UAE: Wynn Al Marjan gaming resort will be ‘must-see’ tourist destination, says CEO

In early October, Wynn Resorts became the first recipient to get a commercial gaming licence in the UAE

Waheed Abbas

Published: Tue 5 Nov 2024, 11:33 AM

Last updated: Tue 5 Nov 2024, 6:13 PM

The $3.9-billion (Dh14.3 billion) Wynn Al Marjan integrated gaming resort will be a “must see” tourist destination in the UAE when it opens in 2027, said Craig Billings, CEO of Wynn Resorts, Limited.

“We are continuing to invest in growing the business with construction on Wynn Al Marjan Island rapidly advancing. We are confident the resort will be a 'must see' tourism destination in the UAE and expect it will support strong long-term free cash flow growth,” Billings said during the third-quarter financial results.

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“At the same time, we continue to increase the return of capital to shareholders through our recurring dividend and opportunistic share repurchases. To that end, we are pleased to announce that the board has increased our share repurchase authorisation to $1 billion. We are excited about the outlook for the company, and we will continue to focus on driving long-term returns for shareholders,” he said.

As reported by Khaleej Times earlier, Max Tappeiner, the newly appointed president of Wynn Resort Al Marjan, said the project is set to open in the first quarter of 2027. He added that Al Marjan could become the fourth major gaming market in the world.

In early October, Wynn Resorts became the first recipient to get a commercial gaming licence in the UAE, after the General Commercial Gaming Regulatory Authority (GCGRA) issued a Commercial Gaming Facility Operator licence to the entity developing the Wynn Al Marjan Island resort in Ras Al Khaimah.

Ras Al Khaimah is aiming to be a major tourist destination, increasing the number of hotel keys in order to achieve its target of 3 million tourists by 2030.

The US-based company announced operating revenues of $1.69 billion for the third quarter of 2024, an increase of $21.4 million from $1.67 billion for the third quarter of 2023. Net loss was $32.1 million for the third quarter of 2024, compared to net loss of $116.7 million for the third quarter of 2023. Diluted net loss per share was $0.29 for the third quarter of 2024, compared to diluted net loss per share of $1.03 for the third quarter of 2023.

During the third quarter of 2024, the Las Vegas-based company contributed $18.2 million (Dh66.8 million) of cash into a 40-per-cent-owned joint venture that is constructing the Wynn Al Marjan Island development in Ras Al Khaimah. This brings its to-date cash contributions to the project to $532.6 million (Dh1.954 billion).

“The cash contributed in the quarter was used primarily to fund our pro rata portion of the purchase of approximately 155 acres of land underlying the Wynn Al Marjan Island integrated resort development site, including the remaining 70 acres of land on Island 3 for potential future development,” the company said in its quarterly statement.

Wynn Resorts projected that its remaining 40 per cent pro-rata share of the required equity for the construction of the Wynn Al Marjan Island integrated resort is between $800 million and $875 million, inclusive of capitalised interest, fees, and certain improvements on the Island.

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