How the Dubai Expo 2020 Is Impacting Local Businesses
Dubai Expo 2020 has officially commence, it has brought glad tidings to the businesses in UAE. The preparations for this grand event are underway in full swing, which itself has turn into a money minting aspect for all UAE-based businesses, whether they are headquarter in Dubai or Ajman Media City Freezone.
However, before moving forward to how it is benefitting businesses, let’s go over some facts about Dubai Expo 2020, to establish its magnificence and importance.
- It will be the first World Expo to be host in the Middle East, Africa and South Asia (MEASA) region.
- There are more than 200 participants including nations, businesses, educational institutions and multilateral organizations.
- 25 million visitors are expected to attend, 70% of whom will be international visitors.
- At its peak, it will generate business that will be equivalent to 1.5 per cent of UAE’s total GDP.
The Dubai Expo 2020 will be attracting industry leaders, pioneers, groundbreakers and the brightest minds from different fields, including IT, Science, Engineering, Finance, Marketing and Sales. Not to forget the hordes of journalists and media personnel who would be flying into Dubai Media City, Ajman Media City and other places for coverage of this global event.
Many of these exceptional individuals might decide to settle in the UAE, even if only for a short while, or to at least transfer their skills to eager learners. This would expand the talent pool for firms to fish for crème da la crème human resource or at the very least, skilled labour. However, this is just one benefit of this colossal event to businesses.
While projections state that the Dubai Expo 2020 will benefit businesses from at all ends of the spectrum, three industries will witness a greater boom.
Tourism and Hospitality Industries
Millions of tourists and representatives from over 190 countries are expect to visit UAE, which means increased revenue for hotels, restaurants, clubs and entertainment venues. In fact, the government predicts that the revenues generate by the travel and tourism sector will almost double from Dhs67bn in 2016, to a whopping Dhs116bn by 2027.
Construction companies and workers will benefit a lot, especially before the World Expo. The government is spending money billions on infrastructure. Large scale construction projects including hotels, malls, sustainable energy projects, roads and railway networks, theme parks, museums, Instagram worthy monuments, and even residential complexes and office buildings are being built, repair or revamp.
The new and improve transportation networks will make commuting easier and less stressful for workers, reduce delivery time, and make the supply chain more effective. Whilst lower transport costs will reduce business and personal expenses.
Increase in office buildings will decrease commercial rents and more sustainable energy options will again bring down the running costs of businesses.
Furthermore, foreign investment would entail the installation of more factories, plants and projects. Thus, there would be more projects for construction companies and labour opportunities, not just in Dubai, but also in other areas of UAE like Al Zorah in Ajman where Ajman Media City Free Zone operates.
Manufacture and Service Industries
Dubai Expo 2020 is a six-month-long opportunity for businesses to promote their products to a wider audience that can help them tap into new markets, and secure Foreign Direct Investment.
Overall, this mega event is expect to generate up to $35billion in revenue and around $150billion in foreign investments, which would not only benefit UAE-based businesses, but also the economy.