World EXPO 2020 to boost Dubai Economy, Hospitality & Tourism SectorsEarlier this week, H.H. Sheikh Mohammed, the Vice President & Prime Minister of UAE and the Ruler of Dubai, conducted a helicopter tour of EXPO 2020 Dubai site and other major constructions. He was pleased to see the progress made and by the RTA to construct the Metro link to a new station on EXPO 2020 site – Route 2020. Furthermore, H.H. Sheikh Mohammed was briefed on the progress made in several areas relative to EXPO 2020 event which includes real estate, business development and integration, international participants, integration and youth connect by the department heads.
EXPO 2020 Dubai – Key HighlightsMore than 120 countries, and 200 participants, including multilateral organisations and educational institutions, are expected to participate in EXPO 2020 event. Till 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. EXPO 2020 Dubai is expected to attract more than 25 million visitors (70% international tourists) from 180 different countries and in the process, create more than 300,000 new jobs. The event will be a major achievement for the MENASA (Middle East, Africa & South Asia) as it will be the first world EXPO in the region. The Dubai economy and its major sectors will be significantly boosted by EXPO 2020, as Dubai and UAE remain attractive for long-term investments.
EXPO 2020 Impact on Dubai EconomyThe impact of EXPO 2020 on Dubai’s economy will be significant as it will have a long-term effect on the economic growth of Dubai and UAE. Being considered as the third-largest global event in terms of economic and cultural impact after Olympic Games and FIFA World Cup, EXPO 2020 is expected to attract more than 25 million visitors from October 2020 to April 2021 in Dubai.
Economic Benefits of EXPO 2020
- Investments – EXPO 2020 is likely to attract foreign investments between $100 to $150 billion in Dubai and UAE across various sectors of the economy such as real estate, hospitality, retail and education. Subsequently, investments are made in sectors such as healthcare, IT and (e-Commerce).
- Economic Growth – EXPO 2020 will ensure continuity of business activities in Dubai as the GDP will grow at 4 per cent (CAGR) between 2016 to 2020.
- Economic Diversification – Dubai is considered as the Most Diversified Economy (MDE) in the world as its GDP is based on various sectors. EXPO 2020 will further facilitate economic diversification plans by diversifying in new sectors and emerging sectors (i.e. Medical Tourism, Innovation, Sustainable Energy, Media).
- Job Creation –EXPO 2020 will lead to increased employment opportunities in Dubai by creating approximately 275,000 new jobs between now and 2021.
- Tourism – Dubai enjoys high occupancy rates (approx. 80%) and tourist growth (approx. 10-15% y-o-y basis) across in MENA region. The Emirates focuses on Meetings, Incentives, Conferences & Events (MICE events) and leisure activities to increase tourism. Revising visa policies has also attracted tourists to Dubai. Events like EXPO 2020 will further boost the performance of the hospitality sector in Dubai.
- Major Attractions – Beside Burj Khalifa and Palm Jumeirah, opening of attractions such as City Walk, Dubai Opera, Dubai Water Canal, IMG Worlds of Adventure (the world’s largest indoor theme park) and Dubai Parks & Resorts (largest integrated theme park resort in the region) have contributed to rising leisure tourism in Dubai.
- Upcoming Major Attractions – Dubai Safari Park, Dubai Creek, Dubai Eye and Dubai Harbour project will further boost the tourism and hospitality sectors of Dubai.