The rise of the UAE's casino business and what it means for the outdoor furniture market

The United Arab Emirates is taking its first foray into the gaming world and will see the first development from Wynn Resorts in the northernmost emirate, Ras Al Khaimah. The exciting current plans of the international beach resort destination include a?1,000-room hotel, a high-end shopping mall, a state-of-the-art meeting and convention facility, an exclusive spa, more than 10 restaurants and lounges, a wide array of entertainment choices, a gaming area, a marina and other amenities. The project will be larger than the current flagship development, Wynn Las Vegas, making it one of the 10 largest casinos globally. Set to open in 2026, the casino will cover an impressive 18,500 square metres.?

The Wynn Resort will be the sole occupier of Dream Island, one of the four impressive islands that make up the Al Marjan archipelago. Al Marjan Island is a much sought-after destination for residents, tourists and investors. The artificial island extends a vast 4.5 kilometres into the sea and covers an area of 2.7 million square metres. Wynn is expecting the new destination to offer high-return opportunities for the company. For years, global casino bosses have set their sights on what was once thought impossible, gambling in the United Arab Emirates. Currently, the US giant Caesars has a resort in Dubai without a casino. All eyes are on Ras Al Khaimah. Its regional president said, "That acceptance now that there is going to be the potential of gaming in the UAE, in whatever form it's going to be, allows people like Caesars Palace Dubai and MGM Grand Hotel & Casino Las Vegas as well to look at that closely".

Ras Al Khaimah Tourism Development Authority, RAKTDA, spearheads the extensive project and has created a division to govern integrated resorts with the Department of Entertainment and Gaming Regulation. The department will oversee the emirate's social, cultural, and environmental landscape and cover licensing, taxation, operational procedures, and consumer safeguards to ensure responsible gaming. RAKTDA is currently writing gaming laws for the casino using Singaporean and US regulations to underpin its foundations. Ras Al Khaimah has competitively marketed the emirate as an adventure destination with attractions such as Jais Flight, the longest zipline in the world, sporting events and inimitable hiking and nature offerings.

Whilst the United Arab Emirates is famed for its state-of-the-art glitzy skyscrapers, formidable entertainment, vast shopping malls and extensive desert lands, it's an Islamic country with conservative regulations. The country is foreigner-friendly, with its ex-pat population massively exceeding that of the locals by 90 per cent. Until now, Islam has forbidden gambling. It's well-accepted that the UAE, despite its traditionalist laws, is open to the consumption of alcohol, unmarried cohabitation and wearing bikinis on the beach. Pre-pandemic, the country saw almost 30 million tourists from around the world. Between January and March, the UAE welcomed almost four million overnight visitors this year. A massive 214 per cent growth in the same period last year, ranked the UAE first globally in terms of hotel occupancy in the first quarter of 2022, registering 82 per cent occupancy.

The introduction of the integrated resort will, according to the Ras Al Khaimah Tourism Development Authority, be significant for the emirate and the country. The bold move is another acceleration of liberalisation, allowing the country to diversify from a traditionally oil-based economy and attract tourism, investment and foreign talent. Newly appointed Wynn CEO Craig Billings said in a statement to the press, "The region offers tremendous potential for the hospitality and tourism industry, and we are excited about the prospect of developing an integrated resort in Ras Al Khaimah".?Al Marjan is less than an hour from Dubai International Airport, affording it easy access for international travellers. In parallel, due to the rising disposable income and travel spending, the global tourism business has thrived in recent years. This trend has provided a lucrative opportunity for outdoor furniture manufacturers.

In a statement released during a regional travel exhibition held in Dubai earlier this year, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, said, "These results attest to the emirate's ability to develop a compelling value proposition…and innovative new offerings that meet the needs and preferences of the most discerning of global travellers".

Furthermore, South America and the Middle East & Africa are considered developing markets and are expected to witness noticeable growth rates due to the changes in the standard of living, leading to the flourishing demand for such high-quality outdoor products during the forecast period.

Whilst its primary purpose is functionality, investors and operators strive to create an appealing aesthetic for their hotels and resorts; from intimate, cosy lounges to open-plan spaces, the furniture chosen creates a lasting first impression. Introducing integrated resorts in Ras Al Khaimah, and possibly later in other emirates,???provides vast opportunities for architectural, interior design and furniture design industries.

The outdoor furniture market in general has been staggering and unprecedented across regions and markets, fulfilling the need to spend more time outdoors. In addition to aesthetics and functionality, outdoor furniture is tasked to withstand unforgiving climatic conditions by resisting corrosion, fading from the sun, water exposure and the wear and tear expected from a busy hotel or integrated resort, especially those harsh weather conditions of coastal UAE areas. The rise in expected standards has prompted furniture designers and their brands to upgrade their offerings encompassing fashion and luxury. Many manufacturers are already shifting their focus to crafting environmentally-friendly, durable furniture which doesn't harm even the most fragile ecosystem. We see brands like DEDON , Gloster Furniture and Indigenus Planters pave the way and navigate us towards a promising evolution in luxury outdoor furniture.

Besides the rise of the long-awaited Casino business, other driving factors are the fast-paced urban life and the increasing financial capacities of the population. Hence, the global tourism business provides lucrative opportunities for luxury outdoor manufacturers.? Fryzelka Martin , CEO of NextSpace , strives to elevate these stimulating new?brands through his ongoing involvement and commitment to cultivating an extraordinary legacy. He says, "New resorts provide a great opportunity for furniture providers across the United Arab Emirates with premium collections of luxury outdoor furniture brands. Choosing locally-grown suppliers with an intricate knowledge of the market, strong networks and relationships within the region ensure that such mega-resorts will stand out from the crowd. By providing useable customised and innovative furnishings for their guests' comfort, their outdoor furnishing partners will highlight the service offerings of the integrated world-class resort, making it a truly memorable experience". He continues, "The Middle East is expected to witness noticeable growth due to the changes in demand for luxury, high-quality products. The global market is expected to grow from US$46.21 billion to US$66.55 billion by 2028, an impressive compound annual growth rate, CAGR, of 5.3 per cent".