Abu Dhabi’s UASG invests $200 million in special effects company
The 44-year-old family conglomerate seeks to bankroll Hollywood blockbusters with DNEG and secure its own corporate future
American actor Dave Bautista greets fans during the Middle East premiere of "Dune: Part Two” at VOX Cinemas at Abu Dhabi’s Galleria Mall. (Getty Images)
A 44-year-old Abu Dhabi family conglomerate is looking to bankroll Hollywood blockbusters to secure its future fortunes as the UAE capital establishes itself as a hub for content creation and big-budget productions.
United Al Saqer Group, founded by members of the Abu Dhabi royal family, has invested $200 million in The DNEG Group, valuing the British-Indian firm at more than $2 billion.
DNEG – known for special effects work on films like “Dune,” Oppenheimer” and “Interstellar” – said the cash injection will be used to open a new office and “visual experience hub” in Abu Dhabi, “with plans to develop a world-class ecosystem in the Middle East for content production, storage and distribution.”
The funds will also help scale its technology division, Brahma, which is developing an AI-powered, photo-real CGI creator.
The investment is the latest example of the Gulf’s evolution as a source of capital. In recent years, investment activity, largely led by the sovereign wealth funds, has become more active and strategic while at the same time coming with strings attached to bring firms with Gulf backing to do business locally here in the region – helping to reach targets on job creation and economic diversification away from oil.
United Al Saqer has for decades poured money into traditional sectors that propelled the wave of economic development after oil was first discovered like construction, restaurants and car sales.
The group’s subsidiaries build mosques, hospitals and grocery stores across the region. They also sell the majority of commercial vehicles on the UAE’s roads and most of the BMWs purchased in Abu Dhabi.
The group’s foray into modern filmmaking is in step with another recent move: a research endowment it made to Abu Dhabi’s artificial intelligence university late last year to develop AI applications in digital health.