Bill Hornbuckle, CEO and president of MGM Resorts, said that the Dubai project would be completed in the third quarter 2027. If the timeline is accurate, the company will have spent 20 years trying to gain a foothold within the UAE.
The building [the MGM in Dubai] Third quarter of ’27 is expected to be completed. “We are literally on the fifth level of the MGM Tower right now,” Hornbuckle said during the company’s first-quarter earnings call The 30th of April is a day to remember.
The development is known as “The Island” and the plan includes three MGM brands — Aria, MGM, and Bellagio — combined into a 1,400-room beachfront resort. A ‘Dubai Sphere’ It is part of the overall plan.
The project was originally announced in 2017 Dubai’s ruler has been moving slowly. MGM has been trying to enter the UAE since 2006. a new partnership with Abu Dhabi government developer Mubadala Explore opportunities
The 20-Year History
MGM and Mubadala revealed plans in 2007 for the construction of a new a $3 billion non-gaming resort in Abu Dhabi With a projected opening in 2012. In 2011, Abu Dhabi officials said the project was still “under review” You can also There is no evidence that Both parties have publicly stated that they are not interested in a public debate.
Dubai World, a state-owned investment corporation, was also established in 2007. acquired a 9.5% stake in MGM Resorts Dubai World (then MGM Mirage), and Dubai World formed a joint-venture to build the $8.5 billion CityCenter in Las Vegas. Dubai World holds a 50 percent stake via its subsidiary Infinity World Development Corp. The JV had no plans to construct projects in the UAE.
MGM announced in 2009 its own project for Dubai. Plans included a 350-room MGM Grand and Skylofts hotels as part of this. Pearl Dubai development near Palm Jumeirah. The project failed to take off. The land was largely undeveloped and by 2023 the Dubai government repossessed the site and demolished all partially built structures. The land remains unoccupied, and there are no plans to reuse it.
MGM bought out Dubai World’s stake in their joint venture In 2021, the company sold a portion of its real estate portfolio for $2.1 billion. Later it sold a similar amount to Blackstone.
New Gaming Landscape
The Island is aiming to open in 2027, which coincides nicely with a wider shift in UAE gaming policy. Wynn Resorts is on track to open its integrated resort with a casino in Ras Al Khaimah — about an hour from Dubai — in early 2027. Wynn already holds a gaming license Positioning the property is a good idea attract customers from Dubai and Abu Dhabi.
Hornbuckle, when asked about MGM’s efforts to obtain a license by itself, told investors that it was up to the local leadership.
He said that the fate of the UAE was in the hands of the seven sheikhs. “This is exactly like the [United] States. States. “They haven’t confirmed or denied anything.”
The UAE established its federal gaming regulator — the General Commercial Gaming Regulatory Authority (GCGRA) — in 2023.
Hornbuckle has confirmed that the date for September 2024 is 9/30/2024. MGM had submitted an application for a gaming license in Abu Dhabi. In November the GCGRA stated The company was not in any hurry to expand its casino business beyond Wynn’s, which could indicate that it will have a monopoly on the market for a number of years.
CBRE estimates that the total addressable market for casinos in the UAE is upwards of $8 billion. This would mean that the UAE casino industry would be comparable to the Las Vegas Strip in size and would be 50%-70% greater than Singapore’s existing casino industry.
Why This Time Could Be Different
Despite delays, a number of developments indicate that MGM’s Dubai resort could finally reach the finish line.
In late 2023, Wasl Asset Management — the local developer backing the project — awarded a $1.2 billion construction contract The Island is being built by China State Construction Engineering Corporation.
Jim Murren was the former Chairman and CEO of MGM Resorts as well as Hornbuckle’s boss. William W. Grounds was the former president and chief operating officer of Infinity World Development Corp. Grounds served on the board of MGM when Murren was CEO.
Hornbuckle stated on the phone that he, along with his team, had just met the Dubai prince.[Our] [when in Dubai] It was to meet with the prince, to tell him what we were doing, and to let him know the possibilities that gaming would bring not only to Dubai, but to all of UAE. We also wanted to share the entertainment potential and uniqueness that the project could bring.
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