Wynn Resorts has increased the budget for its Wynn Al Marjan Island project by 31%, bringing the total investment to $5.1bn.
Wynn Resorts has increased the budget for its Wynn Al Marjan Island project by 31%, bringing the total investment to $5.1bn, up from the original estimate of $3.9bn.
The luxury integrated resort, located on Al Marjan Island in Ras Al Khaimah, UAE, is scheduled to open in 2027.
The Las Vegas-based company shared the update in an investor presentation yesterday (8 October), shortly after receiving the UAE’s first-ever commercial gaming facility operator’s licence from the General Commercial Gaming Regulatory Authority (GCGRA).
Wynn is partnering with RAK Hospitality Holding LLC and Al Marjan Island LLC for the project, holding a 40% equity stake in the joint venture.
The revised budget includes land, fees, and capitalised interest, with direct construction costs accounting for $4.55bn.
Wynn will fund much of the project through $2.4bn of debt, which has already seen strong demand from both local and international investors.
UAE gaming market potential
Wynn estimates that the UAE’s gaming market could be worth between $3bn and $5bn.
For the Wynn Al Marjan Island property alone, the company expects gross gaming revenue (GGR) to range from $1bn to $1.67bn, with a base projection of $1.33bn.
The resort is also expected to generate substantial non-gaming revenue, leveraging the growing demand for luxury experiences in the region.
Adjusted property EBITDA is forecast to fall between $390m and $570m, with a base estimate of $465m.
Wynn anticipates a return on invested capital in the range of 9.8% to 15.7%, it said, driven by its premium brand and market position.
The company added that its projections assume the UAE will eventually host two other competitive integrated resorts, with Wynn capturing 33% of the market share.
However, current regulations limit each Emirate to a single casino.
Targeting ultra-high-net-worth individuals
Wynn’s strategy for maximising revenue hinges on attracting ultra-high-net-worth international customers, or “international VVIPs,” who are projected to account for 37% of the resort’s GGR.
Wynn’s global database of over 100,000 high-end clients supports this, and the company expects these patrons to spend three times more per day at Wynn Al Marjan Island than at its flagship Las Vegas property.
Additionally, Wynn anticipates that international tourism will contribute 29% of its GGR, with the resort’s location — 20 minutes from Ras Al Khaimah International Airport and 50 minutes from Dubai International Airport — positioning it to attract visitors from across the globe.
Domestic visitors are expected to account for 34% of Wynn Al Marjan Island’s GGR, tapping into the UAE’s sizeable population of 9 million non-Emirati residents.
The country’s growing wealth is a major draw for Wynn, with the firm noting that 6,700 millionaires are expected to relocate to the UAE in 2024 alone.
Earlier this year, Wynn revealed that it has already bought additional land for future development on the island.