Expo 2020 is a global exposition for millions of people to share ideas and encourage collaboration. This time it is going to be organized in Dubai and we are estimating that it will increase the economic growth in UAE.
It is expected that more than 120 countries, and 200 participants, including multilateral organizations and educational institutions, will be participating in Dubai EXPO 2020 event. This will be a giant event and a lot of money will be invested to make this event grand. Tile date, 1,964 contracts worth AED 5.3 billion (USD 1.4 billion) have been awarded and contracts worth AED 11.5 billion (USD 3.1 billion) will be awarded in next 12 months in many different sectors.
It is expected that Dubai EXPO 2020 will attract more than 25 million visitors and 70% being from 180 different countries. This mass event will create more than 300,000 new jobs and will lead to increased employment opportunities in Dubai between now and 2021. This event will be the first world EXPO in MENASA (Middle East, Africa, South Asia) region. This will be a major achievement as this is the first time an event so big is going to be organized in UAE. This major event will leave a significant impact on Dubai’s economy as it will have a long-term economic growth in Dubai and UAE. EXPO 2020 will be the third largest global event after Olympic games and FIFA world cup.
Economic Growth in UAE
Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said recently that the outlook for the economy is brightening despite regional and global macroeconomic challenges.
“With two years into Expo 2020 Dubai, the economic growth momentum is expected to pick up on the back of a vibrant non-oil sector as the country remains on track to establish a diverse knowledge- and innovation-driven economy,” Al Mansouri said.
The rising prices of oil, improved macroeconomic outlook for country’s key trading partners, and increased government spending will benefit UAE’s trade this year. Dubai’s economy is expected to enjoy a strong year, as the government boosts investment ahead of Expo 2020 and the stream of incoming tourists flourishes.
“Although oil prices have impacted the GCC’s economies over the last year, the UAE’s push for diversification is bearing fruit. As we get closer to Expo 2020, we will see an increasing number of contracts being awarded in preparation, which in turn, increases opportunities for businesses,” said Sunil Veetil, Regional Head of Global Trade and Receivables Finance for HSBC Menat (Middle East, North Africa, and Turkey).
An event so big is likely to attract to attract a lot of foreign investment. EXPO 2020 will most probably attract around $100 to $150 billion international investment in different sectors such as real estate, hospitality, retail, and education.
The sector which will be highly benefited by this event is tourism sector. It will boost the performance of hospitality sector in Dubai and all the new construction which is being done for the EXPO 2020 will further attract tourists for a long term.