Morgan Stanley: UAE Casinos Could Rival Singapore

Finance experts are optimistic about the future of casino gaming in the United Arab Emirates, believing the local industry could challenge long-established gambling hubs such as Singapore.

Morgan Stanley Analysts Are Optimistic

According to Morgan Stanley, an American multinational investment bank and financial services company, casino resorts in the UAE could potentially generate gross gaming revenue of between $3 and $5 billion.

Rosier estimates predict that the Emirates could cement itself as a leading hub for gambling tourism that rivals Singapore. This analysis comes amid the UAE’s ongoing warming up toward the idea of casino resorts.

As of the time of this writing, UAE casino gaming is not yet a reality but the region has gradually been inching closer to the realization of gambling-related projects. Major operators such as Wynn Resorts and MGM Resorts have expressed interest in constructing casino resorts in the region and becoming pioneers in the country.

Wynn is already working on its Wynn Al Marjan Island resort in Ras Al Khaimah. MGM, on the other hand, is eyeing opportunities in Abu Dhabi.

The Future of UAE Gaming Is Still Blurry

While both MGM and Wynn are powerhouses in the world of gaming and hospitality, Morgan Stanley didn’t confirm whether their resorts would be enough to generate $3-5 billion in GGR.

However, earlier predictions show that Wynn Al Marjan could possibly generate as much as $1.4 billion GGR a year. If competitors are able to replicate this success, a handful of resorts should be able to achieve the GGR outlined by Morgan Stanley.

Of course, the actual GGR would depend on a variety of circumstances, including local regulations and whether the UAE would allow other companies in at all. MGM’s leadership, meanwhile, predicted that there could be a total of four such resorts in the country.

A lot is still unclear, especially in terms of regulation. While lawmakers have clearly demonstrated interest in casino gaming, the cultural specifics of the region are making it harder to make significant strides. If casino gaming is permitted, after all, locals might be unable to participate in it.

If locals are permitted to wager, that would potentially add a huge boost to the industry, considering that the UAE is the home of quite a few wealthy individuals.

In any case, Morgan Stanley analysts believe that the majority of gaming tourists would come from Europe and Asia. Despite that, they doubt that casinos in the UAE would cannibalize the profits of casinos in other gambling hubs.