Dubai Parks and Resorts on track to open by October 2016

The company said most of the theme park’s procurement had been completed and 73 per cent of project structure work was complete

11 November 2015

Located in Jebel Ali, the Dhs 10bn project was first launched in 2012 by Sheikh Mohammed bin Rashid Al Maktoum. It will consist of three major theme parks: Hollywood-themed Motiongate Dubai, Legoland Dubai and Bollywood Parks Dubai along with Riverland, a grand entrance plaza and Lapita, a family themed hotel.

Dubai Parks and Resorts said that the procurement process for the project was 85 per cent complete while 73 per cent of project’s structure works had been finished. In October, the firm announced that it had installed the first roller coaster in Legoland Dubai. The ride is the largest in the park, standing 16 metres high with a speed of 60kph.

The company added that about half of the resort’s infrastructure had been built, indicating that the project will be ready to open to public next year.

“We have reached a critical milestone in the construction of the region’s first integrated theme park resort and are now less than 12 months away from the official opening of Dubai Parks and Resorts,” said chief executive Raed Al Nuami.

He added that Riverland - the park’s 220,000 square feet retail and dining district - has secured 12 lease proposals, accounting for 19 per cent of total leasing space. Riverland will have 50 outlets in total.

“Continuing the positive initial interest from tenants last quarter, these figures indicate we are likely to exceed the original expectations for lease revenue in our first full year of operations,” Al Nuami said.

Dubai Parks and Resorts, which raised Dhs 2.5bn last year through an initial public offering, said that it has spent around Dhs 4.8bn to date to build the project. The company spent Dhs 1bn in the third quarter alone, it added. Over 11,000 workers and 34 contractors are involved in the theme parks’ construction.

The theme park operator said that its assets stood at Dhs 7.6bn by the end of third quarter of 2015. It is projected to earn revenues of Dhs 2.4bn in its first year of operation and generate 5,000 jobs across the sector.

Upon completion, the theme park is also expected to boost Dubai’s tourism numbers.

“The opportunity for Dubai Parks and Resorts is very clear. Arrivals into Dubai International Airport increased by 12.4 per cent for the first eight months of 2015,” said Al Nuami.

“We are perfectly positioned to benefit from the country’s growing population and increasing numbers of inbound tourists.”

According to a report by audit firm PwC, the United Arab Emirates’ leisure and entertainment market has the potential to attract nearly 45 million visitors by 2021. The consultancy estimates that the market will attract around 30 million visitors over the next six years, with residents accounting for an additional 15 million.