UAE’s Casino Market Set to Rival Singapore with Strong Demand Drivers and Luxurious Appeal
Analysts from Morgan Stanley have drawn parallels between the prospective casino sector in Ras Al Khaimah and Dubai and the model that has already shown to be successful in Singapore. We use Dubai, which is the largest international airport and city that is closest to Singapore, as a comparison for RAK, as the experts pointed out. In conclusion, it would seem that RAK/Dubai has demand drivers that are comparable to those of Singapore, which may indicate an extraordinarily high return on capital spent.
The fact that Dubai and RAK include a number of characteristics that might offer them an advantage over Singapore is one of the most important benefits that the experts have brought to light. A greater local population, increased levels of tourism, and a wide variety of five-star hotels are some of the factors that contribute to this increase. These kinds of benefits might put the United Arab Emirates in a position to attract a wide variety of tourists, including high-net-worth people as well as tourists from other countries who are looking for lavish entertainment experiences.
How the United Arab Emirates Could Develop Into a Casino Market Worth $5 Billion
The forecast of $3 billion to $5 billion in gross merchandise revenue by Morgan Stanley is not without precedent. It has been predicted by several research companies in the past that the Wynn Al Marjan Island integrated resort, which is scheduled to open in the beginning of 2027, may produce $1.4 billion in annual gross gaming revenue (GGR) on its own once it achieves its full operating capacity. In light of this, it may be deduced that the Wynn property has the ability to cover over half of the lower end of Morgan Stanley’s prediction.
The contributions of Wynn’s resort alone will not be sufficient to attain the $5 billion GGR milestone; other contributions will be required. There are a number of other reasons that might play a significant part in driving the casino business in the UAE to that level. The contributions from the planned casino project carried out by MGM, the number of gaming locations that the United Arab Emirates will finally authorise, and most importantly, the question of whether or not local citizens will be allowed to play are all included in this category.
As of right now, the regulatory bodies in the UAE have not disclosed the number of gaming licenses that they intend to distribute. Despite this, Morgan Stanley pointed out that it is not out of the question for the Emirates to give their approval to other integrated resorts beyond the two that are now located in Singapore. It is possible that in the future, more casinos in addition to the Wynn and MGM sites might be created, which would contribute to an increase in the total gross gaming revenue for the United Arab Emirates.
As of the previous year, Bill Hornbuckle, the CEO of MGM Resorts, said that the total number of casinos in the United Arab Emirates (UAE) may potentially reach four, but this number is still considered to be speculative at this point. If this prediction turns out to be right, it would provide the United Arab Emirates with a significant boost in its efforts to become a key destination for casinos across the world. Additionally, the option of permitting locals to bet might significantly broaden the possible income base that could be generated.
Probable Clientele for Casinos in the United Arab Emirates
Another significant element that might contribute to the possible success of casinos in the United Arab Emirates is the predicted increase in the number of tourists from other countries. Analysts from Morgan Stanley pointed out that it is anticipated that a sizeable number of the customers who frequent casinos in the United Arab Emirates would originate from Europe and Southern Asia. Both areas have strong linkages to the United Arab Emirates (UAE) via international commerce, tourism, and investment. Additionally, they are huge marketplaces that include a considerable number of prospective casino customers.
In addition, the United Arab Emirates already draws millions of visitors from all over the globe every year. These tourists are attracted to the country because of its high-end shopping, hotels of world-class quality, and cutting-edge entertainment facilities. With the inclusion of casinos, the United Arab Emirates (UAE) would be able to further expand its tourism offers, which would encourage even more high-spending tourists to visit the nation.
Additional Singaporean Casinos for the United Arab Emirates
When taking into consideration the potential for expansion in the casino industry, the Comparison between the United Arab Emirates and Singapore is especially appropriate. The subject of whether or not United Arab Emirates casinos will allow locals to gamble is one of the most important factors that will define the profitability of these establishments. The United Arab Emirates (UAE) is not an exception to the rule when it comes to having an affluent and rising population that has the potential to considerably contribute to gross gaming revenue (GGR). Historically, many casino markets have depended primarily on local involvement.
It is possible that the number of millionaires in the United Arab Emirates (UAE) is smaller than in Singapore; nonetheless, Morgan Stanley has noted that the UAE has seen a significant increase in the number of people with very high net worth over the last few years. As a result of this expansion, Singapore has been outrun, which indicates that there is a significant market that has not yet been exploited inside the United Arab Emirates itself, especially if rules let local citizens to bet.
The establishment of casinos in the United Arab Emirates is not anticipated to have a negative impact on gaming revenues in other areas, notably in Asia, according to Morgan Stanley, which emphasised this point. In the case of Singapore, where the introduction of two integrated resorts in 2010 did not have a detrimental effect on Macau’s gross domestic product, the experts cited Singapore as an example. In point of fact, Macau’s gross gaming revenue (GGR) increased by $9.9 billion in 2011, whilst Singapore’s casinos produced just $6 billion in revenue during the same year. It would seem from this that the establishment of casinos in the United Arab Emirates may be beneficial to the current gaming markets rather than detrimental to them.
Concluding Remarks
The ability of the United Arab Emirates (UAE) to become a casino market worth $5 billion is not only a matter of conjecture; rather, it is a possibility that is founded on favourable characteristics such as high levels of tourism, rich local populations, and worldwide interest. Considering that Wynn Al Marjan Island is already in the process of being developed and that MGM Resorts is preparing itself for the possibility of obtaining a gaming licence in Abu Dhabi, the United Arab Emirates is well on its way to being a preferred location for gaming on a worldwide scale.
The future seems to be bright for the casino sector in the United Arab Emirates, despite the fact that there are still doubts over the precise number of casinos that will be licensed and whether or not residents will be allowed to wager. It is possible that the United Arab Emirates may soon be able to compete with Singapore in terms of gross gaming revenue (GGR), putting it firmly on the map as one of the most powerful gaming markets in the world.
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