Dubai firm pays $7.5M for cancelling Six Flags park plans

Finance and Business

FILE – In this Sunday, Dec. 18, 2016 file photo, Dubai Parks & Resorts celebrates it’s opening ceremony with fireworks in Dubai, United Arab Emirates. The Dubai firm DXB Entertainments said Tuesday July 3, 2019, it will pay $7.5 million to Six Flags after abandoning plans to build a version of the U.S. amusement park in the emirates amid a slowdown in the economy. (AP Photo/Kamran Jebreili, File)

DUBAI, United Arab Emirates (AP) — A Dubai firm said Tuesday it will pay $7.5 million to Six Flags after abandoning plans to build a version of the U.S. amusement park in the United Arab Emirates amid a slowdown in the economy.

DXB Entertainments, which runs Dubai Parks & Resorts, said it agreed with Texas-based Six Flags Entertainment Corp. to pay the amount as “a right of first refusal.”

In February, DXB Entertainments announced it was cancelling plans to build the $454 million Six Flags, citing financing constraints. The company, which owns other theme parks in Dubai, posted a first quarter net loss of $59 million and visits were down 11% over the same period.

DXB Entertainments is majority-owned by Meraas Holding, a development company owned by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.