Abu Dhabi is setting up an animation, visual effects and motion capture studio as part of its drive to improve the film, TV and media production industry in the Middle East Digital production company Digital Domain Media Group (DDMG) and twofour54, the Abu Dhabi government-backed media and entertainment hub, announced that they are collaborating on the project. DDMG, which has worked on movies such as Transformers and Tron 2, will establish an animation, visual effects and motion capture studio and Digital Domain Institute media school in Abu Dhabi, a statement said. The collaboration is designed to support the emirate\'s goal to become the region\'s centre of excellence for media content creation, the companies said in an announcement made at the Cannes Film Festival. DDMG will begin production of visual effects and animation at studios in early 2013, with plans to recruit and hire staff immediately from local and international talent pools. Over time, the studio will employ upwards of 500 people, the company said, adding that it will develop a purpose-built 150,000 sq ft entertainment production complex, which  is expected to be operational by the end of 2015. The new studio will create animated feature films, produce visual and 3D effects, engage in the production of original Middle Eastern-branded entertainment for global audiences and contribute to international productions. It will become part of Digital Domain\'s global feature film VFX and animation pipeline, connected to its studios in Los Angeles, Vancouver, San Francisco, London, Florida and Mumbai. This marks the first time a major, global studio has established a presence in the region. \"We are incredibly excited to join twofour54 in building a strong foundation for the filmmaking industry in Abu Dhabi,\" said DDMG CEO and chairman John Textor. \"There is tremendous opportunity to produce original entertainment content for Middle Eastern audiences worldwide, and to bring Hollywood work and our own original productions here as well. \"We\'re looking forward to grooming up-and-coming Arab filmmakers at a time of such great awakening in this part of the world.\" Noura Al Kaabi, CEO of twofour54, added: \"Digital Domain represents the next great leap forward for twofour54 and Abu Dhabi - a strong move into digital production and the development of locally created feature films and TV content. \"The establishment of DDMG in Abu Dhabi is a significant event in the evolution of the media industry in the Middle East. It will provide incredible opportunities for young Arabs to develop skills and careers in an area of the media industry that has simply never existed before in the region.\" An award-winning digital production company founded in 1993, DDMG is a leading provider of digital visual effects and has contributed to more than 90 major motion pictures. Twofour54 is home to more than 160 local, regional and international media companies including CNN, BBC, Ubisoft, Fox Intl Channels, Cartoon Network, Financial Times and Charisma. Twofour54 said on Sunday it is set to launch the region\'s first incentive scheme to lure international film makers to the UAE capital. The scheme comes as it looks to accelerate Abu Dhabi as the first choice for movie producers needing location, production and post-production services. The incentive, in the form of a rebate of up to 30 percent of spend in Abu Dhabi, will be available for feature films, TV, documentary, advertising and music video production, it added.