MENA’s First Integrated Resort Created an Investment Boom

The construction of the first fully integrated resort for luxury hospitality and licensed money gaming in the Middle East and North Africa (MENA) region is advancing rapidly. However, it will take at least one more year for the central tower to reach its full height of 300 meters. That’s also the time it will take for the resort to open to the public.

Nevertheless, the $3.9 billion (₹32,710 crore) project has already positively changed the investment landscape in the Emirate of Ras Al Khaimah.

The Core Project Represents a Nearly Third of Ras Al Khaimah’s GDP

According to Fitch Ratings Inc., the Wynn Al Marjan Island project in Ras Al Khaimah, UAE, is valued at $3.9 billion. Wynn Resorts LLC holds 40% equity in this project. This value represented around 32% of the Emirate’s Gross Domestic Product (GDP) in 2022.

The scaled-up investment will have a profound impact on RAK’s economy. And Fitch predicts in a note that this impact will occur early. Even before the anticipated tourist footfalls start coming in.

The ongoing construction phase will boost real GDP growth, which is expected to increase by 1% in 2023. In 2024, it will rise by 2%. It will increase a further 2% in 2025. This will contribute to a “robust” growth of the Emirate’s economy. The projected growth is 6.2% in 2024 and 5.0% in 2025.

“In addition to providing significant short-term growth momentum, we also expect the project to serve as a catalyst to attract further investment that will help increase economic resilience over the longer term, and to speed up the income convergence with peers,” Fitch said.

Based on its medium-term growth forecasts, the agency expects “improved credit metrics.” It also considers RAK’s “record of resilience to external shocks.” Therefore, the agency upgraded Ras Al Khaimah’s long-term foreign-currency issuer default rating from “A” to “A+” with a “stable” outlook.

Modern Gambling Regulations In Line with the Design

Besides selecting a partner capable of delivering the highest achievements in casino, entertainment, and hospitality design, the authorities in Ras Al Khaimah and UAE have taken due care. They aim to back the whole plan with a robust regulatory and taxation framework. A framework that can match the modern approach of the design efforts for their ambitious Al Marjan project.

In July 2024, the United Arab Emirates became the first nation in the Persian Gulf to open to commercial gaming. The previously password-protected website of the UAE General Commercial Gaming Regulatory Authority (GCGRA) was launched publicly. Casino and gambling rules were published, and the first lottery license in the state was issued.

According to the GCGRA, the term “commercial gaming” means “any game of chance, or combination of chance and skill, where an amount of money, in cash or cash equivalents, is wagered – i.e. placed as a bet – for the purpose of winning a sum of money or other valuable items.”

The authority will oversee responsible gambling in the state. Besides lottery, it will regulate internet and land-based gaming. This includes “bingo, casino games (slots, roulette, blackjack, baccarat, craps, and poker), eSports, fantasy games, peer-to-peer games, skill-based games, sports, and more.” The authority will also regulate sports wagering.

“We were delighted with the public announcement of the GCGRA, the federal regulatory body for gaming. The members of that body are some of the luminaries of the industry and very, very experienced regulators,” Craig Billings commented.

“The establishment of the GCGRA creates incremental clarity for investors and financing sources. It certainly has on the financing — on the bank financing side…And then, you’ll also note that they recently awarded a lottery licence for the UAE, and I think that that hopefully again, gives folks comfort,” he highlighted.

“I assume that they will be moving forward to the next step in our licensing. I don’t have a specific timeline for you, but you can see all the momentum that’s happening there,” Billings said on the topic of Wynn’s expected gaming license.

The Islands Remained Empty for a Decade; Now They Have Sold Out

The four artificial islands off Ras Al Khaimah’s 40-mile coastline stayed nearly empty for almost a decade. Developers created huge plans to turn the area into a “Mini Ibiza” or a football-themed resort in partnership with Real Madrid. However, they later scrapped these plans.

Now, just two years after Wynn Resorts announced their $3.9 billion project, the islands are bustling with investment activity. Real estate prices have soared around 170%. This surge has secured “spectacular” returns for those who bought early.

Reportedly, all of the land has already been sold. More than 20 developers are working on projects there. Some already in their construction phase. The existing six hotels offer approximately 3,000 rooms and 3,000 homes. The number is expected to reach 12,000 rooms and 12,000 homes within six to ten years. Put in relation, it would account for around 10% of Las Vegas’ capacity of 155,000 rooms.

The Emirate, located within a four-hour flight from nearly one-third of the global population, is planning to build a new terminal at its international airport. This aims to triple footfalls from 7 lakh passengers now to 20 lakh annually by 2027.

“The Wynn casino and resort has been a game changer for Marjan,” said Khalid Bin Kalban. He is the CEO of Dubai Investments PJSC, one of the developers investing in the islands. “Everyone is there in anticipation that RAK’s tourism will grow rapidly with the casino. It’s about the gaming, the shows, the hotels. You’re essentially bringing a mini-Vegas to Ras Al Khaimah.”

Gambling Can Give the Spark, A Lot More Is Needed to Boost an Economy

As global experience has shown, opening a licensed casino can help boost tourism and the economy in general, but a lot more is needed for a profound impact, and the creators of the Wynn Al Marjan Island are aware of this.

“There’s a plethora of different things that are required,” explained Philip Barnes, CEO of Abu Dhabi-based Rotana Hotels and Resorts.

“That’s why I think when people are looking at tourism or hotels, you’ve got to look at big picture. Where do you want to be and where do you have the infrastructure? It’s great to get into a destination that is developing because it allows you to get a foothold. But you’ve got to be cognizant of the development,” Barnes stressed.

“Las Vegas, contrary to what most people think, is not about gambling, it’s about conventions. The Sphere, this new concert arena that they’ve opened, drives traffic into that city because they bring big names in with big impact on the economy. It’s not just about the people coming in for the concert, it’s the hotels, it’s the restaurants, it’s the retail. When you’re looking at tourism as a whole you have to understand the whole picture.”

“Marjan Island is different from the daily hustle and bustle of being in downtown Dubai or Abu Dhabi,” said Al Abdouli, CEO of Marjan LLC. “It’s a getaway. Many of the visitors come from other parts of the UAE for staycations. There are mountainous areas for hiking, biking, triathlons and beaches. But the Wynn resort will be a catalyst like no other in the UAE.”