Dubai Expo 2020: Victory sign of a booming economy

By Swati Srivastava

One year ago, the UAE won the right to host the World Expo 2020, a major victory for Dubai that drew cheers, excitement and a dizzying range of analysis, predictions and development reports from around the world.

Despite the hard hit during the financial crisis in 2008, the UAE has gotten back up and is showing no signs of slowing down. With a boost in the tourism market and continuous efforts by the government to propel the UAE as one of the world’s most innovative countries, leaders are looking to set the bar on the world stage through the historic event that will run from October 20, 2020 till April 10, 2021.

The country has also become the host of several international mega events such as the World Summit, Dubai Air Show, Formula 1 races, and the World Economic Forum. Moreover, now with the Expo 2020 win, Dubai’s economy and brand reputation is on the fast track of development and global competitiveness.

“Dubai’s economy was already in the ascendancy prior to the announcement of the win,” said Reem Al Hashemi, UAE Minister of State and Managing Director of the Dubai Expo 2020 Higher Committee and Director General of the Dubai Expo 2020 Office. “The feel good community spirit of knowing Expo 2020 is coming to the UAE continues to drive economic progress.”

The Dubai 2020 win, however, expects to have an unprecedented positive impact beyond the UAE’s borders.

Gateway city to the MENA region

According to a statement by the Dubai World Trade Centre (DWTC), the economic impact of World Expo 2020 in the MENA region is valued at $24 billion and expected to attract around 25 million visitors.

With Dubai’s strategic location in the GCC paired with significant investment in hospitality, retail infrastructure and tourism, the first ever World Expo held in the MENASA region could have enormous impact on the overall attractiveness and potential for future investments in the country and region.

“While close to $7 billion has reportedly been earmarked for development and infrastructure projects in Dubai so far, and tens of millions of visitors are expected in the first six months, said Mutasem Dajani, Deloitte’s UAE regional managing partner. “The fact that Dubai is itself strategically located within four hours of a third of the world’s population this Expo has potential for wider impact leading up to the event and afterwards for years to come.”

The Dubai Expo 2020 theme, “Connecting Minds, Creating the Future,” already highlights the importance of innovation and partnership to create a foundation for sustainable growth and development. It also emphasizes on the importance of creating mobility and opportunity for the overall growth of the country.

According to Jeff Singer, CEO of DIFC Authority, Dubai’s regional and global position as a thriving business hub and gateway to markets in the region make the Expo the perfect “economic catalyst that will create a long-term boost to local and regional economies in key business sectors such as finance, logistics and tourism.’’

Local economy boost

In addition to the honor, privilege and expectations that come with being a World Expo host country, the global event also allows them to showcase some of their most attractive aspects. For Dubai, it is the remarkable transformation the city has undergone in the last few decades to become one of the most innovative cities in the world.

“Events like Expo 2020 not only elevate the brand reputation and attractiveness of the host city/country as a destination, but more importantly, they also stimulate economic activity, FDI [Foreign Direct Investment], and business growth. Expo 2020 will naturally serve as a lever to further the UAE’s competitiveness across all these parameters,” said Hashemi.

According to research from LinkedIn, around 49,000 LinkedIn members have moved to the UAE in the last 12 months, building a strong talent pool ahead of Dubai’s Expo 2020. More than 275,000 jobs will also be created across the MENA region in various sectors including aviation, construction, transportation, retail and SMEs within the next six years to service Dubai Expo 2020.

The Dubai 2020 win has already placed the city as the center of attraction, while projecting the further growth for banking, real estate, and construction sectors and pay hikes that are estimated to increase by 20 per cent in the construction and real estate sector.

As expected, the event will also require “an additional 50,000 rooms in more than 200 properties of all categories from budget through to luxury, which is expected to create 100,000 new jobs in tourism and hospitality.” The impact of this boost in the hospitality sector will also be felt in neighboring cities including Abu Dhabi, Sharjah and Ras Al Khaimah.

The positive effect of the Expo 2020 will do more than generate jobs, boost the regional economy and see a host of in-region urban developments, technological innovation and logistics. It is bound to leave behind a positive legacy across the entire region.

“Thirty years ago who wanted to come to Dubai?” said Najeeb Al Ali, Expo 2020 advisor. “Now everyone is dreaming. When it comes to creating the future there is no place like Dubai.”

Author Bio:

Swati Srivastava is an avid writer who loves to pen down her opinion on economic issues, career advice, and global issues. You can reach her at G+.