Dubai will not have its F1 theme park
Faced with competition from Ferrari World and the economic crisis, Dubai has definitively abandoned the construction of a theme park centered around F1.
The project was announced with great fanfare at the Chinese Grand Prix…2005. It was supposed to be one of the emblems of the Motor City that the Emirate wanted to build. But it has been delayed since 2009 and the economic crisis, which has heavily hit the economic capital of the United Arab Emirates.
Today, the project is definitely halted since the local leaders now wish to bring a more educational touch to the amusement park they want to build in the same place, as explained to Arabian Business by Ahmed Khalaf Obaid Bin Touq Al Marri, the director of Union Properties, which manages the project: « Currently, we are focusing more on children, and our idea is to blend entertainment and education in the amusement park by bringing something new to the amusement parks. Not only will tourists come, but they will also learn something. »
It must be said that Ferrari World in Abu Dhabi has been fulfilling the region’s need for Formula 1-related thrills for nearly three years, and a new theme park on the same theme just a few hours’ drive away would have risked harming both projects. Since Abu Dhabi, with funds from its oil wealth, certainly does not intend to help its neighbor but nonetheless competitor to harm its own interests.
This is explained in the local newspaper The National by Ian Albert, the regional director of Colliers International Middle East, who is involved in many of Dubai’s tourist developments: « It’s a shame the theme park didn’t come to fruition. It would have added to the variety and depth of Dubai’s offerings. But Abu Dhabi has replaced the demand in the United Arab Emirates for a motorsports-themed park with Ferrari World. The Dubai Autodrome track is still there and usable and will be beneficial for the city when the tourist market improves, even if it’s a shame it’s not utilized to its full potential. »
Nevertheless, this case is not a lost cause for everyone. Indeed, to have the right to name its potential amusement park F1-X, Union Properties had to sign an agreement with Bernie Ecclestone’s FOM. Union Properties thus declared to the Dubai Stock Exchange: « Over the year, the board of directors reviewed the value carried by this intangible asset. In their opinion, as the amusement park around Formula One has not been launched, the company decided to cancel the agreement between the two companies, which means that the non-refundable fees have been completely paid. »
The total of these non-refundable fees still reaches ten million dollars, which directly feeds the profits of the FOM but does not count in the calculation of team bonuses since they are outside the strict calendar of the sport.
With the participation of www.Racingbusiness.fr
