Disney Announces New Theme Park Resort in Abu Dhabi

In a major announcement signaling its expansion into a new global market, The Walt Disney Company has unveiled plans for a new theme park resort destination located in Abu Dhabi.

This project marks Disney’s entry into the Middle East region and is particularly notable as it represents the company’s first announcement of a new global resort destination in 15 years, following the news of Shanghai Disneyland in 2010. The announcement was made on Wednesday, shortly after Disney reported stronger-than-expected second-quarter earnings.

 

Introducing Disneyland Abu Dhabi

The new resort destination is planned to be named Disneyland Abu Dhabi, becoming Disney’s seventh global resort destination. The addition of a major theme park complex in the Middle East is a strategic move aimed at tapping into a vast new market and further diversifying Disney’s global footprint in its highly profitable Parks, Experiences and Products division.

 

Strategic Location on Yas Island

The site selected for the new Disney Resort is Yas Island in Abu Dhabi, United Arab Emirates. Yas Island is already a well-established leisure and entertainment hub, known for hosting a variety of attractions. Miral, an Abu Dhabi based company, will play a crucial role in the project, undertaking the full development, building, and operation of the resort.

 

However, Disney will maintain creative control and operational oversight, with Disney Imagineers leading the design and artistic direction to ensure the park meets Disney’s standards and vision. The initial project plan includes one theme park and an as-yet-undetermined number of hotels. The potential opening timeline is set for the early 2030s.

 

Yas Island’s existing infrastructure, which includes other major theme parks like SeaWorld Yas Island Abu Dhabi, Yas Waterworld, and Warner Bros. World, a golf course, marina, waterfront, mall, and numerous eateries, provides a pre-existing tourism ecosystem that Disney can leverage upon its arrival.

 

Market Potential in the Middle East

The decision to build in Abu Dhabi is strategically driven by the immense market potential in the surrounding region. Abu Dhabi and nearby Dubai boast ambitious airport plans, aiming to connect a third of the world’s population within a four-hour flight radius.

 

This includes easy access to approximately 1.4 billion people living in India, many of whom would find travel to Abu Dhabi significantly shorter than to Disney’s parks in Shanghai or Hong Kong. Josh D’Amaro, the chairman of Disney Experiences, highlighted the demographic potential, noting that a potential 500 million people in the Middle East region have the economic means to visit a Disney theme park. This ease of access, coupled with the United Arab Emirates’ reputation for future-oriented development and investment in infrastructure, were key factors in Disney’s decision.

 

D’Amaro stated there was “no question that for our seventh resort, this is where it was going to be.” Industry experts like Dennis Speigel, owner of International Theme Park Services, echoed this sentiment, noting that while the Middle East theme park market has seen challenges in the past, the established critical mass of leisure development on Yas Island provides the necessary elements for Disney to enter the area in a more manageable way.

 

Designing for Local Culture

A crucial aspect of Disney’s plan for the Abu Dhabi Resort is its commitment to ensuring the park reflects its specific location. Josh D’Amaro emphasized in an interview that it’s important not to simply replicate a theme park that exists elsewhere and “plop it into the ground” in a new area.

 

Instead, each park needs to reflect, in its design, food offerings, and experiences, the unique culture and character of its location. He stated, “And so here in, in Abu Dhabi, we want the same thing.” This suggests that while the core Disney magic will be present, visitors can expect elements that are specifically tailored to resonate with the culture of Abu Dhabi and the broader Middle East.

 

A Vision for Innovation and Waterfront Access

Disney has grand plans for the technological advancement of the Disneyland Abu Dhabi Resort. The company stated that this new venture will be its most technologically advanced park to date, designed to blend seamlessly with Abu Dhabi’s own modern, future-oriented aesthetic. While traditional Disney resorts are typically anchored by a castle park, the artist rendering provided by Disney for the Abu Dhabi park’s centerpiece shows a distinct spiraling, crystal-like structure, moving away from the more traditional fairytale-style landmarks.

 

Furthermore, the property will be the first Disney Resort to sit directly on a waterfront with accessible areas for guests, offering unique design and experience possibilities that differ from other Disney parks like Tokyo Disney Resort, where the ocean is visible but not directly integrated into the guest experience within the park walls.

 

Disney is also looking to leverage its recent investments in immersive gaming and technology. D’Amaro provided an example of potentially using tools like Unreal Engine, commonly used in filmmaking and game development, to pull imagery and stories directly into theme park attractions in real-time, enhancing guest immersion. He expressed strong optimism about this area, particularly given the planned tech-forward nature of the Abu Dhabi park.

 

Navigating the Regional Market Challenges

Despite the strategic advantages and technological ambitions, the decision to build a major theme park in the Middle East also comes with acknowledged challenges. As theme park consultant Dennis Speigel noted, the region has seen a mixed track record with theme park and leisure development in the past.

 

Early developments in Dubai were sometimes considered “over capitalized and frankly overbuilt,” and Speigel, who has consulted for investors in the region, pointed out that several theme parks in Dubai and Saudi Arabia “struggled and showed no profit for at least 10 years.” However, Speigel believes Disney has chosen the “right spot within the region” in Abu Dhabi, suggesting the existing leisure infrastructure provides a more stable foundation for Disney’s entry compared to developing in a less established area.

 

The Business Engine: Disney Parks’ Performance

The announcement of a new Disney theme park comes at a time when the Parks, Experiences and Products division is arguably Disney’s most important financial driver. In the 2024 fiscal year, the parks segment represented a significant 59% of the company’s operating income. While domestic park attendance saw a modest decrease last year, Disney reported a rebound in the first quarter of 2025, with US park attendance rising again and revenue surging.

 

International parks have shown more growth in attendance and guest spending historically. However, recent challenges in China, exacerbated by trade tensions, impacted performance in the first quarter of 2025, with attendance falling in Shanghai and Hong Kong and international park sales tumbling as a result.

 

This highlights how adding strategic locations around the world can help Disney balance out fluctuations in attendance and performance across different regions affected by global economic or political factors. Disney CEO Bob Iger commented on the resilience of Disney theme parks, stating they are “incredibly resilient” and perceived as “really special” experiences by consumers, even amidst economic uncertainty.

 

Competition and Confidence

The global theme park landscape is highly competitive. The announcement of Disneyland Abu Dhabi follows recent news from Universal about building its seventh resort in the United Kingdom and comes just weeks before Universal’s major Epic Universe theme park opens in Central Florida.

 

However, Disney executives have publicly dismissed concerns that new competition, particularly in Florida, would negatively impact attendance at Walt Disney World. Josh D’Amaro stated that new openings in Central Florida typically bring more tourists to the area overall, and these tourists are still likely to visit Disney parks. He commented on CNBC that visitors won’t come to Central Florida and not visit Star Wars areas in Disney’s parks, expressing confidence that Disney will “benefit” from the increased tourism driven by new attractions from competitors.

 

Strong Company-Wide Earnings

The announcement was timed with Disney’s reporting of strong overall financial results for the second quarter. The company delivered total revenue of $23.6 billion, a 7% increase year-on-year, and operating income of $4.4 billion, a 15% increase. This strong performance was supported not only by the resilience and growth in the Disney Parks but also by positive results in other key segments.

 

The entertainment streaming businesses, including Disney+ and Hulu, performed strongly, delivering $10.7 billion in revenue and $1.3 billion in operating income. Disney+ saw significant subscriber growth in Q2, adding 1.4 million subscribers to reach 126 million total, recovering losses from Q1.

 

Hulu also added 1.3 million subscribers. The direct-to-consumer operating revenue climbed substantially, rising to $336 million from $47 million in the prior year. The sports segment also saw revenue growth, increasing 5% to $4.5 billion, although operating income decreased due to higher programming costs for additional live sports events, which in turn boosted domestic advertising revenue.

 

Future Outlook and Strategy

Looking ahead, Disney projects continued growth in the third quarter, including a modest increase in Disney+ subscribers and double-digit increases in both entertainment and sports segments. However, the company maintained a cautious tone regarding the future operating environment due to ongoing macroeconomic headwinds and uncertainty for the balance of the fiscal year, as stated in their earnings report.

 

Regarding future Disney Parks investment beyond Abu Dhabi, Josh D’Amaro mentioned that the company is focusing on aggressive expansion projects within the existing four parks at Walt Disney World rather than announcing a fifth gate, placing the Abu Dhabi resort within a broader strategy of both new market entry and significant reinvestment in existing, high-performing assets.

 

A Bold Step for Disney Parks

The announcement of the Disneyland Abu Dhabi Resort marks a bold and strategic step for The Walt Disney Company, representing its first new global resort destination in 15 years and establishing a presence in the potentially lucrative Middle East market. Located on Yas Island and developed in partnership with Miral, the resort is envisioned as Disney’s most technologically advanced park, featuring a unique design and waterfront access, while also reflecting the local culture.

 

The decision is underpinned by the strong financial performance of Disney Parks and the strategy to access new markets and balance global economic fluctuations, despite past challenges in the regional theme park market and ongoing global competition. This long-term investment highlights Disney’s confidence in its brand and its vision for the future of immersive entertainment on a global scale.