joins Google in Map Export Request, Vows Flexible Compliance

Apple seeks South Korean approval to export high-precision map data, offering to accommodate government demands unlike Google.

Wall Street Takes a Dive as Tensions Rise Over Iran

The New York stock market fell sharply due to rising tensions in the Middle East and declines in major tech and solar stocks.

Topics

Japan’s Steel Giant Takes Over US Steel: What It Means for American Workers

Nippon Steel acquires U.S. Steel for $14.1 billion, ensuring U.S. government oversight and maintaining its headquarters in Pittsburgh.

Trump’s Ultimatum to Iran Jolts Oil Prices into Unsteady Climb

Oil prices rose slightly as markets reacted to Trump's ultimatum to Iran, with WTI and Brent crude experiencing minor gains.

Wall Street Wobbles After Powell Says No Rush on Rate Cuts

U.S. markets closed mixed after the Fed maintained interest rates, with tech stocks like Tesla and Nvidia gaining amid cautious investor sentiment.

Apple Joins Google in Map Export Request, Vows Flexible Compliance

Apple seeks South Korean approval to export high-precision map data, offering to accommodate government demands unlike Google.

Wall Street Takes a Dive as Tensions Rise Over Iran

The New York stock market fell sharply due to rising tensions in the Middle East and declines in major tech and solar stocks.

Brent and WTI Climb Following Heightened Concerns Over Iran Conflict

Oil prices surged amid rising tensions in the Middle East, with fears of disruptions to Iranian oil exports following Trump's return.

Why Stablecoins Struggle to Compete with Credit Cards in America

Stablecoins lack consumer incentives compared to credit cards, limiting adoption despite potential in specific payment areas.

Wall Street Bounces Back: Stocks Rally Amid Iran-Israel Ceasefire Hopes

US stock indices rebounded on the 16th as reports emerged of Iran seeking negotiations amidst ongoing conflicts.

Related Articles