The United Arab Emirates (UAE) is making a significant cultural and economic pivot by embracing the gambling industry, in an effort to diversify its economy away from oil and gas. Here’s what’s brewing:
- Construction is currently underway in the emirate of Ras al-Khaimah for a 350-meter-tall casino, which will become one of the largest in the world when it opens next year
- The country recently amended its civil code to ease restrictions on gambling. This follows the creation of a gaming regulator, which has already begun issuing licenses for online betting, lotteries, and sports-wagering platforms
- The UAE is leaning into its role as a premier destination for global travelers with money to spend. By establishing a regulated gaming environment, the country is signaling its ambition to compete with iconic hubs like Las Vegas and Macau
Implications for Investors:
- Hospitality and gaming operators may find a rare first mover opportunity in a tightly controlled but fast growing casino market
- Banks and advisors should expect heightened AML and compliance demands on any UAE gaming related flows
- Real estate and tourism assets near early casino sites could see a step up in valuations
