Wynn Al Marjan Island, the multi-billion-dollar integrated resort rising on Ras Al Khaimah’s coast, will now open its doors next year with a slight delay as regional war continues to affect global supply chains and shipping insurance markets, a senior official said on Wednesday.
“Construction at Wynn Al Marjan Island (is) progressing at a rapid pace. Wynn Resorts, alongside our partners in Ras Al Khaimah, are now pleased to announce that Wynn Al Marjan Island, the most exciting integrated resort to be developed in over a decade, will open its doors to guests in September of 2027,” Craig Billings, CEO of Wynn Resorts.
He told analysts during the company’s Q2 earnings call that interior work on the resort’s hotel rooms is now underway with mechanical, electrical, and finishing trades moving in sequence.
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“In addition to construction, pre-opening hiring, and operations planning are advancing very well. As development of Wynn Al Marjan Island progresses, regional conflict-related disruptions initially impacted global supply chains, and continue to impact the shipping insurance markets. This has required certain materials and equipment to be resourced, rerouted, or expedited to ensure the project’s construction timeline,” he said.
“In addition, we experienced certain other disruptions associated with the movement of staff and consultants and other non-recurring issues. These disruptions have impacted both the timing and cost of the project. On timing, we now expect the project to open its doors to the public in September 2027,” he added.
Budget swells by $600 million
The delay comes at a cost. Billings said Wynn Resorts is raising the total project budget for Wynn Al Marjan Island by roughly $600 million (Dh2.2 billion).
“Of that, approximately half is directly attributable to disruption from the regional conflict, material cost increases, shipping cost increases, and the pre-opening and capitalised interest costs associated with the extended construction timeline created.
“The remaining portion reflects remeasurement, trade coordination, and other costs you’d expect on a project of this scale and duration, independent of anything happening in the region,” he said.
Despite the setbacks, Billings struck an upbeat tone about the UAE market, pointing to a June visit to check on progress in person.
“My flights were full, and day-to-day activity in Dubai was healthy. We continue to believe this will be the most exciting integrated resort opening globally in over a decade, and we remain as committed to and confident in the UAE as ever.”
Wynn Resorts holds a 40 per cent stake in the joint venture building the project.
The US-based hotel and casino operator said it contributed $48.1 million (Dh176.5 million) in cash to the venture during the period, bringing its life-to-date cash contributions to $1.06 billion.
Source: Khaleej Times