Disney is planning its first theme park in the Middle East, located in Abu Dhabi, through a partnership with the state-backed Miral Group. This move targets the increasingly affluent consumers in the region.
Bob Iger, Disney’s chief executive, stated that the Abu Dhabi park will be accessible to “hundreds of millions of people” with disposable income who are currently too far from existing Disney parks. Iger remarked that bringing their product to this location would prevent any cannibalization of their other sites.
The announcement coincided with a near 10 percent surge in Disney shares following an optimistic financial outlook, attributed to price increases in streaming services and strong attendance at US theme parks, surpassing Wall Street expectations last quarter.
Disney will design and operate the new park, marking its seventh globally, with royalties paid by Miral, the Abu Dhabi state-owned developer tasked with providing all capital. The park is set to be on Abu Dhabi’s Yas Island, a location aimed at attracting visitors from the Middle East, Africa, India, Asia, and Europe.
For many potential visitors, obtaining a visa for the United Arab Emirates is more straightforward compared to Europe or the US, where other Disney resorts are based. Abu Dhabi, rich in oil resources, aims to further boost tourism and already hosts Sea World, Warner Bros theme parks, and the Louvre and Guggenheim museums as part of Miral’s portfolio. This will be Disney’s first new park since Shanghai Disneyland opened in 2016.
In 2023, Iger outlined a 10-year, $60 billion investment in Disney’s experiences business, including major expansions in Florida and California parks. However, no opening date for the Abu Dhabi park has been announced.
Disney forecasted a strong remainder of its financial year in entertainment, sports, and theme parks, though noted uncertainty in the operating environment due to questions surrounding US President Donald Trump’s tariff policies.
Several guidance metrics were boosted, with Iger expressing optimism about the company’s direction and outlook for the fiscal year. Disney reported a net income of $3.28 billion in the second quarter, turning around from a $20 million loss a year earlier, exceeding Wall Street’s $1.88 billion expectation. Revenue increased by 7 percent to $23.6 billion, and adjusted earnings per share rose 20 percent from the previous year, surpassing analysts’ forecasts.
Despite concerns over US consumer spending, Disney’s parks in Florida and California thrived, with revenue increasing by 9 percent compared to the previous year. Guest spending and the cruise business, enhanced by the Disney Treasure ship launch in early 2025, grew as well. However, attendance declined at Shanghai Disney Resort and Hong Kong Disneyland.
Price hikes for Disney+ and Hulu increased streaming revenue by 8 percent year-over-year, though the company anticipates only modest subscriber growth in the current quarter. Together, the streaming services hold about 180 million subscribers. Disney shares had fallen over 17 percent since January before Wednesday’s recovery.
