Wynn completes financing for Al Marjan Island resort in UAE – Casino
Wynn Resorts has recently secured financing for its ambitious Al Marjan Island resort project in the United Arab Emirates (UAE), finalizing a substantial $2.4 billion (£1.93 billion/€2.31 billion) construction loan from a consortium of global lenders.
Officially announced in January 2022, the Wynn Al Marjan Island is poised to become the first fully integrated resort in the UAE. While initial cost estimates for the development reached $3.90 billion, current projections have escalated to approximately $5.10 billion, underscoring the scale and significance of this investment in the region.
To facilitate this monumental investment, Wynn Resorts has strategically sought financial partnerships across various sectors. The final segment of this funding is structured as a secured term loan over a seven-year period.
The loan comprises a mix of US dollars and Arab Emirates Dirham, with a significant proportion of anticipated development expenses categorized in dirham. According to Wynn, this transaction marks the largest hospitality financing deal in the UAE’s history, indicating strong investor confidence in the burgeoning regional market.
Abu Dhabi Commercial Bank and Deutsche Bank played crucial roles as joint coordinators for the financing round, while First Abu Dhabi Bank, Emirates NBD Capital Limited, and The National Bank of Ras Al Khaimah contributed as part of a broader banking syndicate, which also included Sumitomo Mitsui Banking Corporation.
Importantly, First Abu Dhabi Bank has been designated as both the agent and security agent on behalf of the lenders.
Anticipation of Project Milestones
In conjunction with the funding announcement on February 6, Wynn Resorts provided a progress update on construction activities. Notably, 64% of the structural concrete for the main resort tower has been completed, extending up to the 34th floor—an impressive increase from 50% just a few months earlier.
The construction team is currently achieving rapid progress, completing one floor each week with an ambitious target to finalize the structure by December. Over the past 100 days, the height of the resort tower has increased by approximately 140 feet, reflecting a robust commitment to project timelines.
Once finished, Wynn Al Marjan Island will boast 1,542 luxurious rooms and suites, with 80% of these units already nearing completion. Additionally, over 20% of the exterior façade window glazing is completed, and fit-outs are actively underway in more than 1,120 rooms.
The low-rise section of the property exhibits promising advancements as well, with both concrete and steel structures currently standing at 70% completion. Alongside external and interior finishes, installation of elevators and escalators throughout the resort is progressing steadily.
A plethora of on-site amenities are planned for Wynn Al Marjan Island, including upscale restaurants, lounges, bars, a nightclub, a vibrant beach club, an expansive shopping promenade, a theatre, and versatile conference and event spaces, all designed to elevate the guest experience.
Exploring the Competitive Landscape in the UAE
Wynn Resorts currently stands as the sole operator to have successfully obtained a casino license in the UAE, issued by the General Commercial Gaming Regulatory Authority (GCGRA) in October of the prior year, marking a historic moment for the region.
So far, the only additional licenses granted include one to The Game for the operation of the UAE’s national lottery and various supplier licenses for gaming machines and technology providers.
Furthermore, MGM Resorts has expressed strong interest in establishing a presence in the UAE. CEO Bill Hornbuckle disclosed during a Skift event in September plans for a resort in Abu Dhabi, with a license application currently under consideration.
However, GCGRA Chairman Jim Murren cited the importance of a deliberate approach in processing resort license applications, emphasizing a focus on operators who have already received licensure.
This evolving landscape highlights the significant growth potential within the UAE’s gaming and hospitality sectors, showcasing Wynn Resorts’ strategic positioning as a pioneer in this developing market.
