Thursday, April 18, 2019

Expo Dubai boosts UAE economy

Expo Dubai adds 33 billion dollars to the UAE economy until 2031.

The Expo 2020 Dubai is expected to contribute a total value of AED 122.6 billion (US $ 33.4 billion) in the UAE economy between 2013 and 2031, according to an independent study by Ernst & Young, And quoted by news agencies Reuters and Aawsat newspaper

The global exhibition could help Dubai's economy, which grew 1.94 percent in 2018, the weakest pace since the real estate crash in 2009 triggered a debt crisis. The Expo 2020 will allow up to 905,000 and 200 years of work between 2013 and 2031, equivalent to about 49,700 full-time jobs per year during this period, Ernst & Young said in a press release on Monday.

 During its events from October 2020 to April 2021, Expo 2020 is expected to attract about 25 million visits to Dubai and contribute 1.5 per cent of the UAE's expected gross domestic product.

Following the exposition, from May 2021 to December 2031, Expo will contribute 62.2 billion dirhams ($ 16.94 billion) in gross domestic product (GDP) and an average of 53,800 jobs.

According to an executive summary of the study received by Reuters, investment in infrastructure and other assets is expected to reach AED 40.1 billion in preparation for the Dubai Expo.

"This independent report shows that Expo 2020 Dubai is an important and long-term investment in the future of the UAE, contributing more than AED 120 billion to the economy between 2013 and 2031," said Najib Mohammed Al Ali, Executive Director of Expo 2020 Dubai.

"The event will not only encourage millions of people around the world to visit the UAE in 2020, it will also stimulate tourism and travel and support economic diversification for years after Expo, leaving a sustainable economic legacy that will help ensure the UAE remains a leading destination for business, leisure and investment."

Ernst & Young said that the SME sector, which is a central part of the national economy of the UAE, will benefit from AED 4.7 billion of investments being made during the pre-launch phase of Expo 2020. Expo 2020 brings Dubai under its umbrella To 200 participants from countries, companies, multinational organizations and educational institutions.

The study considered direct increases in economic activity, the indirect benefits of increasing demand across the supply chain, and the benefits of increased spending by corporate staff participating in Expo 2020 Dubai, but analysts question whether Expo 2020 will provide sustainable economic growth, Given the current slowdown.

"Our biggest concern for Expo is whether long-term benefits will be realized," said William Jackson, chief emerging market analyst at Capital Economics in London. It depends on whether other companies move to Dubai 2020. " "If this does not happen, it could result in a surplus in Dubai's absorptive capacity," he said. "This may be particularly notable in the hotel industry, where the expected number of visitors is very high ... Surplus capacity may make companies Are having a harder time repaying the debt they borrowed to finance the construction of Expo. "

Dubai's stock index lost more than a quarter of its value in 2018, its worst performance in the Middle East last year amid renewed declines in real estate prices. S & P Ratings said in February last year that after property prices fell between 5 and 10 per cent in 2017, they could fall between 10 and 15 per cent in Dubai over the next two years.

"Expo 2020 Dubai is a long-term investment for the UAE and is expected to have a significant impact on the economy and the process of creating jobs directly and indirectly," said Matthew Benson, partner of Ernst & Young's Transaction Advisory Services. As the host, Dubai aims to take advantage of this international event to further strengthen its reputation and reputation internationally.

The event will celebrate innovation, promote progress and work together, and provide fun and education to a global audience. "

At the heritage stage from May 2021 to December 2031, Expo 2020 will become Dubai after the end of the year to the "Constitution 2020" - the integrated urban community, which is expected to include major companies to establish centers of operations in addition to the expansion of the operations of the Dubai Exhibition Center.

It is planned to support the future vision of the UAE by supporting sustainable economic development, moving towards an innovation-based economy and providing a working environment that will support key growth industries such as logistics and transport, travel and tourism, construction and real estate, and education. More than 80 per cent of Dubai Expo buildings will be retained in the Constitution 2020, which will later expand to a city of more than 4 million square meters.

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