The US$4 billion Wynn Resorts development on Al Marjan Island in the United Arab Emirates will boost the long-term growth prospects and fiscal revenue of Ras Al Khaimah, according to ratings agency Fitch.
In a research note issued earlier this week. Fitch analysts pointed to the investments of two state-owned enterprises (SOEs) – RAK Hospitality Holding LLC and Al Marjan Island LLC – into the integrated resort development, adding that it expected these two entities to together hold the majority of shares in the joint-venture with Wynn.
This investment, Fitch said, will “weigh on public finances initially, but … potentially boost growth prospects and fiscal revenue in the long term.”
The ratings agency noted that the originally stated development cost of US$3.9 billion represents 32% of Ras Al Khaimah’s 2022 GDP. As recently reported by IAG, Wynn now expects the total development cost to reach US$4 billion of which around US$900 million will be contributed by the US casino giant.
Fitch’s commentary on the UAE integrated resort development came as it affirmed Ras Al Khaimah’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at “A” with a Positive Outlook, supported by “continued solid fiscal metrics, the benefits of its membership of the United Arab Emirates, high GDP per capita and low public sector debt.”
Due to open by 2027, Wynn Al Marjan Island is slated to incorporate 1,500 rooms, suites and villas, the UAE’s first casino, 24 dining and lounge experiences, a spa and wellness experiences, a high-end shopping esplanade, a state-of-the-art events center, a theater hosting a unique production show, and more.
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