We’re learning more details about the breaking news this morning that Disney will create a theme park and resort complex in Abu Dhabi. Disney CEO Bob Iger and Disney Experiences Chairman Josh D’Amaro made the announcement from Abu Dhabi today, and we have more information about the deal structure that will be in place when the theme park opens sometime in the next decade.
Disney to Collect Royalties, Miral to Pay for Everything
The headline here is that Disneyland Abu Dhabi will not cost The Walt Disney Company money. The project development, build-out, and operations will be funded by Miral, a real estate development, management, and investment company that is well-known for its entertainment and cultural complexes on Yas Island in Abu Dhabi.
Officially, here’s how The Walt Disney Company describes the structure of the deal:
The new resort will be fully developed and built by Miral. Disney and its legendary Imagineers will lead creative design and operational oversight to provide a world-class experience. Miral, which has developed a number of family entertainment destinations on Yas Island, Abu Dhabi in collaboration with American and European brands, will operate the resort.
Additional color from Disney CEO Bob Iger was provided on CNBC this morning, with Iger noting that no two deals are the same, but that the closest comparison would be that of the Tokyo Disneyland Resort deal with the Oriental Land Company.
D’Amaro said that he and Iger were impressed by Miral and what they’ve done with the region. D’Amaro said that Disney would be responsible for all creative and design. He said that Disney would “lend a hand in operational expertise”, noting that Disney always strives to create a familiar, magical experience at any of its destinations around the world.
As noted in the press release, D’Amaro said that “Miral will fully fund the project”. Miral will also build the project, and when the project is fully built out, Miral will operate the theme park and resort.
Iger said that the deal is structured in a way that Disney will have total control of the design and creative of the park, but that Disney would have “considerable oversight” in the operations as well.
D’Amaro, sitting alongside Iger during the interview, said that “essentially this would be royalty-based”. D’Amaro said that Disney felt “very good” about the deal, but said that they wouldn’t go further into the details of the deal. He said that this offers Disney a way to reach brand new guests, and particularly younger guests, in that region of the world (on top of the royalties), makes this a really good deal for Disney.
Iger built upon that thought from D’Amaro, saying that anytime Disney has opened a theme park in a region of the world, the brand loyalty stock goes up. Iger pointed to Japan and the brand affinity in that country, noting that he expects a similar bump not only in the theme park division but also other parts of the company.
For more details about the Disneyland Abu Dhabi project, check out the original announcement below!
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