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While rising production costs hit big studios in the US, the Gulf is witnessing a new wave of investment in the sector with Warner Bros set to start production in Abu Dhabi and the new Dubai Studio City attracting an increasing number of occupiers.

Dubai and neighboring Abu Dhabi expect a wave of TV production investment as rising costs in the US encourage both TV channels and studios to seek lower-cost locations.

A number of top Hollywood producers have already found in Dubai a venue to shoot their blockbusters. Geopolitical thriller Syriana, produced by George Clooney, utilised the exterior of Dubai's One and Only Royal Mirage hotel for a number of scenes. Last September, director Peter Berg shot Universal Pictures' fictional thriller The Kingdom in Abu Dhabi while the scene's production was facilitated by Filmworks, a Dubai-based company.

Dubai Studio City has attracted 40 companies since being established in 2005 with the aim of creating a community of film production and broadcast companies.

Last year 285 TV commercials were produced within the development as well as 132 stills and 150 TV programmes.

Warner Bros also plans to develop production studios in neighboring Abu Dhabi in a partnership with local real estate company Aldar and the Abu Dhabi Media Company.

The studios will form part of a massive theme-park based development. Under the deal Warner Bros will produce "broad-appeal" films with the group retaining worldwide distribution rights and options.

"This is a great opportunity for us to expand our local language film production business to a new region, developing talent both in front of and behind the camera," says Richard Fox, executive vice president, International, Warner Bros.

Separate from this arrangement, Warner Bros will work with Abu Dhabi Media Company to develop and produce a slate of Arabic-language films for local and pan-Arabic distribution.

The planned investment comes as Warner Bros cuts production jobs in the US, as the cost of making movies in the country rises by as much as 10% annually.

International broadcasters including CNN and BBC are also expanding their regional bases in Dubai.

"There are definitely advantages to producing in Dubai. The costs would definitely be lower than in the States," says Ramia Farrage, a producer and news presenter at Dubai One TV.

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