Dubai’s foreign trade to leap to Dh4 trillion by hosting Expo 2020
Dubai’s foreign trade is expected to touch Dh4 trillion by hosting Expo 2020, Mahmoud Al Bastaki, CEO of Dubai Trade, said on day two of the Annual Investment Meeting 2014 in Dubai.
“While all business sectors will be growing drastically from now until the hosting of Expo 2020, trade will get the highest leap among all businesses in the UAE,” he said during plenary session at AIM entitle Expo 2020, unlocking new opportunities for potential partnerships in the UAE and the region.
In 2013, Dubai trade hit Dh1.392 trillion and was the major contributors to Dubai’s GDP with almost 30 per cent of the total.
Ahead of Expo 2020, the government will keep spending on infrastructure, prompting more businesses and investment will come to the UAE. New projects to be developed across all business sectors, and demand on goods will be drastically increase. All these factors will energise the trade market overall, Al Bastaki said.
He also added that Expo 2020 will facilitate economic diversification by finding new paths for economic developments.
“One of these paths is the development of the physical and social infrastructure, innovation centers and partnership projects.”
In line with hosting this big event, the real estate market will witness great developments especially in the area around the Expo site and Dubai World Central.
“This alone will boost most of the relevant sectors including wholesale trade, transport and logistics, communications and business services,”
The development of other manufacturing industries, cement, construction materials will take part in this boost.
Highlighting economic sectors growth and development prior Expo 2020 and how it will go during and after this event, Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation, in line with Expo 2020 opportunities to capitalise on thriving sector.
“In anticipation of the upcoming Expo, Dubai World Central (DWC) has witnessed an increase in land value and development activity which means a potential for attracting new investments,’ Al Zaffin said.
“And over the coming years we expect to see a surge in both commercial and residential investments which definitely will be stimulating the small and medium enterprises (SMEs) as well as services sector,” he added.
During Expo 2020, Al Zaffin portray how DWC will be a unique business and residential community district during expo.
“DWC will include all facilities for businesses, residents and visitors. There will be districts for logistic, business, commercial, residential, exhibitions, hospitality, humanitarian and entertainment.”
All these will be developed by attracted a lot of local and foreign investors, and will be resulting in natural growth of Gross Domestic Production (GDP) during and after Expo 2020, he added.
UAE and Dubai is going to invest heavily on infrastructure ahead of Expo 2020, said Khalid Al Malek, CEO Group of Dubai Properties Group, during the plenary session.
He also expected this to enhance growth in other relative sectors, including real estate and construction.
According to the latest statistic last year, Al Malek said, construction and infrastructure projects announced and underway in the Gulf Cooperation Council (GCC) countries accounts for $1.9 trillion while UAE’s shares accounts for 49 per cent of the overall projects.
“UAE continues to remain the largest projects market, with around $940 billion project that have been under execution,” he added.
Projects in the UAE are dominated by infrastructure and construction, as several large projects that were earlier deferred or delayed have been revived, he said.
Sizeable investment in utilities is taking place as well, given the ambitious long-term growth plans, according to him.
Al Malek described the overall investment climate as a conducive with well established infrastructure and connectivity with the rest of the world. This is one of the advantage that Dubai enjoys to attract investments.
Adding to this, he remarked that significant availability of low cost natural resources, consistent GDP growth and generation of surplus, high positioning in transparency and competitiveness index, re-export hub, developed free zones and strategic location are Dubai’s economic strength, Al Malek said.
- Mandatory health insurance required for Dubai residents
- World Bank offers Jordan $1.4B over six years for Syria response
- Swiss Leaks revisited: Strong Egyptian presence in banking scandal
- Government services increasingly digitized in MENA to collect big data
- Oman’s Duqm tourist complex moves forward with government approval
- Why the GCC countries are serious about economic integration this time around
- Dubai Bank leaps ahead of competition with new IT infrastructure
- DPG’s Corporate Academy hosts Dubai Expo 2020 awareness session
- Behind the numbers: What's really going on in Dubai's $272 billion foreign trade scene?
- Dubai transport and foreign trade