Disney Confirms Abu Dhabi Theme Park Plans Remain Unchanged

Disney has confirmed in a letter to shareholders that its plans to develop a theme park in Abu Dhabi are on track one year after the project was announced. The theme park in Abu Dhabi will be the company's seventh resort worldwide and its first in the Middle East.

At the time of the announcement the company's chief executive said it will also be the most advanced and interactive destination in the company's portfolio. The company has said that a project of this scale could take a year or two to design and another four to six years to build.

In the letter the chief executive stated that "the strategic logic of our Abu Dhabi plans is unchanged. Under the arrangement the company will receive royalties from the park, creating a new source of cash flow. The location is positioned far enough from the company's existing parks that it is not expected to reduce attendance at those sites.

A third of the world's population is located within a four-hour flight of Abu Dhabi. The city already operates several large theme parks as part of a strategy to diversify its economy away from fossil fuels by attracting tourists and generating new revenue streams.

The company said the project has had a positive effect on its stock price. A government-backed developer has also confirmed its commitment to the project. The United Arab Emirates reported that its non-oil exports climbed 25 percent last year to $71.3 billion.

The country's investment minister told AFP that its sovereign wealth funds continue to operate with a long-term mandate despite regional conflict.