After the pandemic-driven slowdown in global travel, trade, and tourism, the UAE economy is set for faster growth. The UAE policymakers spent billions of dirhams to stage the Expo 2020 during tough times, which is an achievement. Now, the UAE has taken the global center stage, and no doubt the Expo will raise the profile of the Emirates country.
The Dubai Expo 2020 has already contributed to the progress of business conditions in the UAE. Now, the relaxation of travel restrictions is encouraging a recovery in the hospitality and travel sector. Since the UAE wants to celebrate the 50th anniversary of its formation as a federation in front of the world, the government’s ambitious targets, aspirational strategic goals for the economy, and Vision 2021 plan have moved closer to fruition.
The policymakers expect that Dubai Expo 2020 will yield an AED 122 billion investment windfall for the UAE. Expo intends to bring new businesses, create jobs across the region, grow GDP, and support a sustainable, flexible, and diversified economy.
Attracts more foreign investments
Dubai Expo is a long-term investment to boost the federation’s economy and support jobs until 2031. The planning had started when Dubai won the bid to host the Expo in 2013. Since it is happening amid the coronavirus pandemic, it can be considered the most significant global gathering since 2019. It’s an achievement of innovation and the power of human collaboration where opportunity, mobility, and sustainability are getting celebrated.
The Expo is expected to bring nearly $150 billion in Foreign Direct Investment (FDI) across sectors such as tourism, hospitality, construction, real estate and infrastructure, and financial services. As the focus moves towards sustainability, more foreign investments in renewable and sustainable energy are expected to promote green growth.
Despite the adverse effects of the pandemic, Dubai and UAE maintained high investor confidence in 2020, with total estimated FDI capital flows reaching Dhs24.7 billion. Hence, entrepreneurs and business owners are keen to take advantage of the greener landscape, and it is more likely to see UAE as a natural place to seek investment for green innovation technology.
Increase in the talent pool and jobs
Due to the enhanced economic activity throughout the UAE is expected to attract an entirely new talent pool and create nearly 300,000 new jobs in Dubai itself. Some predict that the Expo will have a significant impact, with 60 jobs being generated across the MENA region for every job created in the UAE. According to an estimate, approximately 49,700 full-time-equivalent (FTE) jobs per annum are generated.
New business opportunities
The Expo has opened doors for several new business opportunities for big and small enterprises, and it will continue till the Expo is over and beyond. Since the authorities are relentlessly offering support to Small and Medium Enterprises (SMEs) to encourage the growth of entrepreneurs, more business opportunities are awaited.
Over the last few years, the UAE government has backed the initiatives to benefit SME owners and entrepreneurs to use the city as a ‘testbed for creating solutions to the global challenges of tomorrow. Hence, the UAE ranks 16th in its 2020 ease of doing business ranking. The influx of investments due to the Expo can only enhance the opportunities further and pay off for the growth of the country’s economy.
How could this benefit the UAE economy?
Expo will accelerate the authority’s efforts to diversify its economy, support smart connectivity, and stimulate cultural and creative life. Even though the government is not looking for inward investment, foreign investments will have a more significant impact on the economic boost of the region. It will influence the entire business ecosystem and economy, which means both local and international ventures will boost activity and business.
International investors have long been attracted to UAE since it represents an increasingly favorable destination for FDI. After UAE changed its investment laws in 2018, the foreign investors see it as an ideal access point into regional markets. As the UAE is the gateway between east and west, it connects two-thirds of the world’s population for investors. This further enhances the UAE’s reputation as a global platform for investment and trade.
