DUBAI (Reuters) – The government of Gulf Arab oil state Abu Dhabi will invest $1 billion in a media firm that will produce eight feature films a year in ventures with Hollywood, Bollywood and local producers, media reported this week.

Government-owned Abu Dhabi Media Company (ADMC), which owns a number of print and broadcast firms, has launched a company called “imagenation abu dhabi” with plans to make movies in the rich, desert state, according to reports in the United Arab Emirates paper The National and in the Financial Times.

The film venture is part of Abu Dhabi’s extensive efforts to broaden its economic base away from oil and gas extraction and into services, tourism and manufacturing.