EXPO 2020 Dubai: Which Sectors Will Receive Economic Boost?
The entire business community is upbeat after hearing the news about some EXPO 2020 pavilions being opened for the public starting from January 2021. The completion of the majority of the pavilions is big news as the mega event is bound to have a positive impact on the dynamics of business setup in Dubai, UAE. Dubai government can also take pride in this achievement as it successfully overcomes the pandemic uncertainties by postponing the event for a year.
The EXPO scheduled to start from 1 October 2021 to 31 March 2022, will bring more investments to boost the UAE economy. Sectors such as real estate, tourism, Food and Beverages etc. will see maximum benefits from the expo, which makes it sensible to initiate company formation in Dubai in these sectors. Now, let’s discuss how prominent business sectors in the UAE will benefit from the event which boasts of participation from more than 190 countries.
Related: 5 Areas Expo 2020 Will Impact On
Sector-wise Breakdown of Likely Investments from EXPO 2020
The EXPO 2020 will have a positive impact on the UAE economy in three phases. The first phase is the pre-expo phase, which starts from the time Dubai won the hosting rights (2013) to the opening date of EXPO 2020 (October 2021). The second phase takes place during the running period of EXPO, i.e. from October 2021 to March 2021.
The third phase can be called the legacy phase, where we get to see how the environment of business setup in Dubai gets boosted in the aftermath of the EXPO. The sector-wise breakdown of the economic impact of EXPO 2020 is based on these three phases, and the sectors are given below.
a) Construction and Real Estate
Real estate sector stands atop the list of EXPO 2020 beneficiaries gaining tangible benefits right from the pre-EXPO phase. The economic impacts will also be felt in the ‘during EXPO’ and the ‘legacy’ period as well. The commencement of EXPO 2020 necessitated a massive expansion in Dubai’s hotel capacity to accommodate the huge number of visitors.
Apart from the hotel construction requirements, a significant volume of residential real estate projects are also undertaken and nearing completion. These projects help in meeting the housing needs of expatriates and labourers who relocate to Dubai before and during the event. International logistics companies and marketing companies drive the demand for office space, which boosts the prospects of the real estate sector.
b) Infrastructure and Transportation
The Dubai government has doled out billions of dollars into developing the infrastructure facilities at the EXPO 2020 site. At the heart of the infrastructure development is the expansion of Al Maktoum International Airport that will become the world’s largest airport once completed. Other government-led infrastructure development projects include the expansion of Jebel Ali Port and the Dubai Metro Red line connecting the city centre to the Expo 2020 site.
The development of Mohammed Bin Rashid City is a major infrastructure development project which includes the world’s largest shopping mall, more than 100 hotels, a Universal Studios franchise, and a large public park. Aspiring entrepreneurs who plan to leverage the infrastructure benefits can consult with the best business setup consultants in Dubai for easy company incorporation.
c) Hospitality & Tourism Sector
Since the EXPO 2020 will receive an estimated 20 million visitors (around 70% of them are likely from abroad), Dubai’s tourism and hospitality sector will get a shot in the arm. Dubai’s tourism sector has been hit by the travel restrictions and lockdowns implemented by various countries in the wake of COVID-19 pandemic. However, the UAE government’s proactive steps in containing the pandemic helped the sector to avoid big damages.
In view of the EXPO 2020, the UAE government has mounted a huge COVID-19 vaccination drive which made 14% of the population inoculated. The safety net provided by the vaccination campaign has reinstated the faith of tourists in Dubai, which will surely reflect in the number of EXPO visitors. As per a Deloitte report, there is a requirement of an additional 50,000 hotel rooms in over 200 properties. This demand is spread across all categories from budget through to luxury, which may also create more jobs in the sector.
d) Food and Beverages Sector
The Food and Beverages sector has taken everyone by surprise by effectively weathering the pandemic uncertainties. A surprising number of food entrepreneurs initiated company formation in Dubai in 2020 to take advantage of the opportunities arising from the expo. Quoting a Dubai Municipality data, Khaleej Times reports that 1,303 new food establishments were set up in Dubai in 2020.
This data indicates that new food businesses were established in Dubai at a rate of 3.5 outlets per day. It also says the total number of food businesses setup in Dubai will reach 20,000 before October 2021. Setting up a restaurant in Dubai seems to be more profitable in this highly conducive business environment. Business setup consultants in Dubai advice foreign investors to tap the opportunities available in the F&B sector in the wake of EXPO 2020.
Leverage the Benefits with the Help of Business Setup Consultants in Dubai
Dubai Expo 2020 is expected to impact the non-oil based economy of Dubai and the UAE in general as significant foreign investment is likely to pour in. Although the exact impact is hard to predict, sectors such as real estate, infrastructure, food and beverage, tourism etc. are the most likely beneficiaries. Investors planning to initiate business setup in Dubai with these sectors in mind can enjoy the economic benefits generated by EXPO 2020. However, company formation in Dubai is not an easy process since a mix of easy and complex procedures are involved.
Foreign investors require the bespoke assistance of the best business setup consultants in Dubai to navigate the complex procedures. Robust advice on the process of business set up in Dubai would come handy for aspiring entrepreneurs while making strategic decisions like whether to choose mainland or free zone to open a company. Jitendra Business Consultants (JBC) is the best in the industry when it comes to providing actionable insights into the procedures of business setup in Dubai. JBC’s highly qualified consultants assist the foreign investor in getting a business license, drafting the documents, processing visas, opening of corporate bank account etc.