Abu Dhabi cultivates an island of museums to dazzle investors

Abu Dhabi is using its growing cluster of world-class museums to help resurrect tourism from its current ebb, attract investment and further reduce the UAE’s dependence on oil.

The strategy is centered on the capital city’s Saadiyat Island, where new architectural marvels include the soon-to-open Guggenheim Abu Dhabi, the Natural History Museum Abu Dhabi and the falcon-inspired Zayed National Museum.

They join Louvre Abu Dhabi, teamLab Phenomena and the monumental Abrahamic Family House – which contains a mosque, a church and a synagogue – in the enclave.

“Museums nowadays are no longer quiet rooms full of objects,” said Alia Al Hammadi, Acting Commercial Director of the Natural History Museum, which features “Stan,” one of the world’s most complete Tyrannosaurus rex skeletons and sold at a 2020 auction for $31.8 million. “They are active public spaces where science, culture, tourism and economy meet.”

Abu Dhabi expects the Saadiyat Cultural District to help increase tourism’s contribution to the non-oil economy to nearly $25 billion annually by 2030, while raising annual visitor numbers to 39 million from 24 million in 2023. The war with Iran has dented some of the momentum, with canceled hotel bookings, flight disruptions and major business conferences postponed.

Abu Dhabi’s model has been an effective economic tool by combining government-backed cultural spending with commercial development tied to hotels, restaurants, retail and real estate projects on Saadiyat Island, says Zaid Aboobaker, CEO of Dubai-based CompassPoint Consulting.

“We are seeing increasing investor interest in models that blend public funding with commercial revenue streams,” Aboobaker told The Circuit.

The Saadiyat district also includes institutions designed to support the broader cultural economy, including the Abu Dhabi campus of New York University, home to its influential Stern School of Business, and Berklee Abu Dhabi, affiliated with Boston’s Berklee College of Music.

Louvre Abu Dhabi has become one of the emirate’s biggest tourism attractions since opening in 2017, drawing more than 6 million visitors. Likewise, Guggenheim Abu Dhabi, a sprawling complex of metallic cones and geometric galleries designed by the late Frank Gehry, is expected to be an international blockbuster when it debuts later this year.

Almost 30 years ago, the Guggenheim Museum Bilbao helped transform the Spanish industrial city into a tourism destination after opening in 1997, notes Paul Scribner, CEO of General Holdings in Dubai and an art collector himself.

“A city becomes a multi-day stop when there is a reason to stay,” Scribner said in an interview.  “Bilbao is the precedent.”

Besides the museums on Saadiyat, Abu Dhabi is developing several other projects aimed at bolstering the emirate as a global leisure destination, including a Middle East version of Disneyland and a new Harry Potter park at Warner Bros. World. They join the Yas Marina Circuit, a Formula 1 racing track that hosts the annual Abu Dhabi Grand Prix and nearby Ferrari World. 

The Natural History Museum presents the history of life on Earth through what Al Hammadi describes as an Arabian lens, connecting its dinosaur skeletons through immersive exhibitions and scientific research programs with the Gulf’s flora and fauna. She expects the museum to generate business activity beyond ticket sales through education programs, retail, hospitality, conferences and events.

“When Abu Dhabi decides to build a natural history museum, it’s special,” she said. “We have long-term cultural assets.”