Impact of World Expo 2020 on the Finance Industry in the UAE
The World Expo 2020, which will be held in Dubai will be the first World Expo which will be held in the Middle East and North Africa (MENA) region. This event will be held for six months and will likely attract entrepreneurs and people in business from all over the world. The expo will showcase the advancements in technology and infrastructure and the giant leap which the technology has made, which will make the lives of people better.
The authority which sanctions the World Expo is the Bureau of International Expositions, and the expo is held every five years. The current Expo to be held in Dubai is one of the most significant events which is likely to bring in a lot of Foreign Direct Investments (FDIs). In the long run, there will be positive effects on the economy of the United Arab Emirates.
Impact of the World Expo 2020
The World Expo 2020 is assumed to make significant contributions to the economy of Dubai and the country as a whole. Most of the effect of this Expo will be seen on the non-oil based industries such as Construction, Logistics, Travel and Tourism, Healthcare and various other industries. To get ready for the expo, the country has started taking measures a long time before so that when the time comes, the country is fully prepared for the event.
The analysts predict that the World Expo 2020 will provide a boost of almost $33 billion in the long run. Not only will it act as a revenue source, but it will also create substantial employment opportunities both for the situation at that time and also for the long run. The expo will also help in the increase in the reputation of the United Arab Emirates in the world.
Directly or indirectly, there will be a massive impact on the financial aspect of the country. There will be a considerable increase in the businesses coming into the country which will not only pave the way for better financial management among the companies but will also make the economic scenario of the country more conducive to technological growth.
There will also be an increase in the demand for Auditing Services, Accounting services, Payroll Services and various other services. I will also increase employment opportunities in the country and will attract reputed businesses from all over the world. The government is all prepared for the expo and will highlight the latest technologies and the state of the art infrastructure which a company will be able to make use of if the business comes to the country.
Impact on other Industries
There are many different industries that will be affected by the World Expo. The industries are as follows:
- Infrastructure and Construction Business
The expo 2020 will create a massive demand for new buildings dedicated to various business activities. Every business needs will want to keep its presence in the country or at least have a place to conduct its business activities.
In preparation for the expo, the government of UAE also has constructed several various structures, and the world expo will also have several pavilions for each of the countries that are taking part in the exhibition which will create huge requirements for the construction activities.
- Travel and Tourism Business
An event of this scale is very rarely conducted in the Middle East. People from all over the world will be coming to attend the event. This will require functional transportation networks and world-class airports. The government of the UAE has already understood this requirement and has constructed one of the biggest airports in the world, which is the Dubai International Airport.
- Healthcare and Pharmaceuticals Business
The increasing number of people who will be coming to the country will be staying there for some time. This means that there will be a requirement for several healthcare services in the country. Keeping this in mind, there will be an excellent opportunity for the healthcare industry. Small clinics or even hospitals have a vast scope in the United Arab Emirates.
- Real Estate Business
Currently, there is a huge demand for real estate in the United Arab Emirates. The report says that there are 59,800 properties that are to be delivered to people in phase 1. In phase 2, the properties to be offered reaches around 33,800. Expecting a future demand for real estate, the government recently implemented a rule regarding a 10-year residency visa. All in all, investing in real estate is a wonderful option.
- Retail Business
Places such as Dubai and Abu Dhabi are famous for shopping and have many famous malls and markets which the tourists from all around the world like to frequent. According to reports, eight new malls are to be inaugurated during the period the Expo 2020 is held. Even the Government of UAE has taken steps to promote the country based on its shopping experience. The expo will prove to be a game-changer for the GCC and MENA countries and specifically the United Arab Emirates.
The pre Expo impact can already be felt as thousands of jobs have been created, and new businesses are coming to the UAE to take advantage of the upcoming event. With so many companies coming in, there will be an increase in the demand for firms that will provide essential financial services such as Accounting, Auditing, Payroll related services, VAT-related services etc. A business should choose s financial consultancy to devote most of the time to the growth of the business and not waste the necessary time on trivial work.
JAXA Chartered Accountants is a firm that will take care of the financial requirements of the company and will also provide timely and accurate advice after understanding your business. To know more about the services provided by JAXA, Contact us. We will be happy to help.
