Abu Dhabi to splash $1B on films, digital media

Abu Dhabi Media Co, a state-owned firm, said on Wednesday it will invest more than US$1 billion in feature film and digital media production over the next five years.

Through a new division dubbed Imagenation Abu Dhabi, the company plans to establish partnerships with high-profile producers in the US and elsewhere, including the Middle East. Abu Dhabi Media said the division, which aims to produce eight films per year, is part of its plan to become ‘a worldwide leader’ in media production.

Abu Dhabi has established itself as a major player in the global economy, as evidenced through recent activity in the energy, real estate and transportation sectors. Mohamed Khalaf al-Mazrouei, chairman of Abu Dhabi Media and its new subsidiary, said in a statement:  “Media is no different.”

The emirate has in recent years become increasingly creative with its investments. State investment arm Mubadala Development Co. recently set up joint ventures with General Electric Co. and energy service provider Petrofac Ltd., and a group of business interests led by Dr Sulaiman Al Fahim surprised the sports world this week with its takeover of English football team Manchester City.

The emirate has also taken large minority stakes in high-profile financial companies such as Citigroup Inc. and private equity firm Carlyle Group.

Earlier this year, Abu Dhabi Media launched a newspaper, The National, and it also publishes magazines, and operates satellite television and radio stations.

Abu Dhabi Media and the film subsidiary are headed by Edward Borgerding, a former Walt Disney International executive hired in March. He said the new division aims to make award-winning films which are commercially successful and appeal to audiences across the world.

The company already has some experience in the film business. Just under a year ago, it announced a deal with Time Warner Inc’s Warner Brothers Entertainment and an Abu Dhabi-based property developer to build a theme park, hotel and cinemas, and to finance the production of feature-length films and video games.

Abu Dhabi launched its first film festival complete with its own prizes, the Black Pearl Awards, last year. The event, the Middle East International Film Festival, competes for attention with the Dubai International Film Festival, which will mark its fifth year in December.