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Annual Report 2014 English Dubai Parks and Resorts | Annual Report 2014 Dubai Parks FROM VISION TO REALITY ANNUAL REPORT 2014 Kung Fu Panda © 2015 DreamWorks Animation © 2015 DreamWorks Panda Fu Kung Contents 2 Chairman’s statement 4 CEO’s statement 6 At a glance 10 Highlights of 2014 14 Executive management 16 The investment case 19 Corporate and operational review 30 Corporate governance 32 Financial statements Dubai Parks and Resorts will become the largest multi-themed, year-round leisure and entertainment destination in the Middle East region, providing memorable world-class attractions such as motiongate™ Dubai, LEGOLAND® Dubai, Bollywood Parks™ Dubai, LEGOLAND® Water Park, and the Polynesian-themed Lapita™ Hotel. All are linked by a grand entrance plaza, Riverland™ Dubai, a retail and dining area which will serve both park visitors and UAE residents. The 25 million sq ft resort is set for official opening in October, 2016 and will create a family entertainment industry supporting Dubai’s status as a leading international tourism and leisure hub. Chairman’s statement EVERY JOURNEY BEGINS WITH A VISION 2 Dubai Parks and Resorts / Annual Report 2014 The leadership and vision of the UAE government has always been a source of inspiration, and Dubai Parks and Resorts is a tangible result. Dubai Parks and Resorts is working towards achieving the goals of UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, who mandated the development of this unique project that will benefit both the residents and tourists of Dubai. As we advance towards completion, Our goal is to make Dubai Parks and With our compelling attractions, Dubai I know it will remain a source of great Resorts the foremost provider of Parks and Resorts is set to capture pride for all of us who have been world-class leisure and entertainment the significant growth opportunity involved in its concept and execution attractions in the region and, ultimately, represented by creating the Middle – as it will for the entire population across the globe. This aligns with East’s first premier year-round leisure of Dubai and the UAE. Dubai’s Tourism Vision 2020 – to be and entertainment destination. innovative, inspirational, and practical. Here at Dubai Parks and Resorts, we We are confident that our efforts will Strong demographic growth and have encapsulated a concept that contribute to achieving that vision and favourable economic conditions within is both ambitious and truly ground- Dubai Parks and Resorts becoming a the UAE and the wider region will drive breaking, which captures the source of pride for the UAE. In doing so, strong local demand, and Dubai’s imagination that has shaped the growth we will become an engine for national location and world-class tourist of the UAE. While Dubai is already home economic growth by generating robust infrastructure will support our growth. to the world’s tallest tower, the world’s business opportunities and thousands The leadership and vision of the UAE busiest airport, and a spectacular of new jobs. skyline, we take great pride in knowing government has always been a source that Dubai Parks and Resorts is a major From the very beginning, we were of inspiration, and Dubai Parks and step towards positioning the UAE conscious of the need to balance our Resorts is a tangible result. As we further as a major global tourist vision with practicality, recognising the advance towards completion, I know it destination, and fulfilling Dubai’s goal obstacles we would have to overcome will remain a source of great pride for of attracting 20 million visitors by 2020. while meticulously planning our way all of us who have been involved in its forward. Now, close to two years after concept and execution – as it will for the Dubai Parks and Resorts has been the idea of Dubai Parks and Resorts entire population of Dubai and the UAE. designed as the first entertainment was first announced, we are well on our destination of its kind – simultaneously way to bringing this dream into reality opening the gates of three unique – step by step, from drawing board to theme parks in October, 2016, a completed project. monumental undertaking in its own right. This project will feature The benefits of this practical approach intellectual properties from globally are evident. The project is taking shape recognised and well-loved movies in the form of advanced site works HE Abdulla Al Habbai and brands, bringing leaders and and construction as we progress rapidly Chairman experts from the global leisure and towards our Grand Opening next year, entertainment industry to create a and the creation of a unique destination: family destination that is expected a reality that will be shared by many to draw 6.7 million visits in 2017, our millions of visitors from all over the world. first full year of operation. 3 CEO’s statement At Dubai Parks and Resorts, we are committed to creating an unforgettable destination. Throughout the course of our journey, Dubai Parks and Resorts is built By the end of 2014, 88 percent of the we have sought to create a truly unique on the belief that every aspect total design had been completed, 100 experience that will have our visitors of the park needs to be thoroughly percent of all theme park rides were talking about their stay long after they designed to ensure maximum procured, and 64 percent of resort-wide leave – and keep them coming back again customer satisfaction. utilities and roads were finished. All and again. Since the inception of this major agreements with IP partners and landmark project, we have been rigorous Examples of this are the ‘smart’ park operators were also in place. when developing every facet of Dubai technology that will be created through Parks and Resorts – from our themes, to an agreement with Etisalat for overall We have also signed a collaboration our partners and our unique attractions. IT strategy, and a vehicle-free destination agreement with Emirates, which will served by dedicated on-site transport. enable our Destination Management In 2014 we reached many significant A dedicated Dubai Metro station is also team to reach our visitors across the milestones in this respect, including the planned, along with convenient road globe as well as exchange knowledge launch of Dubai Parks and Resorts as access and ample parking within easy and expertise, specifically around an identifiable destination brand and reach of all attractions. Our vision marketing co-ordination. a symbol of Dubai’s commitment to is to make Dubai Parks and Resorts attracting 20 million visitors by 2020. a fully immersive experience where In the last quarter of 2014, we secured Dubai Parks and Resorts completed the visitors can relax and enjoy their time AED 4.2 billion of syndicated finance development of the motiongate™ Dubai with their families. facilities and successfully closed our and Bollywood Parks™ Dubai brands AED 2.5 billion stock market listing on – unique concepts which will feature In motiongate™ Dubai we have the Dubai Financial Market. We remain the well-known and beloved intellectual handpicked movies that are well-loved close to our founders, Meraas, who hold properties belonging to our partners Sony in the region and in many cases will be 60 percent of our equity. Picture Studios, DreamWorks Animation, integrated into a theme park attraction and Lionsgate, as well as a selection for the first time, such as The Hunger Looking forward of Bollywood blockbuster movies. Games, Ghostbusters, and How to In the first half of 2015, we expect Train Your Dragon, among others. Our to complete procurement of facility We also look forward to hosting the first Bollywood Parks™ Dubai is the first packages and to begin procurement LEGOLAND® experience in the region, of its kind in the world, and the movies of show packages. along with the LEGOLAND® Water Park, have a large fan base across the GCC the region’s first dedicated water park for and Indian subcontinent. We plan to achieve a cumulative total younger children. Over the past year we of AED 7.5 billion in contracts awarded have also developed the Riverland™ Dubai One of our great strengths is in being in the course of the year, and cumulative concept, which is a destination in its own the only destination of its kind in the project expenditure is set to reach right, serving as a grand entry plaza with world, and the only multi-themed AED 5.9 billion. By the end of 2015, we unique dining and retail outlets providing leisure and entertainment destination plan to have completed all underground non-stop entertainment as it ushers in the Middle East and Indian sub- utilities resort-wide and more than visitors to our three main theme parks. continent – meaning that we are set 70 percent of facilities construction. Our destination would not be complete to lead the industry. Dubai was one of without the Lapita™ Hotel, where the world’s top five fastest-growing In 2015 we plan on signing a number our guests can relax and spend time economies in 2014 and is expected to of strategic deals, such as our first with their family and friends within attract close to 20 million tourists by revenue-generating deal with Picsolve a Polynesian-themed resort. 2020. As an innately Dubai company, International, one of the world’s leading we are very conscious of our position image solutions providers, partnering with In short, Dubai Parks and Resorts will be to both benefit from and hopefully Wizcraft International Entertainments, the only destination in the world offering contribute towards these numbers. India’s leading communications and the best of Hollywood, kids’ entertainment, entertainment company, to bring a and Bollywood, from East to West, all On time and on budget Broadway-styled Bollywood show to the in one place and providing families with With budgeted development costs Rajmahal Theatre, and an agreement quality fun throughout the year.
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