Wynn Resorts Plans Bigger UAE Development With $5.1 Billion Spend

Wynn Resorts secured the region’s first-ever commercial gaming license earlier this week and paving the way for the Middle East’s inaugural integrated resort, signalling a new era of diversified leisure and hospitality experiences for visitors and residents along with creating a casino goldrush in the region.

Wynn’s ambitious $5 billion gaming plan for the UAE promises to redefine the country’s tourism offerings, catering to the discerning tastes of international high-net-worth individuals, affluent domestic travelers, and the rapidly growing influx of tourists flocking to the Emirates. With construction already underway on the Wynn Al-Marjan Island property in Ras Al Khaimah.

Wynn’s investor presentation has shed light on the colossal scale of the opportunity awaiting in the UAE. The operator projects the country’s gaming market to be worth a staggering $3 billion to $5 billion, dwarfing the existing integrated resort offerings in the region. This ambitious forecast underscores the pent-up demand for world-class gaming and entertainment experiences within the Emirates.

For its flagship Wynn Al-Marjan Island property, the company envisions a robust revenue stream, projecting gross gaming revenue (GGR) in the range of $1 billion to $1.67 billion, with a base expectation of $1.33 billion. The figure is further bolstered by Wynn’s expectation of a blended tax rate of 10% to 12% of GGR, placing the UAE’s gaming market on par with the established integrated resort hub of Singapore.

Wynn’s strategic positioning for the UAE market is underpinned by a comprehensive understanding of its target customer segments. At the core of the operator’s revenue projections is the ‘international VVIP’ segment, comprising ultra-high-net-worth individuals from around the globe. This elite group is expected to contribute a substantial 37% of the property’s total GGR.

Complementing the international VVIP segment is the influx of international tourists, which Wynn anticipates will account for 29% of the $1.33 billion GGR base. With over 100,000 existing gaming and non-gaming customers in its global database, the operator is well-positioned to leverage its extensive customer relationships to drive visitation to the Wynn Al-Marjan Island resort.

Domestic visitors from the UAE’ population of 9 million non-Emirati residents are also expected to contribute a significant 34% of the property’s GGR. The Emirates’ status as a magnet for high-net-worth individuals, with over 6,700 millionaires expected to relocate to the country in 2024 alone.

The strategic location of the Wynn Al-Marjan Island property, situated just 20 minutes from Ras Al Khaimah International Airport and 50 minutes from Dubai International Airport, positions the resort as a prime destination for both domestic and international visitors. The emirate of Ras Al Khaimah is poised for exponential tourism growth, with overnight visitation expected to surge from 4.3 million in 2024 to 9.6 million by 2030, according to the RAK Center for Statistics & Studies.

Wynn’s resort offering, which includes a 1,542-room hotel with 297 suites, 6 townhouses, and 22 villas, as well as a sprawling 225,000-square-foot gaming floor.

Wynn’s move in securing the UAE’s first commercial gaming license has not gone unnoticed by MGM Resorts, which has already applied for a license in Abu Dhabi.

While the General Commercial Gaming Regulatory Authority (GCGRA) has not confirmed any other license applicants, the impending arrival of competing properties is a certainty. Regulations within the UAE limit each emirate to a single casino, setting the stage for a highly competitive landscape as operators vie for a share of the lucrative $3 billion to $5 billion gaming market.

Wynn’s Wynn Al-Marjan Island property is on track to open its doors in 2027, with the tower set to top out in the fourth quarter of that year. The operator has outlined a comprehensive timeline, with interiors, furniture, fixtures, and equipment to be installed over the next year, and pre-opening scheduled for the first quarter of 2027.

To fund this ambitious project, Wynn has committed an equity contribution of $1.08 billion, representing a 40% stake in the venture. The remaining $2.4 billion in debt financing is already oversubscribed, with strong demand from both local and international lenders.

The introduction of commercial gaming in the UAE presents unique regulatory and social challenges that Wynn must navigate with utmost care and diligence. As the first licensee in the region, the operator will play a pivotal role in shaping the regulatory framework and setting the tone for responsible gaming practices.

The Wynn Al-Marjan Island project represents a significant step towards diversifying the UAE’s economic landscape beyond its traditional oil and gas industries. The influx of investment, job creation, and the development of a thriving integrated resort ecosystem will contribute to the country’s broader economic diversification efforts.

By attracting a diverse array of international visitors, the Wynn property will drive increased tourism spending, bolster the hospitality and retail sectors, and generate substantial tax revenues for the government.

Wynn’s entry into the UAE market has been facilitated by strategic partnerships and collaborations with local entities. The company’s successful bid for the UAE’s first commercial gaming license was made possible through its close working relationship with the General Commercial Gaming Regulatory Authority (GCGRA), the governing body responsible for overseeing and regulating the country’s nascent gaming industry.

Furthermore, Wynn’s ability to secure a $2.4 billion debt financing package, which is already oversubscribed, speaks to the operator’s strong ties with both local and international lenders. These partnerships and collaborations will be crucial in navigating the complexities of the UAE’s regulatory landscape and ensuring the successful execution of the Wynn Al-Marjan Island project.