Expo 2020 and Business Growth Opportunities in Dubai
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Expo 2020 and Business Growth Opportunities in Dubai
Dubai is all set to host the Expo 2020. The Expo is to be held in Dubai from October 2020 to April 2021 and will be attended by more than 200 nations.
Organizations from all over the world will showcase their culture and achievements.
The Expo 2020 is expected to act as a catalyst for the growth of the UAE economy in the future years.
Expo 2020 Highlights
The expected visits for the Expo 2020 is 25 million visitors for the 6-month period. There is an enormous opportunity to sell and promote Dubai in front of the world.
The following are few highlights of the upcoming Expo 2020 which would open its doors to the public in October 2020.
1. New Business Relationships
Dubai is synonymous with tourism, hospitality and a wide range of retail solutions. The commercial trade license registrations in Dubai is expected to go up due to the Expo 2020.
With the Expo 2020, Dubai will strengthen its presence into newer industry verticals like sustainable energy, smart transportation, driverless cars, flying taxis, 5G communications, etc.
2. Expo 2020 District
The Expo 2020 site will be transformed as a high level residential and office complex after the Expo 2020.
Alongside, the Expo 2020 site, the Government of UAE is all active in funding new roads, rail lines and expand airport capacity to accommodate the growing influx of the traffic.
3. Creation of More Jobs
The Expo 2020 Dubai is expected to result in more than 270,000 new jobs in the UAE.
The expo 2020 will benefit the construction sector as there will be a requirement of skilled workers who are specialized in sustainability and energy management.
Also, there will be requirements from communication experts to roll out the 5G support for the event. With the Expo 2020, there will be a talent pool of skilled workers in the UAE market.
The UAE economy is expected to be boosted by about USD 35 billion as a result of the Expo 2020.
The event is expected to generate revenue of up to 35 billion USD and foreign investments of up to 150 Million USD are likely to flow into Dubai and the UAE market through sectors like retail, hospitality and real estate.
There is a rise in business opportunities for companies and individuals based in UAE as well as foreign investors in the context of the Expo 2020.
The rise in demand for business services, construction, tourism, etc., can be segmented into three phases.
Phase-1 Pre Expo 2020
There will be a surge in the job market due to the requirement of skilled and unskilled labor required for the completion of the Expo site on time.
1. Skilled and Unskilled Labor
There will be an evident rise in the demand for skilled and unskilled labor.
There are extensive development works and landscaping works undertaken in the expo construction site and the adjacent areas.
There are many government projects like the RTA road works, Dubai Metro Rail line extension to the expo site, etc., currently inactive stage.
2. Demand for Residential space, Hotel accommodation, and Office blocks
Construction businesses will see giant investments and speeding up due to the expo 2020. There will be many new entrants into the market.
Dubai has with its ultra-luxury and exotic locations like the Palm Jumeirah, Marina, and Business Bay have gained a place in the global real estate investors’ minds.
Phase -2 During Expo 2020
With related to the Expo 2020 there will opportunities in the following sectors
1. Printing and Packaging
The ancillary business sectors will see a rise in demand. The Expo 2020 will help the printing and packaging sector to gain traction.
The Expo 2020 will have requirements in printing flyers, documents, brochures on a large scale.
Also, packaging units including logistic providers will benefit from the Expo 2020 due to the requirement of relocation and transportation of equipment, people, ancillary items in and out of the Expo site.
2. Media and Advertising
Newspaper, hoardings, airport/highways/ road signage’s, etc., will grow in demand for capturing the attention of the inflow of the Expo 2020 travelers into Dubai.
Media and advertising licenses and company formations will be on a rise to meet the demand driven by the Expo 2020.
The hotel industry will see a hike in their guest signups. The occupancy rates and average room rents are expected to be on an all-time high figure.
4. Travel Agents/ Agency
The travel agents will play a huge role in arranging for the travel requirements of future visitors and the needs of the visitors during the Expo 2020.
Phase 3 – Post Expo 2020
Post Expo 2020 there will be a continuous inflow of investors into UAE. There will be several new projects signed during the Expo 2020.
The foreign investments and new business set up are expected to see a rise during and after the period.
Following professions will see a rise in demand:
1. Human Resource Services
Many investors, companies will visit Dubai and also continue their stay to explore business opportunities. It will help to trigger the demand for Human Resource Services in Dubai.
There are a couple of long term infrastructure projects lined up in the UAE. After the Expo 2020, there will be a list of internationally funded projects in the UAE. It is expected to trigger the UAE economy in the coming years.
The Expo 2020 is emphasized on environment-friendly measures, reduce carbon footprints, sustainable green energy, etc.
3. Energy & Water
The Expo 2020 aims at creating a lot of energy-efficient projects. It is focused on solar wind energy plants. Water treatment plants, etc.
The year 2020 is the perfect year for setting up or moving your business into the UAE. As the Expo 2020 is expected to open a new world of opportunities for businesses in the UAE.
New Business Growth Opportunities
There are various Free Zones and business license types in the UAE to explore before setting up a business in the UAE. The most common business license types in UAE are the professional licenses and trade license.
Depending on the business license you can choose the Free Zones. There are more than 40+ Free Zones in the UAE for starting a business.
Some of the common business license types in demand and relevant for leveraging the opportunities arising from the Expo 2020 are:
- Commercial Trade license
- Industrial License
- Manufacturing License
- Service License
- Consultancy License
To know more about Company Formation in the UAE, talk to our experts.
Contact: Aurion Business Consultants