The Celebratory Economic Impact of Dubai Expo 2020

The World Expo is the world’s third largest event after the Olympics and the FIFA World Cup in terms of cultural and economic impact. World Expos tend to have an enduring long-term impact on the host city. It will be interesting to explore what changes Expo 2020 will usher in for Dubai - a city that already has change in its DNA, altering itself almost unrecognizably every few years ! Meanwhile, even as the city gears up to celebrate human culture and progress over six exciting months, Dubai Expo 2020’s impact on the economy is no less celebratory already!

Dubai Expo 2020: Impact on the economy

Infrastructure : The Expo host city typically invests heavily on infrastructure. Shanghai, which hosted Expo 2010, invested about $40 billion on six additional metro lines, roads, tunnels, bridges, and bolt rail, among other projects. Dubai Expo 2020 is expected to have the same impact in terms of infrastructure. It is believed that over $ 8 bn has been invested on infrastructure around the Expo 2020 establishment, including the 480-hectare space with its own state of the art setup.

Real estate: Construction in Dubai over the last two years has continued to grow thanks to both to Expo 2020 and the various government-led projects all over Dubai. According to the Dubai Chamber of Commerce and Industry, around 42% of ongoing projects in the UAE are in Dubai. The city has seen a growth in investment in new infrastructure during the time leading up to Expo and as Gulf News reports, the rentals are expected to fall during Expo 2020 and all the way into 2021 as new projects increase.

Off-plan projects will continue to attract buyers and investors as payment plans become easier. Dubai property prices after Expo 2020 are expected to stabilize as potential short-term visitors for the event can turn into residents in the long run.

Dubai is already making its legacy plans to ensure that the property market grows and there are no market fluctuations after Expo visitors leave the country.

Employment: An event of this scale and magnitude generates massive employment opportunities. MEED Reports anticipates 277,000 jobs opening in the making of Expo 2020. 60% of these are in the construction sector and 40% in tourism, travel and leisure.

Tourism: Over 25 million visitors are expected for Expo 2020. The corresponding arrangements are part of Tourism Vision 2020 and include a massive ramp up in capacity. By the time the event starts, up to 100,000 new hotel rooms will be ready, several of them in new luxury hotels. The Department of Tourism and Commerce Marketing (DTCM) will be putting on several attractions to further boost tourism.

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(Data and inputs courtesy Gulf News , Property Finder, MEED)