Abu Dhabi looks to attract more Hollywood blockbusters with 'future-proof' studio

Twofour54 in Abu Dhabi has revealed plans for a 40-hectare studio facility that will be fully equipped to handle large productions as well as virtual and metaverse projects.

Called twofour54 Studios, it will be located in the extended area of Khalifa Industrial Zone Abu Dhabi. The facility will comprise 11 soundstages, six adaptable sets and a 3,000 square-metre water tank. It will also feature 7,000 square metres of office space and a host of other facilities equipped for film and TV production, post-production and screenings.

Designed to be “future-proof”, the studio comes as a response to growing demands in the filmmaking landscape in the UAE and wider region. It also aims to bolster Abu Dhabi’s appeal as a global production destination. Twofour54 Studios will complement the company’s flagship site at Yas Creative Hub, as well as its other production facilities across the capital.

Twofour54 Studios will complement the company’s flagship site at Yas Creative Hub. Photo: Twofour54

“The creative industries have been identified as one of Abu Dhabi’s priority sectors given the important economic and social value they create,” said Humaid Matar Al Dhaheri, managing director and chief executive of Adnec Group, twofour54’s parent company.

“We are proud to drive Abu Dhabi’s vision of becoming a leading global destination for content creation through twofour54 Studios. It will take film and TV production to the next level, creating jobs and contributing to the local economy following its completion in 2025.”

Mark Whitehead, chief executive of twofour54, said the facility comes as a response to the demand for “an integrated, future-ready production destination” in the region.

“Twofour54 has facilitated thousands of productions over the last 15 years, establishing a compelling track record and building a deep expertise of the global film industry’s demands,” he said.

“We remain steadfast in our mission to foster creativity, nurture talent and provide a world-class platform where visionaries can bring their cinematic dreams to life.”

Since twofour54 was launched in 2008, the media free zone has been pivotal in attracting international blockbusters to Abu Dhabi. Hollywood franchises including Mission: Impossible, Dune, Star Wars and Fast and Furious have all shot key scenes in the UAE capital, as have Bollywood hits Bharat and Tiger Zinda Hai.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

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