According to investment bank Morgan Stanley, casinos in the United Arab Emirates could generate between $3 billion and $5 billion in gross gaming revenue annually, due to the country’s busy airports, large number of ultra-high-net-worth individuals, and This fact is cited as the reason. It boasts more five-star hotels than Singapore.
However, such numbers depend on whether local residents are allowed to gamble, and geopolitical risks remain a long-term consideration, analysts said in a note.
Morgan Stanley took a deep dive into the UAE’s opportunities and outlined a number of positive indicators for the emerging market. There, Wynn Resorts is currently developing a $4 billion integrated resort in Ras Al Khaimah (RAK), and MGM Resorts is considering a potential license in Abu. Dabi.
According to Morgan Stanley, the UAE compares favorably with Singapore’s highly successful IR market, with Western Europe and South Asia expected to be key feeder markets.
“We benchmark RAK with Dubai, the closest large international airport/city to Singapore,” the analysts wrote. “Ultimately, RAK/Dubai appears to offer similar demand drivers as Singapore, which could represent a very significant ROIC.
“Dubai/RAK has a larger population than Singapore, more visitors, and more five-star hotels.Although the number of billionaires is decreasing, the number of ultra-high-net-worth individuals has increased even more in recent years.”
Commercial gaming licenses have not yet been issued, but Morgan Stanley estimates the UAE will eventually establish more IRs than the Singapore duopoly, with an advantage of between 10% and 12%, although this is not yet confirmed. It added that additional gaming taxes may apply.
Wynn Resorts previously said it expects ROIC to be between 12% and 15%, and that it expects the overall market GGR estimate to reach USD 5 billion, pending the number of IRs and other factors. .