Expo 2020 already boosting Dubai economy
Widespread economic growth is set to lift Dubai’s level of FDI by between 10-15%
A foreign district investment (FDI) rise of up to 15% is one of many positive economic indicators seen in Dubai ahead of the World Expo 2020 event, according to property investment firm, Select Property.
Widespread economic growth is set to boost Dubai’s level of FDI by between 10-15%, a government official told the company.
Fahad Al Gergawi, chief executive of Dubai FDI, the foreign investment office in the Emirate’s Department of Economic Development (DED), said: “The focus on growth [is] coming with mega projects that have been announced by the government.”
Since Dubai won the bid to host World Expo 2020, a six-month event that is expected to attract 25mn visitors, all investment levels have increased. Buyers have been purchasing property in Dubai, while the government has unveiled projects such as the Mall of the World and three new theme parks.
In total, projects and property investment prior to the event is set to be worth $30bn, while in 2014 alone, the UAE government has earmarked $1.73bn for new infrastructure builds – a 13% year-on-year rise.
It is believed that Dubai’s foreign trade is likely to touch AED4tr ($1.08tr) by hosting the event, with the Business Year: Dubai 2014 report finding the Expo could “open up investment opportunities for domestic and foreign firms alike”.
Signs of growth are widespread. Private consumption is expected to rise at an average rate of 7.8% for the next 12 months, while retail sales in the Emirate are likely to grow by 32.9% to $41.1bn during the same period.
Dubai’s economy has already received a boost from the investment surrounding the bid. GDP increased by 4.6% in 2013 and the DED expects that to rise to 4.7% in 2014.