EXPO 2020 WILL CONTINUE TO FUEL ECONOMIC GROWTH IN DUBAI
- September 14, 2015
- Posted by: RKonnect
- Category: Business & Economy
Amid rising concerns among investors on future of Dubai, albeit fluctuation in oil prices, the outlook for Dubai’s economy remains positive as the Emirate gears itself for what is expected to be the flagship event of decade, the World Expo 2020. Hosted for the first time in the MENA region, the event will mark a milestone in Dubai’s history by attracting 25 Million Visitors from all across the globe. The preparation for such mega event is in full swing as Dubai has seen tremendous amount of progress in terms of infrastructure and developmental work ever since the Emirate was given the nod to host the iconic mega-event.
The report highlights the development in EXPO 2020 related activities as Dubai prepares itself for the biggest event in the 187-year EXPO history as a result of which Dubai is bound to boost on socio-economic forefront.
Progress on EXPO 2020 Site
An estimated AED 30 Billon ($8.17 Billion) worth of developmental works is underway on the EXPO 2020 site. Parsons Consultancy is primarily responsible for designing, monitoring and delivering of all infrastructure works for the site including various pavilions. All major construction activities are expected to be completed by October 2019.
The announcement to link Dubai Metro to the EXPO 2020 site is another tactical move by Dubai Government to enhance a world-class infrastructure and services. The 15 KM Dubai Metro extension named “Route 2020” is estimated to ferry 75,000 visitors per day to the EXPO 2020 venue.
Increase in Cargo Activity – Al Maktoum Intl Airport
In line with the massive development activities on EXPO 2020 site, Al-Maktoum International Airport has seen an increase in the cargo activity, with numbers reaching 443,012 Ton in the first half of 2015, an increase by 42% from previous year. This has enabled the airport to from 20th position to 19th in terms of Top Cargo Airports.
Development Works in Dubai Land & Dubai South
Infrastructural development has been on the rise since the announcement of Expo 2020 in areas and communities near to the EXPO 2020 site which includes Dubai Land and Dubai South. In anticipation of the EXPO 2020 event, Dubai Investments Park (DIP) attracted 436 new companies in the first five months of 2015, bringing the total number of companies to nearly 4500. DIP is a mixed-use master community offering a mix of residential, commercial and industrial zones located within close proximity of the Expo 2020 site. DIP facilitates the logistical movements of goods from Jebel Ali Port allowing easier warehousing and distribution from the area.
Hospitality Sector – 96 New Hotels Planned
Hospitality Industry is also flourishing as a result of EXPO 2020 as by 2020 near around 35,000 rooms will be added to current stock of 65,000 rooms, as a result of 96 new hotel projects that have commenced in Dubai. By 2020, Dubai will have more than 100,000 hotel rooms. More number of new hotels is expected to open in Dubai South and Dubai Land (near to EXPO 2020 site), which includes famous hotel brands such as Hilton, Holiday Inn, Studio M and Millennium. It can be said that Dubai leads the Middle East and African region in terms of new hotel developments and events like EXPO 2020 will further boost the performance of the hospitality sector in Dubai.
Economic Impact of EXPO 2020 on Dubai
According to research findings, EXPO 2020 has opened doors for Foreign Direct Investment (FDI) in Dubai attracting AED 28.6 Billion ($7.79 Billion) worth of FDI primarily in the infrastructure development initiatives and services industry in 2014. Regardless of global oil crisis, EXPO 2020 will lead to increased employment opportunities in Dubai with over 275,000 jobs created between now and 2021 that will impact the economy by approximately AED 71.9 Billion (USD 19.6 Billion). Most of these jobs will create demand for white-collar professionals. Experts suggest that each job in turn will support 60 additional jobs for the region.
The EXPO 2020 will also be a blessing in disguise for Dubai allowing it to benefit from its unique geographical position apart from cross-linking it to emerging markets in Asia and Africa with developed one in the Europe. Additionally, with the growth in local and tourist population, coupled with the progress on EXPO 2020 event, Dubai provides massive investment opportunities in various sectors of the economy which includes Education, Real Estate, Retail, Hospitality and Logistics especially in Dubai Land and Dubai South which are the newest mixed-use real estate developments.
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