Next step in development? Entertainment sector grows in Mideast

Signs that an emerging-market economy is turning into a developed economy might include a robust technology sector or a thriving manufacturing sector. But in the Mideast, it may be the entertainment sector. 

Disney (NYSE: DIS) has just announced plans for a theme park in Abu Dhabi. It joins SeaWorld (NYSE: PRKS) and Warner Bros. (NASDAQ: WBD), which also have parks in the emirate, Legoland with a park in Dubai, and Six Flags (NYSE: FUN) with a park that’s scheduled to open this year in Riyadh, Saudi Arabia. 

Also in Abu Dhabi, there’s Ferrari World, based on the car brand (NYSE: RACE). And Sphere Entertainment (NYSE: SPHR), owner of Sphere arena in Las Vegas, plans another arena there.

Mideast nations are trying to build a tourism sector to diversify from oil. And it’s not just foreign travelers they seek.

“They are looking for opportunities for their citizens to enjoy travel without leaving the Middle East,” Peter Weishar, director of the Themed Experience graduate program at the University of Central Florida, told The Wall Street Journal. “So it makes perfect sense to put a park like Disney’s there.”

The wonders of Yas Island

The new Disneyland will be built on Yas Island, already home to Ferrari World, and the Warner Bros. park, World Abu Dhabi. The island also includes facilities for viewing sports and music, a golf course, a beach and a shopping mall.

Spectator sports are growing fast in the Mideast too, particularly Saudi Arabia, which has jumped into soccer, golf and tennis in a major way. The Saudi Pro League signed international soccer stars Cristiano Ronaldo, Karim Benzema, and Neymar. Ronaldo’s annual salary is reportedly more than $200 million. 

Saudi Arabia’s LIV golf league is a major challenger to the PGA tour. And the country hosts the year-end Women’s Tennis Association championship.

There are a lot of ways to progress from an emerging-market economy to a developed one. China did it largely through manufacturing. India has a buoyant tech sector. Obviously you can’t build an economy on entertainment alone, but it can certainly bring attention, visitors and perhaps money.