Major Funding Secured for Al Marjan Island Resort
A significant financial milestone has been reached for the resort development on Al Marjan Island in the United Arab Emirates (UAE). A substantial construction loan, totaling $2.4 billion, has been secured from a consortium of international lenders, paving the way for the project’s continued progress.
First Integrated Resort in the UAE
The Al Marjan Island resort, first announced in early 2022, is poised to become the UAE’s inaugural integrated resort. The project’s initial budget has been revised upwards to approximately $5.1 billion, reflecting the scale and ambition of the development.
The financing package is structured as a secured term loan facility with a seven-year term, denominated in both US dollars and Arab Emirates Dirham. The majority of the development costs are expected to be incurred in dirham. It is considered a landmark hospitality financing deal within the UAE.
Key financial institutions played pivotal roles in securing the funding, including Abu Dhabi Commercial Bank and Deutsche Bank as joint coordinators. Other banks involved in the syndicate include First Abu Dhabi Bank, Emirates NBD Capital Limited, The National Bank of Ras Al Khaimah, and Sumitomo Mitsui Banking Corporation. First Abu Dhabi Bank is acting as agent and security agent for the lenders.
Construction Progress Update
Significant progress has been made on the resort’s construction. As of early February, the main resort tower’s structural concrete work has reached the 34th floor, representing 64% completion. The construction team is reportedly completing approximately one floor per week, with the goal of reaching the topping-off milestone in December.
The resort tower has risen approximately 140 feet in the past 100 days. Upon completion, the resort will boast 1,542 rooms and suites. Interior fit-out work is underway in over 1,120 rooms, and the exterior façade window glazing is more than 20% complete.
The low-rise portion of the building is also progressing, with concrete and steel structures reaching a combined 70% completion. Exterior facades, interior fit-out, and elevator and escalator installations are also advancing across the property.
The resort will offer a wide array of amenities, including:
- Restaurants, lounges, and bars
- A nightclub and beach club
- A shopping promenade
- A theatre
- Meetings and events center
Licensing Landscape in the UAE
The Al Marjan Island resort is currently the only project to have secured a gaming license in the UAE, issued by the General Commercial Gaming Regulatory Authority (GCGRA) in October of the previous year. The GCGRA has also issued licenses to operate the UAE’s national lottery and a number of supplier licenses to provide gaming machines and technology.
Other major players have expressed interest in entering the UAE market. However, the GCGRA has indicated that it will proceed cautiously with resort licensing, focusing on the operators already licensed.
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