Dubai Parks and Resorts’ expenditure tops $1bn
Second-quarter costs came to $218m as theme-park developer looks to meet October 2016 project deadline
Total expenditure by Dubai Parks and Resorts exceeded $1.03 billion as at the end of June, according to the latest filings by the theme-park developer.
The deadline for the $2.9 billion project, which will include Motiongate, Legoland and Bollywood theme parks, is in 14 months’ time, according to the Dubai Financial Market-listed firm.
Costs in the second quarter alone came to $217.79 million. By that same time period, 80% of the procurement requirements were completed, while project infrastructure stood at 57% complete. The construction team currently has 9,000 workers employed on the site near Jebel Ali in Dubai.
IN PICTURES: Dubai’s theme-park megaproject under construction
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TOPIC: Theme parks
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“Our second quarter 2015 financial results are in line with our plans,” said Raed Al Nuaimi, CEO of Dubai Parks and Resorts. “During this period, there were no operating revenues and the losses were $7.89 million for the period ended June 30,” he said in a Gulf News report.
The developer’s total assets were $1.90 billion at the end of the second quarter.
Al Nuaimi said that first revenues will come in towards the end of 2016, once the theme park opens for business in October of that year. It estimates that its first full year of operations will deliver $653.3 million through ticket sales and ancillary revenues.
“In April, we announced our first revenue generating deal with Picsolve International to create one of the world’s largest photography integrations which is expected to generate over Dh100 million over a five-year period,” said Al Nuaimi.
“Our integration into the existing Dubai tourism infrastructure became more pronounced this quarter as we signed a memorandum of understanding with DNATA to be the preferred travel partner. This is an important agreement as it connects Dubai Parks and Resorts with DNATA’s extensive travel portfolio to promote the sale and distribution of tickets and visitor packages to customers across the globe.”
IN PICTURES: Dubai’s theme-park megaproject under construction
READ MORE: Rides start arriving at $2.9bn Dubai Parks and Resorts project
TOPIC: Theme parks
READ MORE: Dubai Parks and Resorts construction underway
READ MORE: Dubai theme parks ‘to generate $5bn by 2020’
READ MORE: UAE theme parks to attract 18m visitors by 2021, PwC says
