MGM Mirage Plans Abu Dhabi Non-Gaming Complex

Casino operator MGM Mirage is on their way to make their first steps towards opening a hotel and entertainment complex on Abu Dhabi Island in the Persian Gulf in conjunction with the Mubadala Development Co., the investment arm of the Abu Dhabi government. The luxury non-gambling resort located inside the Muslim world, between Saudi Arabia and Oman, is planned to cost $3 billion and expected to open in 2012.

The Las Vegas-based casino operator said that they will develop and manage the resort plan for a fee while Mubadala will be the owner of the complex planned for 50 acres on a downtown waterfront site. The luxury resort will have an MGM Grand hotel and two other MGM branded hotels with more than 1,200 rooms and will also include an entertainment arena, a retail complex, restaurants and conference rooms.

In a recent press release the casino operator announced that the complex will also bring luxury residential offerings, together with waterfront residences with private yacht berths with "unparalleled views of the city skyline" and "stunning panoramic views of the waterfront."

The only thing that is missing from this wonderful holiday destination is a casino, because of the gambling ban in Abu Dhabi. However, it looks that soon the region will turn into a global tourism destination.

Gamal Aziz, president of MGM Mirage Hospitality, declared that Abu Dhabi is more attracted by the entertainment, restaurants, nightclubs and retail offerings that MGM Mirage will bring to the Middle East. He considers a number of of the headliners who perform at MGM Mirage showrooms on the Strip may also be tempted to perform at the MGM Grand Abu Dhabi's planned 10,000- to 12,000-seat arena.

Gaming analysts thought the project would help the casino operator enlarge its reach to an unexploited market, and create a center of attention for new clients who desire to gamble to the company's 10 Strip casinos.

In a memo to investors Deutsche Bank gaming analyst Bill Lerner said "Ventures like these not simply extend the MGM Grand brand internationally, but permit MGM Mirage to exploit its brands and endow with another stream of revenue”.

Also, CIBC World Markets gaming analyst David Katz declared he anticipates more non-gaming projects around the world to be part of the MGM Mirage development. "The group will continue to control its brands and proficiency without deploying capital for non-gaming prospects."