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According to the file on the film in the MPAA/PCA Collection at the AMPAS Library, the Danziger Brothers, who were based in both New York and London, organized a company, Fritzi Pictures, Inc., specifically for this film. The file also indicates that the film was originally intended for Paramount release. Although Babes in Bagdad was released in color, the print viewed was in black-and-white. In a December 9, 1951 New York Times news item, co-producer Edward J. Danziger stated that the film would be shot in Cinefotocolor, a new, Spanish color process utilizing a chemical dye process and a special camera but ordinary black-and-white negative and positive film. The Hollywood Reporter review of the film described the process as "frequently hazy and murky in various shades of blue, tan and red." Advertisements for the film's U.S. release listed the color as "Exotic Color." The music composer was usually credited as Jess Garca Leoz. The order of the opening and ending cast credits differ. The New York Times article stated that some scenes were to be shot in Tunis, but it has not been determined if location shooting actually took place there.
Muchachas de Bagdad, a Spanish-language version of this film was made simultaneously and included variations on the original screenplay. The principal actors, Paulette Goddard, Gypsy Rose Lee, Richard Ney and John Boles were dubbed, while supporting roles were played by Spanish-speaking actors: "Sharkan" by Rafael Durn, "Zelika" by Julia Lajos, "Omar" by Antonio Riquelme and "Officer" by Luis Induni. The credits on the Spanish version list Jernimo Mihura and Edgar G. Ulmer as co-directors, Jack Cox and Georges Perinal as directors of photography, Jos Luis Prez de Rozas as camera operator and Marina Norek as choreographer. The pressbook for the Spanish version also credits Georges Perinal as director of photography of the English version.