Business & Economy

Economic Impact of Dubai EXPO 2020 Event

Recently, the organizers of the EXPO 2020 event opened up the Thematic Pavilion inclusive of public places (dining area, gift shop & play area) before its official date in October 2021 while the Sustainability Pavilion which focuses on addressing the immediate environmental issues will be opened soon.

In line with EXPO 2020 vision to become one of the most sustainable World EXPO in history, UAE is focusing its efforts to Champion the Green development, which will be on preview at the Sustainability Pavilion with the objective finding solutions to most pressing environmental challenges such as climate change, education, digitalization and healthcare.

An Overview of EXPO 2020

The EXPO event aims to enable a meaningful, long-term business and economic growth in the MENA (Middle East & North Africa) region by offering a world of connections, inspiring multi-cultural exchanges and business partnerships that will help reinvigorate the economy of the UAE and the Gulf region. The mega event will make use of purpose-built 4.38 Sq Km. site and utilize cutting-edge smart-city technology such as ultra-fast 5G connectivity, robotics and next-generation urban environment transportation services. Coinciding with the 50th anniversary of the formation of UAE, Expo 2020 will continue to project the ambitious vision of the UAE, showcasing Dubai as a world’s leading city of the future.

Impact of Dubai EXPO 2020 on UAE Economy

Thanks to the various initiatives undertaken by the UAE government, the country’s economy is on a road to recovery from the COVID-19 outbreak. The upcoming EXPO 2020 is expected to further boost the current economic conditions, bringing it back on track to reach its long-term goals. International Monetary Funds (IMF) estimates that UAE GDP (Gross Domestic Product) will see an overall growth of 1.3% in 2021 and 2.2% during the year 2022. As other regional economies in the MENA region continue to struggle, UAE still remains an attractive place to invest. The country has not only opened borders for business and leisure but have also played a critical role in becoming a transit hub for travellers, placing it ahead of other countries globally. As a result, the UAE economy is expected to recover this year and the economic activity will gradually pick up especially during the second half of the year when the EXPO 2021 event will be held. 

Key Emerging Sectors – UAE

Some of the major sectors that will see an increase in business opportunities during 2021-22 are e-Commerce, Energy, Food & Beverage (F&B), Healthcare, Innovation, IT, Manufacturing and Retail. Similarly, the emerging sectors such as Communication Networks, Artificial Intelligence (Ai), Blockchain, 3D Printing and Machine-to-Machine Communication is expected to see an increase in Foreign Direct Investment (FDI) in Dubai and UAE.

UAE is considered to be a leading global destination for FDI recording an exceptional year-to-year growth of 32%, with an estimated investment of AED 51.5 billion (USD 14 billion) for the year 2020. While attracting the FDIs to UAE, the government is also supporting the business activities of the SMEs (Small & Medium Size Entreprises). Going forward, UAE will focus on enhancing opportunities for advanced industries and critical sectors thereby showing its commitment towards creating an economic environment which is conducive for businesses and investments. 

Please do not hesitate to reach out to Research Konnection, a Leading Market Research Company in Dubai if you like to know more about the investment opportunities in UAE. 

Research Konnection assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. It is one of the best rated market research companies in Dubai specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us on hello@researchkonnection.com…

Global Center for Advanced Technology Research unveiled in Abu Dhabi – UAE

Abu Dhabi has unveiled the Technology Innovation Institute (TII) the dedicated applied research pillar of the Advanced Technology Research Council (ATRC) as a part of reinforcing Abu Dhabi and the UAE’s position as a global hub for innovation and advanced technologies.

The aim of the institute is to deliver discovery science and technology that have a global impact. The institute has seven initial dedicated research centers which focus on Quantum Research, Autonomous Robotics, Cryptography, Digital Security, Advanced Materials, Directed Energy and Secure Systems.

Teams of international researchers and scientists from around the world have joined the institute to help build a research and development ecosystem in Abu Dhabi and Dubai.

The Institute is already working on more than 25 long term collaborative projects through partnerships with more than 20 world leading Universities.

TII is one of the two pillars under ARTC. The aim of ARTC is to cultivate a collaborative research community, accelerating innovation and discovery. TII allows the UAE to push the frontiers of knowledge further and positively impacting the local economy, society and the environment. Contact Market research companies in UAE to know more about the 

Research Konnection assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. It is one of the best rated market research companies in Dubai specializing in Market Research, Market Entry & Feasibility Studies. Feel free to reach out to us on hello@researchkonnection.com…

Nasdaq Dubai Growth Market to Support UAE SMEs

Small & Medium Enterprises (SMEs) account for approximately 90% of the business in Dubai. They contribute to nearly 50% of Dubai’s Gross Domestic Product (GDP) and account for 52% of the total workforce in the Emirate. The Covid-19 pandemic has resulted in an economic slowdown impacting local SMEs. In order to support these SMEs, the government has launched several measures to help them deal with the financial fallout. One such measure is the initiation of Nasdaq Dubai Growth Market.

Nasdaq Dubai Growth Market to Support the SMEs

H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has launched the Nasdaq Dubai Growth Market which will help the SMEs by raising capital through Initial Public Offerings (IPOs) for their future expansions. The initiative falls under the Dubai Future District that focuses on leading the MENA (Middle East & Africa) region and creating a future economy by providing investment, technical, legislative, service and incentive-driven environment.

The Nasdaq Dubai Growth Market will provide a platform to innovative and fast-growing SMEs to list their business on the region’s international exchange creating an environment where businesses can prosper through forming partnerships. This will not only provide business opportunities for the SMEs within the UAE, but also for the international companies that are looking to expand in the region. As a consequence, Dubai is expected to see a boost in the economy thereby stimulating the growth across various sectors through this initiative.

The Nasdaq Dubai Growth Market

The Growth Market will play a critical role in the future by financing innovative businesses to accelerate their growth and create new markets for their products/services. The launch of this initiative will strengthen Dubai’s position as a regional leader in innovation across industries.

The Nasdaq Dubai Growth Market will allow SMEs that are valued below AED 920 million (USD 250 million) to list their business. One precondition is that business should be in operation for 1-3 years before it is listed on the platform. The Growth Market will allow owners of the business to handle the IPO and they can sell as little as 25% of the company shares providing them with control over their business operations. Several companies have already listed themselves in the Nasdaq Dubai Growth Market. They are expected to be launched in 2021.

Impact on Future Dubai & UAE Economy

The Nasdaq Dubai Growth Market will have a significant impact on the SMEs that are looking to expand their business. The Growth Market will also contribute to the UAE’s vision to achieve zero contribution of oil in its GDP over the course of next 50 years. It will also help UAE in strengthening its position as a regional leader in Innovation, Finance, Logistics, Infrastructure and Business Services.

Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on hello@researchkonnection.com…

Dubai to build Commercity to promote e-Commerce Industry   Dubai – The government of Dubai has announced to build the first of its kind free trade zone dedicated for the e-Commerce industry in the region ‘Dubai Commercity’, located close to Dubai International Airport. The estimated value for the project is around AED 3.2 billion ($870 million) and covers an area of 2.1 million Sq.ft. The ‘Dubai Commercity’ aims to promote investment in the e-Commerce Industry by providing numerous benefits and exemptions to the e-Commerce players. e-Commerce Industry – UAE Driven by the strong growth in online shoppers, the UAE’s e-Commerce Industry leads the Gulf region with an estimated value of Dh 59 billion ($16 billion) in 2019 and CAGR of 13 per cent between the next few years. However, due to the COVID-19 pandemic which has influenced the online shopping behavior, the e-Commerce growth rate is likely to increase significantly as more number of consumers opt to buy products and services online.  e-Commerce Industry Growth – UAE The young Internet-savvy population with high social media usage, high disposable income and the growth in Dubai’s mobile wallet market are among the key contributing factors towards the growth of the e-Commerce marketplace in the country. As of 2019 and before the COVID-19 pandemic, 62 per cent of UAE residents were actively engaged in online shopping while e-Commerce sales constituted 10 per cent of total sales in UAE.  Furthermore, the Dubai government has introduced several strategies to attract foreign investors in the e-Commerce Industry. One of such Strategies is the announcement of Dubai Commercity, a dedicated free-zone for the e-commerce Industry. Dubai Commercity The Dubai Commercity is considered to be the first of its kind in the region. The site is a joint venture between Dubai Airport Freezone Authority (DAFZA) and Al Wasl Properties. The Dubai Commercity will have three major clusters namely; Business, Logistics and Social Cluster.  The Business cluster will accommodate 12 office buildings that promise modern facilities and sustainable design for companies of varying size while the Logistics cluster will consist of heavily automated AI (Artificial Intelligence) warehouses and storage facilities. The Social cluster will consist of restaurants and cafes. The e-Commerce businesses that will be registered with the free-zone will benefit from “one-stop shop” services inclusive of immigration, administration, banking and healthcare. The facilities are expected to be operational in November 2020, while the project will be fully functional by the end of 2023. Dubai Commercity – Future Potential The developers mentioned that the situation arising from the COVID-19 has been one of the major factors that has led to the conceptualization of Commercity in Dubai. The on-going Coronavirus pandemic is expected to further fuel the growth of the industry and the investment in the e-Commerce industry will pay off as the Dubai and UAE market is set for explosive growth amid rapidly changing online consumer buying landscape.  Read: UAE Economic Strategy & Response Plan 2020 (COVID-19) Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on hello@researchkonnection.com…

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