Economic growth in Ras Al-Kaima (RAK), part of the Middle East UAE, will benefit from the development of casino resort projects (rendering photos) involving global game operator Wynn Resorts, Fitch said in a note this week.
"As well as providing significant growth momentum in the short term, we expect it to attract additional investment to help increase economic resilience in the long term and serve as a catalyst for speeding up income convergence with colleagues," the rating agency said, noting that the project will be the first integrated resort with casinos in the Middle East.
Wynn Al Mazan Island has been described as a venture with $3.9 billion worth of local partners, while Wynn Resorts is a 40% equity investor. Wynn Resorts' local partners on Wynn Al Mazan Island are Marjan LLC and RAK Hospitality Holding LLC.
Wynn Resorts' group chief executive Craig Billings recently said the group's capital contribution to the UAE project will reach about $900 million. The project is expected to "open in early 2027," the company confirmed earlier this month.
According to the agency, Ras al-Kaima is expected to see strong medium-term economic growth of 6.2% and 5.0% in 2024 and 2025, respectively. This is supported by the development of the casino resort project and investment interest in the published master plan for Ras al-Kaima's RAK Central and Beach District.
The cost of the Wynn Al Marjan Island Unified Resort is $3.9 billion, accounting for about 32.0% of Ras Al Khaima's GDP in 2022, Fitch noted.
The facility on Wynn Al Marjan Island will include a 1,542-room hotel, including 22 private villas in the marina adjacent to the resort. The property will feature a 7,500-square-meter event center, a 15,000-square-meter retail venue, 22 restaurants, bars, and a theater, according to Wynn Resort.
The credit rating agency estimates that the construction phase will "raise real GDP growth by 1 percentage point in 2023, 2 percentage points in 2024 and 2 percentage points in 2025," adding that "the UAE's non-oil real GDP growth is usually consistent with our predictions for Ras al-Kaima."
In a note, Fitch raised Ras Alkaima's default rating on long-term foreign currency issuers to "A+" from "A" and said the outlook was "stable."
The ratings upgrade reflected Fitch Ratings' expectations of "improving credit metrics" for Ras al-Kaima on the back of its medium-term economic growth outlook, as well as the city's "record of resilience to external shocks" and prospects for "strengthening financial returns
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