The impact of expo 2020 on the UAE economy and the real estate sector
Expo 2020, which promises to boost economic growth in Dubai is already a reality, with a good year before the opening of this world-class event in the city.
The economic impact of the event, envisaged by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the UAE, and Governor of Dubai has already been tested in different sectors.
Dubai real estate sector is booming as more and more professionals and specialists are employed in the city to support preparatory work and all key sectors such as air transport, tourism, hospitality, retail, logistics, and services. Finances are prepared with investments, which further stimulates the economy.
With the support of new initiatives, such as long-term professional visas and 100% commercial real estate, the real estate sector is already attracting incredible interest from international investors.
While Expo 2020 Dubai will contribute to the economy by hosting more than 25 million people, including over 70% international visitors, during this six-month event, the impact will be far-reaching.
Expo Dubai 2020 will focus mainly on Dubai’s investment sector as it will highlight the opportunities offered by the city and inspire visitors to explore the further potential Dubai has to offer during and after the exhibition.
With its central location, world-class infrastructure, and the highest security standards, Dubai is ready to amaze visitors by attracting more professionals and business people to the city.
The positive influence of the event will enter the economy, stimulating the growth of all key sectors and thus contributing to the competitiveness and attractiveness of Dubai, which is one of the most sought-after destinations in the world. There is euphoria that Expo 2020 will open gold doors for many.
These are some of the sectors that will benefit hugely from Expo 2020
Dubai is already considered a haven because of its beautiful location and tourist attractions. With the return to Expo 2020, Dubai will offer the luxury of tourists in search of accommodation. 71% of the 25 million visitors expected at Expo 2020 will be non-national visitors.
These figures show that there will be several increases in the real estate sector, which is a good sign since even though prices have risen since the third quarter of 2011, they are still 45% lower than the charts as compared to 2008.
This is a chance for real estate developers to contribute to Dubai’s future positively.
Twenty-five million visitors to Dubai at Expo 2020 are expected to join Dubai’s economic lists. The Emirates stock index rose by 4% shortly after winning the bid at Expo 2020. For the first time since 2008, Dubai’s economy index has exceeded 3,000 points.
And this is only the beginning. With the growth of hotel activities, transportation, communications, catering, and facilities needed to host Expo 2020, Dubai’s economy will be a strong point.
Work stopped due to years of recession will end, as the economy will have enough resources to recover from the epidemic fully. More flights to Dubai, more tourism, more retail outlets, and more transportation will drive GDP growth, which will promote economic stability that Dubai has been starving since 2008.
According to the Barclays report, in 2010, Dubai’s GDP will grow by 10.5%.
The World Expo provides a quick guide to the infrastructure of the host city. Shanghai, China, host of the Expo 2010, has invested about 40 billion dollars in its development, which has necessitated the creation of 6 additional subway lines, roads, tunnels, bridges, and screws.
Dubai Expo 2020 will have the same impact on its infrastructure. Ahmed bin Saeed Al Maktoum, a top financial leader, said at least $ 8 billion would be needed for the creation of Expo 2020. Jebel Ali, the host site of Expo 2020, is a 480-hectare space that will require new roads, subway extensions, buildings, hotels, and tourist facilities.
The Standard Chartered relationship in Dubai will drive its spending towards the growth of the city. It is expected that the capital expenditure will be used to develop infrastructure at the city level that is not yet planned and in the neighboring exhibition area, such as the extension of the red line to Dubai.
Expo 2020 will boost the labor market, as it will need more hands for all new construction projects, more tourism and more transportation.
The MEED reports have so far forecast the creation of 277,000 jobs at Expo 2020, of which 40% will be in the tourism, travel and leisure sectors. The real estate sector will occupy the rest of the percentage of work.
A new wave of enthusiasm follows the sector of employees, who expect to pay better or at least get a bonus due on the next road.
The media is now in place to research every little detail about Expo 2020. It is expected that the word “Expo 2020” will be the most used keyword in the years to come.
The media impact is just as significant. Almost all sites will have articles, news, reports, and quotes related to Expo 2020.
Where there is an exhibition, there are celebrities, which bring us to the fact that Dubai will accommodate more personalities because they will be interested in a family visit or an entertainment activity.
This participation of the media at Expo 2020 will bring a new topic of discussion and a new spark of enthusiasm. Soon there will be concerts, dance shows, and new media.
The Expo 2020 will boost the economy of the city, most notably the real estate sector in Dubai. Several guests are expected during the Expo, this, in turn, will rob off significantly on the all economy of Dubai. Indeed, better times are here for Dubai.