The credit crunch is wrecking Dubai's plans to become a major Hollywood player. With the global recession in full swing, funding for new projects is drying up as fast as the Sahara desert. Variety reports:
Dubai plans to roll out a film-incentive program are on hold, key local execs involved in the media push have been ousted, and even Dubailand, the giant theme park complex in which a handful of Hollywood studios are involved, seems certain to be scaled back.
While Hollywood's involvement in ventures, including Dubailand and planned film partnerships, look likely to proceed, there is uncertainty about how and when those plans will come to fruition.
Still on course are Abu Dhabi's Imagenation and Qatar's Al noor's film funds -- $1 billion and $200 million, respectively -- to finance projects for the international marketplace, and Rupert Murdoch's plans for News Corp. to acquire a 10% stake in Saudi billionaire Prince Waleed bin Talal's Rotana media conglom.
But there are new signs that the brutal belt-tightening which has affected the global economy is catching up to these oil-rich emirates. The evolving financial problems were the talk of the Dubai Intl. Film Fest, which bowed Dec 9 and runs through Dec. 16.
"I think Hollywood has already lost confidence in Dubai," says one local producer. "They've seen Abu Dhabi step up to the plate and put up money. They've seen what's happened with both 'Body of Lies' and 'Sex and the City 2' not being allowed to film in Dubai." The former was nixed due to political content, the latter due to its sexual content. "The authorities here need to realize that introducing some incentives would actually be good for Dubai's recovery."
Dubai World is falling apart and the city is riddled with expensive building projects that lack the funding to be finished. Foreigners are leaving in droves as jobs disappear. Dubai will have to pull back on some of its Hollywood dreams.
