Historically, the World Expo has provided its host city with pride and respect and laid the way for great economic growth. It is even more critical for the UAE, as Dubai becomes the first to host such an important international event in the Middle East.
A significant event such as Expo has the opportunity to bring these projects to life and pioneer new initiatives and ideas that educate and drive plans driven by people’s networks as diverse as they are. We can also utilise this chance to learn and share our knowledge from other nations participating in the event. Finally, we can use the functioning of the event to present and exhibit these initiatives in practice.
Dubai’s industry is ready to gain from the significant event with the Expo only a few years away. As a result, the hospitality, retail, transport, banking and immovable sector are likely to increase significantly. In addition, 2017 is projected to be the year in which the preparations for Expo 2020 will gain momentum. Let’s look at all the advantages associated with hosting the event in the real estate industry during the main event.
- Expo 2020 will improve infrastructure and building.
In the run-up to Expo 2020, Dubai may expect sharp growth. The beneficial impacts are already evident as major real estate projects and infrastructure construction are accelerating towards completion. There are other examples of projects such as the Dubai Water Canal, many themed parks and the Future Museum. Earlier this year, Expo 2020 Dubai released plans for the award of AED 11 billion in preparation for the event for 47 building contracts in 2017. In addition to the 1,200 contracts granted in 2016, the economy received around AED 2 billion.
- Dubai attracts international investment.
With real estate development leading to economic growth, the UAE will probably attract more foreign direct investment by 2020. Dubai has already been a famous market to foreign investors, thanks to its excellent reputation as a thriving global hub for business, tourism and retail business, with the USA as a whole as the largest attractive investment country for the MENA region, according to a UN trade body. Given the rise in investment prospects in real estate through Expo 2020, the city is only likely to boost its appeal in the eyes of international investors.
- Increased tourism will increase the hospitality sector.
Dubai expects about 25 million tourists by Expo 2020, with approximately 70 per cent coming from abroad. The six-month event will significantly boost the hospitality sector in the city to cash in substantial earnings. ACCORDING TO A REPORT BY STR, the UAE is responsible for the rise of the hospitality sector in the area, a market research agency. There are roughly 99 hotels under development, the most numerous in the Middle East and Africa region, and supply is likely to expand with Expo 2020 around the corner.
- Creation of new jobs to enhance residential demand
The expansion of Dubai up to Expo 2020 will offer ample employment possibilities because it will be the third-largest worldwide event. The Standard Chartered analysis predicts that around 300,000 new direct employments will be placed in the market by Expo 20201. Therefore, an increase in workforce and job creation will then lead to higher housing demand. A range of economical and premium properties are underway to meet varied needs to sustain the population and market.
- There’s no end – the legacy.
More than 80% of Expo the 2020s 4.38 square kilometer facility will be reused and repurposed following an event, focusing on four “high priority” industries (in particular: education, transport and logistics, travel and tourism as well as property) in the context of the wide-ranging legacy plan4. There will also be residential and retail communities. Cities have grown in the past Expo, and the city’s economy is likely to flourish in all facets and industries as Expo 2020 approaches.
Dubai’s victory in gaining a Dubai Expo 2020 hosting right is likely to increase foreign investment in the UAE across industries, with international companies seeking to leverage this opportunity. With a Dubai government declaration this week that the work will begin on the Dubai Expo 2020 site at the beginning of next year, it is evident that plans are well advanced to commercialize the event.