Expo 2020 and Its Impact on UAE Industries
Jay Krishnan ,Partner
Expo 2020 is the current buzzword that has been stealing limelight for quite a while. Ever since Dubai was selected as the venue to host the event, the people and media of UAE have been celebrating every minute progress regarding the event. It’s an excellent opportunity for the city to showcase who they are, what they can offer to the world and why they are the best.
Expo 2020 will undoubtedly have a significant impact on the economy of the country, with massive shift expected across almost every business sector in UAE. Right from tourism and hospitality to real estate and construction, the impact of Expo 2020 will be huge and impressive. Let’s have a look at some of the sectors that will witness a massive transformation with Expo 2020 around the corner-
Tourism forms a major part of UAE’s economy and with Expo 2020 a major upgrade to the industry is expected. Approximately 25 million visitors will make it to the expo, with more than 70 percent coming from outside the country.
Along with tourism, hospitality sector will also witness a significant change in its business. Accommodating the large number of visitors is indeed a challenge and to tackle this, up to 45,000 additional hotel rooms will be added to the existing 82,000 room supply.
Numerous hotels are under construction and a total investment of US$7.2 billion is required in hotel capacity by 2020.
Food and beverage
Providing accommodation for visitors is important; equally important is pleasing their palette. It is indeed a unique, one-time opportunity for food businesses in Dubai, to provide service to a large sector of population.
Expo 2020 opens plethora of opportunities for food businesses looking to establish and expand their base in the country, even if it is a small hotel or a food truck. More than 200 Food and Beverage outlets covering an area of 30,000 sqm will be featured at the site and 85,000 meals are expected to be served every hour.
Another industry that is expected to undergo huge transformation during Expo 2020 is cleaning industry. Hotels, exhibition centres, commercial complex, residential and commercial projects will require the facilities of cleaning companies.
Currently, the cleaning and hygiene industry stands at AED 80 billion and this is likely to reach AED 300 billion by the end of 2020.
Again, this is the best time to pitch in if you wish to start or expand your cleaning business in the country. A cleaning license is mandatory if you wish to carry out cleaning business in the country.
UAE’s real estate market has not been all that great in the last couple of years. But, Expo 2020 has led to an increase in the number of businesses in diverse sectors, which has helped boost the real estate sector of the country.
One can expect a thriving and successful UAE real estate market post expo 2020. Investors shouldn’t miss out on this excellent opportunity to set up their real estate business in the city.The construction sector is expected to contribute AED 25.7 Billion, before expo starts.
Up to $17.7 billion revenue will be generated, if the expo turns out to be a success, and it sure will be!
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