The expected impact of Dubai Expo 2020 on the UAE economy
The global center stage belongs to Dubai and the UAE for the next few months, throughout the duration of Expo 2020 Dubai, termed as one of the biggest global events ever by many. This universal extravaganza of technology, business, connectivity, and showbiz already got underway in a spectacular style and is expected to bring millions of visitors from all over the world over the next few months.
The Expo 2020 Dubai will further cement the UAE’s place as a key global player in a number of fields, showcasing its strengths to the world and attracting not just tourists but business investments as well. It is no exaggeration to say that the Dubai Expo will have a telling effect on real estate, tourism, investment, construction, and many other sectors of the UAE economy.
Surprised? Don’t be. Here are some statistics (from Arab News) that prove just that.
- Expo 2020 Dubai will boost the UAE’s economic activity by a whopping USD 33.4 billion
- It will support no fewer than 905,200 full-time equivalent job-years
- The economic activity during Expo 2020 Dubai (October 2021 to March 2022) is expected to equal 1.5% of UAE’s total GDP
- Restaurants and Hotels spending will increase by USD 3.1 billion
- Spending in the SME sector will go up by USD 1.3 billion
- Event organization and business services are expected to see a growth of USD 18.8 billion
- The construction sector is likely to see an impressive growth of USD 7.35 billion
The message from economic pundits is loud and clear. In particular, the tourism and construction industry will receive a shot in the arm, thanks to Dubai Expo. The authorities believe, and not without reason, that Expo will boost Dubai’s attractiveness as a prime destination for not only tourists but also expatriate workers. Besides targeting 25 million visits to this global event itself, experts believe Dubai will see around 23 million tourist arrivals by 2025. To put things into perspective, Dubai recorded 16.7 million visits in 2019, so we are talking of an increase of roughly 33% in six years.
This massive, expected inflow of tourists has incited the DTCM (which stands for the Department of Tourism and Commerce Marketing) to prepare a large number of events and attractions that will surely wow visitors and keep their families entertained.
Now, let’s see what the Expo’s impact will be on a couple of important sectors.
Real Estate: Since the announcement of Expo 2020, government-led projects have increased significantly in Dubai. Smart cities, improved infrastructure, and the District Expo 2020 will all transform the real estate sector for the better.
On another hand, property sales and rental prices have already increased in the second half of 2021 and this was mainly due to an rise in demand by residents, investors and short-term visitors.
After this event, real estate prices are expected to stabilize. For this purpose, authorities have come up with a detailed plan. So, even after the hundreds of thousands of tourists have left, the real estate market is likely to continue to grow and be able to avoid market fluctuations.
Investment: Did you know that Dubai has invested 8 billion USD in the 2020 Expo? While this is not a meager sum by any stretch of imagination, when compared to the potential revenues from the event, it does look small. Experts have forecasted that direct revenues from Expo 2020 will easily reach 16 billion USD. Also, by the end of 2031, Dubai Expo 2020 is expected to contribute a whopping 33 billion USD to the UAE’s economy.
Other industries expected to move to the next level thanks to Dubai Expo 2020 include conferences and exhibitions, transportation, communications, storage and of course hospitality.
After Expo 2020 — What to Expect?
The District 2020 (which is also referred as the Expo site) is all set to become an important hot spot for economic growth. Because this region has affordable housing, it will go on to become the nerve center for tourism and exhibitions. The Dubai Expo 2020 will make the city one of the most attractive places to visit and live, boosting the country’s overall attractiveness. So, while the event itself is for just six months, it will continue to have a positive effect on the UAE’s economy for many years to come.