Disney, Abu Dhabi and theme park economy at ‘crossroads’ of world

Disney’s announcement last week that its newest theme park will be in Abu Dhabi offers further confirmation of the status of the United Arab Emirates as a global consumer crossroads located in the Middle East. At the center of the UAE’s economic engine is man-made Yas Island, located 20 minutes from the center of Abu Dhabi and which first began development in 2006 for the Formula 1 Abu Dhabi Grand Prix. Since that 2009 debut for F1 in the region, Ferrari World, Yas Waterworld, Warner Bros. World, and SeaWorld Yas Island have followed. By 2024, Yas Island’s traffic hit 38 million visitors.   

“The UAE in many respects is the crossroads of the world,” Iger said of Disney’s decision. “About 500 million people that are income qualified, meaning they can afford to visit one of our parks, live within a four-hour plane trip here.” 

The UAE is the second-largest economy in the Arab world, after Saudi Arabia, and the more diversified market-based economy. Since the mid-2000s, Abu Dhabi has been actively pursuing new economic opportunities, with major efforts accelerating in the 2006–2008 period under its strategic Economic Vision 2030 plan, when Yas Island development began. A 6-8 hour flight from 80% of the world’s population — and boasting the largest global airline hub in the world, clocking 120 million passengers each year — the strategic geography, massive investment, and major consumer attractions situate Yas Island to continue to expand its status as a global consumer epicenter. 

“Abu Dhabi continues to be a destination of choice for the world,” said Mohamed Khalifa Al Mubarak, chairman of the Department of Culture and Tourism Abu Dhabi, and Chairman of Miral — the developer of Yas Island, which will fully develop and build the park working with Disney Imagineers.

Historically, Dubai has led the way in diversifying away from reliance on oil, but Dubai has always been more dependent on non-oil revenue to drive its economy. Its crude reserves pale in comparison to Abu Dhabi, with just 1% of its GDP coming from oil. By comparison, Abu Dhabi holds 90% of the UAE oil reserves, and draws 60% of its GDP from petroleum. Included in the UAE economic plan is a target of reducing oil revenue to less than 40% of its GDP.  

The consumer economy is a key part of the plan, but the UAE’s future is far from centered only on creating more tourist attractions. Karen Young, senior research scholar at the Center on Global Energy Policy at Columbia University, said the center of Abu Dhabi’s economic significance remains finance. 

“Abu Dhabi is a finance capital, led by its multiple sovereign investment vehicles,” she said. The Disney park is another display of that economic power. “Its power comes from its ability to deploy capital, not attract tourism,” Young said. 

Disney will not be investing capital in the project, although it does have current plans to invest $60 billion in other theme parks around the world.

The UAE’s investment strength isn’t just on display at home, but expanding to many U.S. projects as well, including recent deals to power AI infrastructure within the country.

“The theme park is a nice addition to other attractions in Yas island, and is an effort to bring quality of life amenities to residents and tourists,” Young said. But she added, “Dubai’s economy is much more dependent on tourism.”

As a result of its greater need, Dubai’s success with consumer attractions has been more uneven than Abu Dhabi’s, according to experts, which deliberately chose a slower growth model given its significant oil reserves — it gave a financial lifeline to Dubai following the 2008 financial crisis. But the move toward a more diversified economy is showing signs of major acceleration with the Disney deal. 

Overall, the UAE “is absolutely in a growth mode,” said Dennis Speigel, Founder & CEO of International Theme Park Services, an industry consultant. Abu Dhabi and Yas Island have built on demand at a proper pace, he says, developing a critical mass of leisure entertainment. While Dubai, Saudi Arabia, and Qatar have all been trying to attract Disney going back as far as a decade, Speigel said Yas Island is the right location for a Disney theme park in what he referred to as the final frontier for leisure development.

Disney isn’t saying when the park will open, with executives only pointing to general theme park construction timelines, which can take up to five years from design to development and buildout. As construction of the Disney park proceeds, it may face questions about worker conditions, which have long been an issue of controversy in the region’s development boom. But for now, Speigel says, “bringing the Disney organization’s commitment to Abu Dhabi and Yas Island demonstrates that this area within the UAE has reached the pinnacle of entertainment.”