Ras Al Khaimah, UAE — The highly anticipated Wynn Al Marjan integrated gaming resort in Ras Al Khaimah is expected to be a “must-see” destination for tourists when it opens in 2027, according to Craig Billings, CEO of Wynn Resorts, Limited. The $3.9 billion (Dh14.3 billion) project is rapidly progressing, with construction well underway on Al Marjan Island. Billings expressed confidence that the resort will not only be a major draw for visitors but will also drive strong, long-term free cash flow growth for the company.
“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 company’s third-quarter financial results announcement.
In addition to the Al Marjan project, Wynn Resorts has increased its share repurchase authorisation to $1 billion as part of its efforts to return capital to shareholders. Billings also reaffirmed the company’s commitment to long-term shareholder returns, which include both dividends and opportunistic share buybacks.
A Global Gaming Hub in the Making
The resort is set to open in the first quarter of 2027, according to Max Tappeiner, the newly appointed president of Wynn Resort Al Marjan. Tappeiner also noted that Al Marjan could potentially become the world’s fourth-largest gaming market, alongside established locations like Las Vegas, Macau, and Singapore.
The Wynn Al Marjan Island resort represents a significant step in Ras Al Khaimah’s plans to boost tourism and become a global destination. The emirate aims to attract 3 million tourists annually by 2030, which includes increasing its hotel offerings and infrastructure.
In early October 2024, Wynn Resorts received the first-ever commercial gaming licence in the UAE from the General Commercial Gaming Regulatory Authority (GCGRA). This marks a pivotal moment for the UAE as the country embraces the burgeoning gaming and tourism sectors.
Wynn’s Financial Performance and Investment in Al Marjan
Wynn Resorts reported operating revenues of $1.69 billion for the third quarter of 2024, a modest increase from $1.67 billion in the same period in 2023. However, the company also recorded a net loss of $32.1 million for the quarter, a significant improvement compared to a net loss of $116.7 million in Q3 2023. The diluted net loss per share stood at $0.29, a sharp recovery from a loss of $1.03 per share during the previous year.
As part of its ongoing commitment to the Al Marjan project, Wynn Resorts contributed $18.2 million (Dh66.8 million) in cash to a joint venture for the development of the resort. This brings the total cash contributed to the project to $532.6 million (Dh1.95 billion). The company also detailed how these funds were primarily used to purchase 155 acres of land on the island, including the remaining 70 acres on Island 3 for future development.
Future Financing Needs for the Project
Wynn Resorts anticipates needing between $800 million and $875 million in additional equity to complete its 40 percent share of the Wynn Al Marjan Island resort’s construction, including capitalised interest, fees, and various island improvements.
With the UAE’s growing appeal as a luxury tourism and gaming hub, the completion of Wynn Al Marjan Resort is expected to be a transformative development, not only for Ras Al Khaimah but for the wider region’s tourism landscape.
