Ruwaad plans to build $2.5b resort in UAE

DUBAI — Ruwaad Holdings, the UAE-based developer of iconic destinations and a wholly owned subsidiary of the Dubai 9 Group, yesterday announced it would be developing a $2.5 billion destination resort in the UAE.

By Lucia Dore (Assistant Editor, Business)

Published: Wed 27 Jun 2007, 9:12 AM

Last updated: Sat 4 Apr 2015, 10:37 PM

Alongside a Paramount-Pictures-branded theme park, there would also be boutique hotels and resorts, large themed retail areas and adjoining lifestyle properties.

The development would have a significant positive impact on the UAE economy in terms of job creation and strengthening the UAE's tourism and hospitality base, group CEO of Ruwaad Holdings, Hayan Merchant, said. The projected $2.5 billion financing requirement is based on detailed feasibility studies and excludes the cost of land, he added. The location for the development has not yet been identified.

Newly-appointed CEO of Ruwaad Destinations, Derrell Metzger, said that based on his experience of running a theme park on the Sentosa Islands in Singapore "property values can accelerate significantly if the destination is well run," sometimes by up to 300 per cent.

To execute the Paramount-Pictures-branded theme park Ruwaad has entered into a long-term licensing agreement with Paramount Licensing. This will give Ruwaad access to the Paramount Pictures' intellectual property library — one of the largest of any Hollywood studio — and its intellectual capital through the oversight of planning and design aspects. It will not be investing any money in the project.

Under the licensing agreement, an affiliate of Ruwaad, International Destination Brands Limited, will be responsible for the financing. Merchant said that the funds and "a creative financial structure" are in place.

The Paramount-Pictures-branded theme park will be the entertainment hub of the family destination, which will feature rides, shows and attractions developed around Paramount Pictures' 95-year old film library, Merchant explained. The park would also be the first in the world to have a blend of Hollywood, Bollywood and Arabian motion picture entertainment content to address the family entertainment needs of existing and future global tourism trends, he said.

Executive vice-president and head of Paramount Licensing, Michael Bartok, also said: "We are in the process of creating content. The 'signature' attractions will be based on block-buster films," some which will be recognised globally, some regionally, he said. "Any visitor to the UAE will enjoy them. It is about creating great stories and playing to the human emotions," he added.

Paramount Pictures' catalogue includes Academy Award-winning films such as Titanic, Braveheart and Forrest Gump, as well as classic and current hits including The Godfather, Breakfast at Tiffany's, Grease, Saturday Night Fever, Top Gun, Mission: Impossible, Charlotte's Web, Nacho Libre, and Dreamgirls.

Ruwaad and Paramount Licensing are also exploring opportunities for other developments in the Middle East and Africa, and Ruwaad would like "two or three destinations either in the design, planning or construction phase at any time," said Merchant.

The announcement means that the UAE residents now know slightly more about Ruwaad than they did nearly two weeks ago after Merchant spoke to Khaleej Times to explain more about the company. At that time he said: "It's time Ruwaad communicates who it is, its vision and its objectives," and added: "It is important for us to communicate that this is part of a long branding strategy."

Certainly, after nine months of seeing billboards and taxis around the UAE splashed with the company's red, white and black logo, and a tagline reading "an iconic property developer," it was about time the company came out with something more concrete, although most of those who attended the press briefing would still say that there was still not enough detail.

For example, Merchant would not provide any details about construction plans and refused to give any timescale for delivery of the development. He said: "We will not make exorbitant comments about what we can achieve. We will release details when appropriate." He then added: "An announcement with more specific details will be made in the fourth quarter."