Investor confidence is riding high as Wynn has secured a major $2.4 billion loan to fund its upcoming Middle East confidence
The Wynn Al Marjan Island is coming. The soon-to-be-renowned Las Vegas-style casino resort, and the first of its kind in the Middle East, will be moving forward as the company behind the project, Wynn Resorts, has been able to secure the $2.4 billion it needs to kickstart things.
Wynn Gets $2.4B to Push Forward with Ambitious Middle East Casino
The project is already under construction in Ras Al Khaimah and it will be the first commercial casino floor in the Arab world, due to open in 2027, and to rival global gambling hubs such as Macau and Las Vegas. The term of the loan is seven years, and Wynn is confident that it will allow it to fund its future operations. The company said in a statement:
“The term of the loan is seven years at a competitive market interest rate and is structured as a delayed draw facility which provides significant financial flexibility to the joint venture partners.”
The loan is denominated in dollars and dirhams and has been secured by Wynn Al Marjan Island FZ-LLC which is in charge of the local project. The fact that the company is able to secure a rather large loan and access funds readily means that there is enough confidence in the project’s success and the long-term implications of a casino in the Middle East.
Yet, first-mover as Wynn Al Marjan may be, it’s unlikely to remain the only commercially viable casino in the United Arab Emirates, with other Las Vegas giants already courting a potential local market, first in the form of hotels and then possibly expanding to a casino floor.
The loan was released by a number of regional and global banks, among which were First Abu Dhabi Bank PJSC, Emirates NBD Capital Limited, the National Bank of Ras Al Khaimah, and others. They all undertook a different role in the funding.
Temporary Monopoly Set to Pay Off in Full
Of course, investors are counting on things not moving too quickly for other casinos, with the local regulator, the General Commercial Gaming Regulatory Authority only having furnished a license approval for Wynn Al Marjan Island, essentially making it a monopoly for the time being.
It could be years before another property actually brings things to speed, although several hotel projects might actually make the move towards casino operations and are most likely planning it, bidding their time. Wynn is pursuing a similar strategy with a hotel tower completed at the end of this year, and then further additions made to the overall project.
The securing of the loan is a major step forward that will all but guarantee that the original schedule of construction is kept.
