- Walt Disney’s (DIS) stock surged 8% this morning after the co. announced a partnership with Miral to develop a seventh theme park resort on Yas Island, UAE, fully funded by Miral with Disney earning royalties.
- The Abu Dhabi resort, leveraging the UAE’s access to 500 million tourists and 120 million annual air passengers, will feature advanced, interactive experiences blending Disney storytelling with local culture.
- This project, separate from Disney’s $60 billion theme park investment, follows a 6% revenue growth in its experiences division, enhancing Disney’s global reach without capital expenditure.
Walt Disney Co.’s (DIS) stock surged 8% to $99.50 in premarket trading on Wednesday following the announcement of a groundbreaking partnership with Miral to develop a new theme park resort on Yas Island in the United Arab Emirates, marking Disney’s seventh global theme park destination. This venture, fully funded and constructed by Miral, requires no capital investment from Disney, which will instead earn royalties while its imagineers spearhead creative design and operational oversight. The project, distinct from Disney’s $60 billion decade-long investment in its theme parks, aims to blend the company’s signature storytelling with Abu Dhabi’s cultural and futuristic essence, offering immersive entertainment, themed accommodations, and unique dining and retail experiences.
The strategic location of the UAE, within a four-hour flight of one-third of the world’s population, positions the resort to tap into a tourism market of approximately 500 million visitors annually, bolstered by the region’s status as the world’s largest airline hub, with 120 million passengers passing through Abu Dhabi and Dubai each year. Disney CEO Bob Iger emphasized the cultural alignment, noting Abu Dhabi’s appreciation for arts and creativity as a foundation for a resort that will integrate contemporary architecture with cutting-edge technology. Josh D’Amaro, Chairman of Disney Experiences, described the project as the most advanced and interactive in Disney’s portfolio, leveraging Yas Island’s waterfront to deliver innovative storytelling that celebrates both Disney’s heritage and the region’s forward-looking identity.
This announcement builds on Disney’s robust fiscal second-quarter performance, where its Experiences division, encompassing parks, cruises, resorts, and consumer products, reported 6% year-over-year revenue growth, contributing to a top- and bottom-line beat. The Abu Dhabi resort represents a low-risk expansion for Disney, aligning with its strategy to grow its global footprint without straining its capital resources. By partnering with Miral, Disney can extend its brand to a new demographic, reaching families in a region with significant tourism potential. The project underscores Disney’s expertise in creating emotionally resonant experiences, a hallmark of its theme parks since Disneyland’s opening in 1955, while adapting to modern expectations for interactivity and cultural relevance. Upon completion, the resort is poised to redefine theme park innovation, drawing millions to Yas Island and reinforcing Disney’s dominance in the global entertainment landscape.
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