Dubai Parks and Resorts posts Dh29m loss but on course for 2016 opening

Ongoing work at the MotionGate site project at the Dubai Parks & Resorts theme park in Jebel Ali, Dubai. Satish Kumar / The National

Dubai Parks and Resorts posted a Dh29 million loss in the second quarter while confirming the start of its Dh10.5 billion project in October next year.

The theme park operator did not give a comparable figure for the second quarter of last year because it was listed only last December. Because the park is under construction, it did not have revenue to report. The park operator posted a first-quarter loss of Dh13m.

“The first revenues are expected towards the end of 2016 following the opening of the parks to the public,” the Dubai-listed company said.

Dubai Parks and Resorts, part of Meraas Holding which is owned by Dubai’s ruler, is forecasting revenue of Dh2.4bn in its first full year of operation.

Its total project expenditure, which includes land acquisition, reached Dh3.8bn at the end of the second quarter, up 27 per cent from Dh3bn in at the end of the previous quarter. Total assets reached Dh7bn at the end of the second quarter.

About 57 per cent of the infrastructure construction at the project is complete, while ride engineering and manufacturing is 52 per cent finished. Construction on the site off Sheikh Zayed Road started in February last year.

The theme park complex comprising attractions such as Legoland, Motiongate and Bollywood Parks expects to attract 5.5 million visitors in 2017.

The park is projected to generate an annual growth in visitor numbers of between 9 and 11 per cent after 2017.

Dubai is counting on its entertainment and theme parks sector to help it maintain its rapid growth in tourist arrivals, which it plans to nearly double to 20 million by 2020.

Dubai Parks and Resorts shares fell 2.3 per cent to Dh1.24 in Dubai.

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