Walt Disney Co. (NYSE: DIS) shares surged as much as 10% on Wednesday after the company unveiled plans for a major new theme park and resort on Yas Island, Abu Dhabi-marking Disney’s first significant expansion into the Middle East and its seventh global resort destination.
The announcement, made in partnership with Abu Dhabi’s Miral Group, coincided with Disney’s robust second-quarter earnings, fueling investor enthusiasm and sending the stock sharply higher.
The new waterfront resort will be built and operated by Miral, with Disney providing creative leadership and operational oversight. Disney will earn royalties from the park’s revenue but will not directly invest capital in the project. The Abu Dhabi park is set in a thriving tourist hub, already home to attractions like Warner Bros World and Yas Waterworld, and is expected to open in the early 2030s.
Disney CEO Bob Iger described the project as “authentically Disney and distinctly Emirati,” emphasizing the company’s commitment to blending its iconic stories and characters with the unique cultural heritage of Abu Dhabi. The park is anticipated to draw visitors from across the Middle East, Africa, India, Asia, and Europe, further expanding Disney’s global reach.
The announcement is part of Disney’s broader strategy to invest $60 billion over the next decade in its Experiences division, which includes theme parks and cruise lines. This division has become an increasingly important financial engine for Disney, accounting for nearly 60% of operational income in the last fiscal year.
The company’s U.S. parks have recently seen a rebound in attendance and spending, while international resorts remain a key growth focus despite some challenges in China.
Disney’s stock rally reflects optimism over the company’s ability to leverage its brand in new markets and capitalize on rising demand for immersive entertainment experiences.
The Abu Dhabi project, coupled with strong quarterly earnings and subscriber growth in Disney+, has reignited investor confidence and positioned the company for continued momentum in both its core and emerging markets.