Dubai winning Expo 2020 bid to jump-start wave of new development projects and boost economy
Dubai is on the cusp of yet another development boom as it seeks to strengthen its position as the leading business and tourism hub in the region.
A successful bid to host Expo 2020 would mean new people, new visitors and new interest in Dubai, with international coverage and global exposure in what at the very least would be a wonderful PR event for the UAE, and at the very best a springboard to establish Dubai as an internationally-recognised global city.
“Dubai has a leading edge and a compelling reason to be the rightful host of the Expo 2020. It has the right mindset, certified security, incomparable safety and splendid mobility.
The city is ready to welcome the world,” according to a research conducted by Al Masah Capital.
An Al Masah Capital report, published on the eve of the announcement, looked into the potential of a Dubai win, its possible repercussions, as well as the history of the Expo and its profound legacy. In essence, this third-largest global non-commercial event, following only the Olympic Games and the Fifa World Cup in terms of size and significance, is a win-win situation for the emirate.
“With its level of infrastructure and the international branding synonymous with excellence, Dubai will come out on top regardless of the outcome of the bid,” says Shailesh Dash, chief executive of Al Masah Capital.
According to the study, the combined immediate output and historical legacy from the Expo bid will be profoundly positive and will serve as an engine of sustainable growth and progress for not only Dubai but the UAE in general as well as providing an indelible progressive image of the Mena region that is vastly different from general world view and perception.
“When you see the larger picture the very fact that it is on the shortlist has already contributed tangibly to its image and the world now knows that Dubai is a viable place for investment, for work and for any major event to be staged. Our analysis show that the total combined effort will not be in vain,” Dash added.
Detailing the latest investment and development opportunities in Dubai, Meed said the total value to the economy of staging the event has been estimated at Dh143.22 billion. More than 277,000 jobs would be created between 2013 and 2021 as a result, with about 40 per cent in the travel and tourism sector. For every expo employee, about 60 additional jobs would be sustained in the wider economy.
“Meed has organised Destination Dubai to track the exciting new developments happening in Dubai until 2020, a critical case especially in light of its expo bid and just a decade before the governments 2030 vision for the country. We wholeheartedly support Dubai’s Expo 2020 bid and looks forward to working with our friends and partners in Dubai and the UAE to ensure the 2020 Expo will be the best ever,” said Ben Greenish, managing director of Meed.
Dubai’s bid dossier estimates hosting the expo will cost $8.7 billion in total — $7 billion in investments and operating expenses of $1.7 billion. Capital expenditure will mainly cover the development of the expo’s planned 4.4sqkm plot in Jebel Ali and connecting infrastructure such as extending the Dubai Metro’s Red Line.
According to CBRE Global Research and Consulting, the quality of Dubai’s own infrastructure has been extensively highlighted in recent months and has unsurprisingly formed an integral thread throughout the bid message.
“Should the bid be successful, Dubai’s existing facilities would be upgraded and expanded, with the Dubai Metro Purple Line set to be fast-tracked for completion, along with a host of other major projects. This would have a direct and positive impact on UAE’s employment numbers, with additional workforce needed for major construction projects, whilst new companies would also be expected to set up operations to service other related Expo requirements.”
“This would include development of real estate projects around Dubai World Central and expansion of Al Maktoum International Airport itself, accelerating its use as a new passenger hub and acting as a further catalyst to develop the airports transport and cargo infrastructure — a key driver for the emirates long term economic growth,” the CBRE study says.
Furthermore, the importance of the Jebel Ali port will also be increased tremendously; with its strategic proximity to the new airport, the port will act as a key corridor for transfer of goods from sea to the expo site, ultimately enhancing Dubai’s competitiveness as a global trade hub.
“The UAE has always given priority to business, highest standard of quality of services to people and fairness among the people of society. And the UAE is diversifying in the non-oil sectors and Expo 2020 will boost up certain sectors where UAE has already established itself as a leader,” Jitendra Gianchandani, chairman and managing partner of the Jitendra Consulting Group, told Khaleej Times.
“I hope and I think if the UAE hosts Expo 2020, definitely tourism, hospitality, construction, real estate and the retail industry will flourish vigorously. And demand for ancillary services like health and medical, insurance, restaurants and education, to name a few, will also see the boom. Lastly, employment in all the sectors will be generated in multitude like a battalion of ants.”
The CBRE study says a Dubai Expo 2020 vicotry would certainly spur growth across virtually all asset classes, but failure would also be far from disastrous. The Dubai bid has already created global interest and generated positive press locally and internationally for the quality of the submission and for the huge strides that have been taken in the emirate’s recovery since 2008.
However, a negative result could cause a short-term dip in sentiment levels, specifically impacting the residential and land sectors which have both seen strong growth in prices over the last year as expectations levels have built up towards the announcement. It also appears that significant hope value has been placed on the outcome of the decision, with notable growth in strategic areas close to the expo site.
“And not to forget, apart from the economic boom, there are impalpable benefits as proclaimed by the BIE that is to educate the people and bring cultural relations and diplomacy between the host countries and participating countries and UAE with multilingual, multicultural, multinational nation is the right platform to serve the core object of hosting the Expo,” the CBRE report said.
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