Dubai Parks and Resorts, the company developing a mega theme park project in the emirate, said that it expects to earn revenues worth Dhs2.4 billion during the first year of its operations.
In its preliminary unaudited financial results, the Meraas Holding subsidiary said that its revenues will originate through ticketing, hotels and retail segments in the project.
The development is also expected to create around 5,000 jobs across the sector.
“Our 2014 financial results are in line with our plans,” said Raed Al Nuami, CEO, Dubai Parks and Resorts.
“During the year our total assets grew to Dhs6.9 billion and of which the cost of project under construction and land acquired amounted to Dhs2.6 billion, an increase from Dhs340 million. There were no operating revenues during the year and the accumulated loss was Dhs38 million as at the end of 2014.
The company expects to start earning its revenues by the end of 2016, the date when the mega theme park is scheduled to begin operations.
Dubai Parks & Resorts project is a Dhs10 billion mega development announced by Sheikh Mohammed bin Rashid Al Maktoum in 2012.
Located in Jebel Ali, the project will have three main theme parks namely Hollywood-themed Motiongate Dubai, Legoland Dubai and Bollywood Parks Dubai. The mega project will also feature Riverpark – a grand entrance plaza and Lapita, a family themed hotel.
The company listed in Dubai last year, raising Dhs2.5 billion from the sale.
“We have secured the financing to fund the construction of what will become the Middle East’s largest multi-themed leisure and entertainment destination through an Dhs4.2 billion finance facility and Dhs2.5 billion of equity raised in our December 2014 DFM listing,” said Al Nuami.
He added that the project was on track to be opened by 2016.
“By year end, we had completed over 50 per cent of the resort wide roads and utilities infrastructure and 100 per cent procurement of all theme park rides.”
Dubai Parks & Resorts has also signed operator agreements with Parque Reunidos Servicios Centrales, Merlin Entertainments and the Marriott Group.
Local developers are increasingly turning towards mega leisure ventures in a bid to tap into the emirate’s tourism boom.
In 2014, Dubai announced the launch of a massive indoor theme park project in its Mall of the World project. Meanwhile, another major them park, the $1 billion IMG Worlds of Adventure is also taking shape in Dubai’s City of Arabia.