Casino update: Dubai awards biggest island construction contract to house MGM, Bellagio

Two months since the UAE set up a federal authority to introduce a regulatory framework for national lottery and commercial gaming, there is news of Dubai formalising one of the largest construction deals for ‘The Island’ project to house casino gaming brands, according to a report by MEED.

The contract has been awarded to Beijing-based China State Construction Engineering Corporation by local developer Wasl, noted the publication, with an estimated cost of Dhs4.4bn($1.2bn). Additionally, Germany’s Buro Kling Architectural Engineering Consultants is the main consultant and structural consultant for the development.

What is The Island project?

Spread across 10.5 hectares, The Island project is planned to include properties featuring the MGM, Bellagio and Aria hotel brands. MGM operates casinos in other international jurisdictions and with the regulatory framework being set up, The Island could be home to commercial gaming facilities if the UAE passes legislation that legalises gambling, noted MEED.

Located off the coast of Umm Suqeim, near the Jumeirah public beach, it is expected to house 1,400 hotel rooms and apartments, in addition to retail, food and beverage and entertainment options.

According to project intelligence database company BNC Network, the development at Jumeirah Beach front, could feature a 110-metre-tall entertainment tower in the middle of the island. The development will feature indoor and outdoor swimming pools, a business lounge, water fountains and artificial waterfalls.

The project, first announced in 2017, touted a 500,000-sq-ft theatre, a range of restaurants, museums, a major beach club and adventure zones for both adults and children, among the other amenities to be built on “the longest stretch of water-front ever developed in Dubai.”

Casino industry in the UAE

The announcement adds to the growing number of projects that are being set up to cater to a future adult gaming industry the UAE. Early last year, the Wynn Resort announced that the group would open a new location on Marjan Island in the emirate of Ras Al Khaimah.

Following this, the Ras Al Khaimah Tourism and Development Authority (RAKTDA) launched a new department for ‘gaming’ which will ensure “global best practices in the regulation of gaming that operate as part of integrated resorts across various jurisdictions worldwide”.

Its key priority will be to create “the regulatory structure which will address the entire gaming enterprise within integrated resorts, requiring compliance with all applicable laws and regulations (including financial crime laws) from operators, suppliers and employees,” noted RAKTDA.

Hogan Lovells, a legal consultancy firm noted, “The $4bn Wynn resort under construction in Ras Al Khaimah is at the vanguard of what are expected to be a number of resort developments seeking to attract visitors in this sector.”

Opportunities for tourism growth

The firm’s advisory note underscored the opportunity available to the UAE with its possible foray into the commercial gaming industry.  It notes, “Commercial gaming is popular across many parts of the world, in particular the US, the Far East and to a lesser extent, Europe.

“It is not available in any scale between China and Europe and this presents an opportunity for the UAE to attract international visitors particularly those from the wider region of Asia and Africa. This represents a significant opportunity for the UAE to further develop its offering and attract additional tourists and visitors, as well as create new jobs and business opportunities in a growing market. The UAE’s already well developed tourism infrastructure is well appointed to support this further growth.”