Dubai awarded a 4.4 billion United Arab Emirates dirham ($1.2 billion) construction contract to a Chinese developer to build the 26-acre The Island development, which many believe will be the first destination in the region to permit legal gaming.
Middle East business publication MEED reported that Dubai developer Wasl awarded the contract to Beijing-based China State Construction Engineering Corporation for the project, which is slated to include 1,400 hotel rooms.
On its third-quarter earnings call with analysts, MGM Resorts International executives confirmed The Island project would include hotels under the MGM Grand, Bellagio and Aria brands.
Currently, only some forms of online casino and sports betting are permitted in Dubai, but according to MEED, the inclusion of these brands raises "an expectation in the market that The Island could be home to gambling facilities if the UAE passes legislation that legalizes gambling."
The contract is the largest awarded in the emirate in six years since Dubai-based construction firm Alec and owner Ithra Dubai agreed on the $1.36 billion contract to build the One Za’abeel development that includes the 229-room One&Only One Za’abeel, due to open Dec. 1.
The Island site will be in the Umm Suqeim district of Dubai, adjacent to the Jumeirah Beach and Jumeirah Marsa al-Arab hotels and close to the Burj al Arab hotel.
The Dubai government’s official news agency, WAM, said in September the UAE government had created the General Commercial Gaming Regulatory Authority to oversee the activity, the latest step in legalizing and administering gaming, which remains a controversial activity in the Muslim world.
On Nov. 1, it provided a follow-up statement saying its Dubai Program for Gaming 2033 program would see gaming provide the emirate with 30,000 additional jobs and a $1 billion addition to its gross domestic product.