EXPO SET TO GIVE DH123B BOOST TO UAE ECONOMY
dubai – Dubai Expo 2020 and its legacy will add around Dh122.6 billion ($33.4 billion) to the UAE’s economy and create approximately 50,000 fulltime jobs per annum during 2013 to 2031, according to a report released by Ernst & Young on Monday.
‘The economic impact of Expo 2020 Dubai’ estimated that the six-month long mega event will add 0.47 per cent to UAE’s total GDP and 0.8 per cent to the country’s annual employment during 2013-31 period.
It was estimated that the activity will peak during the 6-month Expo and the impact is expected to be equivalent to 1.5 per cent of UAE’s annual GDP.
The Expo will run from October
2020 to April 2021, attracting 25 million visitors and participation of 190 countries.
Matthew Benson, partner, transaction advisory services, Mena, EY, stated that the UAE will benefit from improved international
profile and reputation from the Expo, which is being held for the first time in the Middle East, Africa and South Asia.
dubai — Expo 2020 Dubai and its legacy will contribute Dh122.6 billion in gross value to the UAE’s economy during the period between 2013 and 2031, according to a study conducted by EY.
It is estimated that the event will support 0.47 per cent of the UAE’s GDP and 0.8 per cent of the UAE’s employment during the period. While at its peak level of activity — when the six-month long event begins — the impact is expected to be equivalent to 1.5 per cent of the country’s GDP.
The mega event is expected to support 905,200 full-time equivalent (FTE) job-years, which amounts to 49,700 full-time jobs per annum during 2013 to 2031. Key sectors that will be impacted by Expo 2020 are events management, services, construction, transport, storage, communication, retail, hotels, food and beverages, said ‘The Economic Impact of Expo
2020 Dubai’ report, released on Monday.
The report further added that around Dh53.5 billion will be a direct contribution to the UAE’s economy, while Dh42.3 billion will be an indirect contribution, and Dh26.8 billion will be the contribution from induced spending.
The top three sectors that will be most impacted are events organisation and business services, which will see Dh68.9 billion in spending; followed by construction at Dh27 billion; and restaurants and hotels at Dh11.4 billion.
The study estimated that around Dh37.7 billion is likely to be contributed in the pre-Expo period of 2013 to 2020, while a Dh22.7 billion contribution will come
Najeeb Mohammed Al Ali, Executive director of the Dubai Expo 2020 Bureau
Matthew Benson, Partner, Transaction Advisory Services, Mena, EY
56%
Of all Expo 2020 contracts have been awarded to SMEs
during the six-month long Expo 2020 period. This contribution will mainly come through ticket purchases, infrastructure maintenance, and F&B spending by visitors. It is estimated that around 25 million visitors will visit the Expo 2020.
During the ‘Legacy Phase’, the Expo 2020 site — District 2020 — will contribute Dh62.2 billion to UAE’s economy, mainly through on-site investments, operational costs, offsite investments, maintenance and employment. It was estimated that small and mediumsized enterprises (SMEs) would receive Dh4.7 billion in investment during the pre-Expo phase, supporting approximately 12,600 jobyears. Around 56 per cent of all Expo 2020 contracts have been awarded to SMEs.
Matthew Benson, partner, Transaction Advisory Services, Mena, EY, said that District 2020, which is part of the legacy of Expo, will be fully occupied by 2030. Over 80 per cent of the site is expected to be re-used or re-purposed in the legacy phase.
“Once District 2020 is established, then the economic im pacts will be long term,” he said. “Expo 2020 is expected to have a significant impact on the economy and how jobs are created directly and indirectly. As the host, Dubai aims to use the event to further enhance its international profile and reputation. The event will celebrate innovation, promote progress and foster cooperation, and entertain and educate global audiences.”
Najeeb Mohammed Al Ali, executive director of the Dubai Expo 2020 Bureau, noted that the Expo 2020 Dubai is a critical long-term investment in the future of the UAE, which will contribute more than Dh120 billion to the economy between 2013 and 2031. “Expo 2020 will also stimulate travel and tourism and support economic diversification for years after the Expo. It will leave a sustainable economic legacy that will help to ensure that the UAE remains a leading destination for business, leisure and investment,” he said.
According to officials at Expo 2020, construction is well advanced on all areas of the site and all building work continues on track. In the first-half of 2019, at the peak of construction, about 40,000 workers — both manual and non-manual — are working on the site.
Atik Munshi, senior partner, Crowe Mak, said that the impact of Expo 2020 has already been initiated with the help of the ongoing infrastructure. “The UAE and the rest of the world is eyeing Expo 2020 and expect it to be a game changer, not only for the year 2020, but much beyond. With the Expo 2020, the UAE economy is expected to see a positive growth particularly in the areas of construction, tourism, hospitality and retail,” said Munshi.
Since the Dubai government is planning to utilise the Expo 2020 site post the event as an exhibition destination, this will create a new hub in Dubai, he added.