Las Vegas-based Wynn Resorts announced this week it has finalized and obtained a $2.4 billion loan to finance building its Wynn Al Marjan casino resort (renderings pictured) in the United Arab Emirates.
The so-called “integrated resort” is set to be the first of its kind in the wealthy but historically anti-gambling Middle Eastern nation. With an estimated cost of $3.9 billion, Wynn will still be investing a significant amount of its own cash into the project.
The $2.4 billion loan was provided by a syndicate of global banks, including Deutsche Bank, Abu Dhabi Commercial Bank, and Sumitomo Mitsui Banking Corporation. Wynn announced the completion of the loan on Friday in a press release.
The casino and hospitality operator said the $2.4 billion loan is the largest hospitality agreement in the history of the UAE. Construction on Wynn Al Marjan is already underway, with the 1,542-rooms hotel complex set to open in 2027.
The Financing
The $2.4 billion loan is over a seven-year term and is structured with a delayed draw agreement, meaning Wynn will take on the full amount in pre-agreed stages. It therefore only pays interest each month on a portion of the full loan until it is all handed over.
“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 press release said.
Investors may feel confident in putting in billions into the project, as the UAE has the potential to be a huge, multibillion dollar casino market. Wynn also – so far – has the only casino license. Although at least one more is expected in the coming years, Wynn now has a head start on what could be a very profitable market.
The Project
Wynn also provided an update on the build of the $3.9 billion property, which is ongoing. Wynn Al Marjan is approaching 64% core structure completion, the operator said.
The Al Marjan island is a sprawling, four-mile long artificial island complex on the Arabian Gulf, with a dozen high-end developments already underway. Wynn Al Marjan is the centerpiece of the project.
The UAE’s first casino will form the base of the structure, alongside dozens of retail and dining options and a large, 145,000-square-foot meeting and event space. The golden-tinted hotel tower will have 1,542 hotel rooms and suites, of which 1,200 have been structurally completed. Outfitting is already underway in some 1,000 rooms, Wynn said.
The operator recently invested an undisclosed fee to purchase the small-scale luxury venue Crown London Casino in London, England. It says it aims to use the high-end London clientele to cross-promote the Al Marjan project.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
