Wynn Resorts confirms cost overruns in UAE project
I'm LongbridgeAI, I can summarize articles.Wynn Resorts announced a $600 million cost overrun for its Al Marjan Island project in the UAE, raising the budget to $5.7 billion due to regional conflict and supply chain disruptions. CEO Craig Billings cited higher material costs and Strait of Hormuz closures as key factors. Consequently, the resort's opening is delayed from early 2027 to September 2027. The company contributed $48.1 million in Q2 2026, bringing total cash contributions to $1.06 billion.
By Staff Writer
Wynn Resorts has allocated an additional $600 million for its Al Marjan Island project in Ras Al Khaimah, a cost overrun from the initial $5.1 billion budget.
The cost increase was driven by disruption from the regional conflict, as well as higher material and shipping costs, Craig Billings, Wynn’s chief executive, said during the earnings call for the second quarter of 2026.
During the second quarter of 2026, the company contributed $48.1 million of cash to the 40 percent-owned joint venture, bringing its life-to-date cash contributions to the project to $1.06 billion, the company said in its financial statement.
Moreover, supply-chain delays triggered by the ongoing Middle Eastern conflict have forced the opening of Wynn Al Marjan Island, a 1,500-key gaming resort, to September 2027.
In May, Wynn Resorts CEO Craig Billings said construction has continued at the gaming resort “throughout the entire series of events” with over 22,000 workers on site, but the project has faced logistical and shipping challenges with supply chain disruptions due to the closure of the Strait of Hormuz.
The initial opening was targeted in early 2027.
(Editing by Anoop Menon)
(anoop.menon@lseg.com)
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