That film "undoubtedly drew the world's attention to Dubai, leading to an increase in film productions travelling to shoot in Dubai from China, India and Europe", says Jamal al-Sharif, head of the Dubai Film and TV Commission. That film alone is estimated to have contributed US$48.5 million ($57 million) to Dubai's coffers.
Now Abu Dhabi hopes the Star Wars franchise will give it a similar boost. The country has a stable political climate - Tunisia, the site of previous Star Wars sagas, still benefits from tourists visiting the now-crumbling structures of Tatooine, but its tourism revenue has plummeted after political unrest.
The head of twofour54, Noura al-Kaabi, hails Star Wars coming to Abu Dhabi as a turning point for the capital of the UAE's film industry.
"This shows that we are emerging as the region's leading media and entertainment hub," she said.
The announcement proves aggressive marketing by the Abu Dhabi government is paying off.
As well as promising "year-round sunshine and blue skies", the emirate introduced a 30 per cent cash rebate on production spend last September, as well as offering no sales tax.
Unlike its neighbour Dubai, it also doesn't charge for obtaining filming permits.
Although paying lip service to cooperation, and jointly manning a pavilion at the recent Cannes Film Festival, it seems the two emirates are competing for the affections of Hollywood and Bollywood.
Dubai has long been favoured by Indian cinema. But Abu Dhabi is gaining ground. Its seaside corniche was closed off for a car chase this month as part of the filming of its first Bollywood feature, Bang Bang.
Films are but the latest field the UAE is tackling in its search for cultural dominance. It has been making a push on to the global art scene, with auction houses such as Christie's setting up in Dubai, and Dubai's art fair becoming a top event.
Abu Dhabi has started its own art fair, though it is yet to properly compete with the more established Dubai version.
"The two cities have their own character," says Gulf Art Guide creator Neil van der Linden. "Abu Dhabi is organised in a top-down manner, while in Dubai culture is created more organically from the bottom up."
Star architects from around the world are clamouring to build in the cities. Iraqi-British architect Zaha Hadid has projects being built in both. She revealed plans in February for her first Dubai project, the Opus Dubai Hotel.
Hadid is also building the Abu Dhabi Performing Arts Centre, which will be housed on Saadiyat Island.
Saadiyat will also have the largest Guggenheim Museum in the world and the Richard Rogers-designed Zayed National Museum. The Louvre Abu Dhabi will open next year.
Yet with big names comes scrutiny. Western institutions such as the Guggenheim have been facing increasing criticism over the region's low living standards for overseas construction workers. This week, New York University had to issue a grovelling apology to workers on its Abu Dhabi campus after the New York Times found they were sleeping 12 to a room and were underpaid.
Although Dubai is clearly in the lead, in the long term far richer Abu Dhabi might emerge victorious.
"Abu Dhabi is looking at Dubai knowing that they have a longer breath because their money will stretch a lot further," says van derLinden.
- Independent
