July 2, 2019 / 7:24 AM / 5 months ago

Six Flags gets $7.5 mln payout after Dubai partner ends project

DUBAI, July 2 (Reuters) - Six Flags will receive $7.5 million from the U.S. company's Dubai partner DXB Entertainments, which has ended plans to build a Six Flags theme park.

DXB owns Dubai Parks and Resorts, a group of theme parks in the south of Dubai including the Hollywood-inspired Motiongate and a Lego-themed water park.

It said in February plans for Six Flags Dubai would not go ahead because financing was no longer available.

DXB Entertainments said in a statement on Tuesday it will pay $7.5 million to Six Flags as part of a settlement agreement with both sides agreeing there would be no further claims.

The Dubai theme park company said it will retain exclusive right of first refusal for use of 'Six Flags' intellectual property rights in the United Arab Emirates for five years.

Numerous theme parks and other entertainment venues have opened in the UAE in recent years, although some have struggled due to low visitor numbers and high costs.

DXB Entertainments first quarter loss widened to 215.7 million dirhams ($58.73 million), it reported in May.

In neighbouring Saudi Arabia, Six Flags is involved in a park in a project being built on a 334 square km (8,400 acre) site, making it 2-1/2 times the size of Disney World. ($1 = 3.6728 UAE dirham) (Reporting by Alexander Cornwell; Editing by Alexander Smith)

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