The UAE’s strategic location and robust population within an 8-hour flight radius gives confidence in the success of the future Wynn Al Marjan Island project, says Wynn Resorts CEO Craig Billings.
Speaking in the group’s most recent earnings conference call, Billings provided an update on the project’s progress and spoke of the immense growth potential the group considers it holds.
“Construction is rapidly progressing on the project with work now approaching the 15th floor of the hotel,” Billings stated. “The building now stands just over 90 meters, which is already the tallest building in the Emirate.”
Billings also highlighted the strategic acquisition of the company’s 40 percent pro rata share of all 155 acres of Island Three, the island on which Wynn Al Marjan is situated.
“This transaction included the purchase of our 40 percent pro rata share of all 155 acres of Island Three, the island on which Wynn Al Marjan sits. As a result, our joint venture now owns not only the land under Wynn Al Marjan, but also 70-plus acres of land for potential future development on the Island.”
The CEO expressed his belief that the UAE represents the “most exciting new market for our industry in decades” and that the company’s “confidence in the demand and EBITDAR potential of Wynn Al Marjan continues to grow.”
Billings also mentioned the progress made on the debt financing for the project, stating, “We also made meaningful progress during the quarter on the debt financing for the project and expect that we will finalize that financing later in 2024.”
Billings also praised the issuing by the Global Center for Gaming Regulation and Administration (GCGRA) of its first lottery license, noting the establishment of the gaming regulator has provided “clarity” and “comfort” for investors.
The GCGRA recently launched its official website and issued its first federal lottery license, positioning the UAE as the first Gulf state to legalize gaming.
The GCGRA has provided comprehensive details on commercial licensing procedures, types of licenses, and the definition of commercial gaming, with its website also profiling key regulatory personnel and announcing the recipient of the UAE’s first federal lottery license.
In the group’s most recent conference call, Billings noted that the establishment of the GCGRA will provide clarity and incremental comfort for investors and financing sources.
“The members of that body are some of the luminaries of the industry and very, very experienced regulators. The establishment of the GCGRA hopefully creates incremental clarity for investors and financing sources”, he noted.
“It certainly has on the financing — on the bank financing side. And then, you’ll also note that they recently awarded a lottery license for the UAE, and I think that that hopefully again, gives folks comfort,” indicated the executive.
Although not knowing the specific time line for licensing, Billings commented there was “momentum” for the region’s gaming industry.
The Wynn Al Marjan Island development is poised to capitalize on the UAE’s strategic location and robust population within an eight-hour flight radius. Billings noted, “There is not a proper integrated resort on really that half of the planet, OK? So the closest is gonna be in Asia, right, Singapore or Macau.”
Billings underlined travelers in the region are accustomed to flying longer distances in order to holiday and to visit.
“You have 86 million airlifts coming into the Dubai Airport, we’re about 55 minutes via one of three six-lane highways from the Dubai airport”, he pointed out.
“In fact, because of traffic, it’s shorter to get to us than it is to get to the major areas within Dubai. And then, you have 10 million people locally, 9 million of whom are not Emarati and therefore, are able to play […] India, for example, was highlighted and that’s gonna be an important market. And there are other parts of Asia that are big markets for the UAE as well, so it’s an exciting project.”
