CBRE Capital Advisors has called the United Arab Emirates (UAE) the “next frontier for gaming” and predicts it could generate $8.5 billion in revenue, a level of revenue that would allow the UAE to compete with major gaming hubs such as Las Vegas and Singapore.
“We believe the UAE represents one of the most compelling opportunities in global gaming, given its robust tourism industry, high propensity for luxury and consumer spending, business-friendly operating environment, strong transportation and lodging infrastructure, and virtually no gaming competition in the region,” commented John DeCree, head of institutional investor research, and Colin Mansfield, head of credit research.
Favorable environment for operators
In the report, CBRE takes the UAE’s progressive stance in attracting investment and tourism, which the executive claims creates an “operator-friendly environment.” Unlike regions such as New York and Japan, where regulatory processes are carried out through delays, the UAE guarantees a regulatory environment. This, coupled with favorable long-term economic prospects and minimal competition, ensures the development of integrated resorts in the UAE.
“This could be the Las Vegas of the Middle East,” DeCree added during the webinar, noting that only a portion of the Las Vegas Strip’s revenue comes from gaming. “Las Vegas is more of a non-gaming destination, even with the development of the gaming component, but in terms of the current experience of integrated resorts, the UAE is moving towards that path.”
Strategic investments and infrastructure development
The UAE’s strategic investment in airports aims to significantly increase tourism potential. “What’s becoming more interesting is the lack of regional competition,” DeCree said. Colin Mansfield noted that the country is paying special attention to improving tourism infrastructure for future generations.
Future projects and possible locations
CBRE’s ideas stemmed from their visit to the UAE in May, which included a visit to Wynn’s integrated beach resort on Marjan Island in Ras Al Khaimah, scheduled to open in 2027. DeCree noted that Yas Island in Abu Dhabi and the Island project at Jumeirah Beach in Dubai are likely candidates for future integrated resorts.
Regulatory changes on the horizon
DeCree believes regulation of gambling in the UAE is inevitable, paralleling previous relaxations of activities such as alcohol consumption by non-Muslims. Amendments to the Criminal Procedure Code are expected in the near future. The expected regulatory framework will be “operator-friendly”, allowing for one integrated resort in each emirate. The initial focus is likely to be on national lottery regulations and operator licensing, followed by developing a comprehensive structure for integrated resorts.
Revenue and market potential forecast
According to CBRE, the three integrated resorts in Abu Dhabi, Dubai and Ras Al Khaimah could generate approximately $6 bln in total gaming revenue. With a population of 9.7 million, mostly foreigners, and a strong tourism industry attracting around 25 million visitors a year, the UAE provides the required investment opportunities.
CBRE’s forecasts show strong returns and high yields for properties on the island of Winn Al Marjan, driven by strong demand and favorable regulatory economics. Wynn’s management contract and economic project share of 40 percent could generate annual free cash flow by 2030, according to the report.
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