As we near he launch date of Expo 2020, the Middle East anticipates one of the greatest business events to take place on its land, one that will have repercussions for years to come.
On this occasion, FXGate Dubai, a forex broker firm, asked their Research Team members their thoughts on the event, and how it would impact the Middle East.
How do you think Dubai’s Expo 2020 will affect the region in general and Dubai in particular?
Comment by Montasser Madboly:
The United Arab Emirates is the first Arab country to succeed in hosting a World Expo, this year known as the Expo 2020. It is expected that if Dubai organizes this international exhibition successfully, it will greatly contribute to enhancing hosting opportunities for the rest of the region in the coming years. It is also likely to create many investment opportunities as the UAE is one of the leading countries of the Gulf region and the Arab world in general. With the expo slogan being “Connecting Minds, Creating the Future” it will create opportunities for communication and connection between the youth of the Arab region and the rest of Europe and the United States.
Speaking of the impact of the Expo on the city of Dubai, it is expected that it will attract more than 25 million visitors, with 70% of those visitors coming from outside the UAE.
It is expected to have a direct and an indirect economic impact. The output of the Expo will reach approximately AED 145 billion and will raise the value of non-oil trade in Dubai to AED 5.4 trillion in 2020, especially for hospitality and aviation. The Expo 2020 is thought to be a platform that will set a sustainable future for the region for decades to come.
How do you think Dubai’s Expo 2020 will affect Gold and Oil industries locally/globally?
Comment by Ihab Maximous:
The Expo Dubai 2020 is one of the largest international events awaiting us this year. It is being held in an Arab country for the first time in history, which will have a significant impact on many social, economic and financial aspects alike. It is anticipated to have an impact on the most followed commodities in the markets such as gold and crude oil. Dubai is expected to receive approximately 25 million visitors during Expo 2020 which will likely affect local gold sales over this period. There is an projected increase in sales of 40% locally for the precious metal. However, we do not expect this event to affect the global gold price, especially as it is more related to being a safe haven against global inflation and developments in global events such as the Corona virus that has recently spread.
As for the expected impact on crude oil, the Dubai Expo 2020 may be an indication of confidence in investment and expansion in the region for international companies and investors. If the event is a success, there will likely be an increase in Chinese and international tourism to Dubai. At the moment we still see some fears surrounding the Corona virus but if this subsides we anticipate a positive outcome on prices for Crude oil, especially since Dubai received nearly a million Chinese tourists last year and it is expected to see a further increase in visitors during the event if it is completed well.
How do you think Dubai’s Expo 2020 will affect the Financial Services industry overall, locally/globally?
Comment by Hussam Elagamy:
It is certain that an event such as the UAE hosting a global exhibition such as the Expo 2020 will have a great impact on the financial services industry locally and globally, since it’s the first of its kind and one of the most important international events in the region. Over 6 months the Expo 2020 is anticipated to attract close to 25 million visitors. In addition to this, events will be organized by members from participating countries, which will attract many sectors, especially tourism. In addition to the anticipated doubling of investments related to infrastructure during the exhibition preparation period, that was estimated at AED 25-35 billion. The banking and credit sector contributions have played a big part in helping the UAE’s financial sectors and Dubai to create more than 277 thousand job opportunities.
As for the direct impact of Expo 2020 on the financial services industry, it is certain that markets will benefit from the popularity of international investors and companies attending the exhibition, as confidence grows in global markets after the outbreak of the Corona virus gets under control. Analysts are showing signs that confidence indicators will head higher this year against the backdrop of this huge economic event.
Will the Dubai Expo 2020 have a significant impact on the wider Middle East region?
Comment by Ahmed Mamdouh:
The Expo 2020 is widely expected to have the participation of many countries in the Middle East region, and of course the exhibition will be a distinguished meeting opportunity that brings together representatives of participating countries and foreign investors. There is no doubt that the insertion of foreign investment will have a positive impact, as well as contributing to high rates of growth and employment opportunities.
Investments in nuclear energy in the Middle East could be appealing to foreign investors, especially after the UAE has received the green light to operate in the Arab world’s first nuclear power plant. Given the extensive amounts and hours of sunshine in most of the Middle East countries and the tendency to reduce the dependence on natural gas and oil, foreign investments in solar energy can gain more traction. In addition, the expected success of EXPO 2020 will allow the Middle East countries to be seen as a potential destination for hosting similar Expos over the coming years, which will certainly have a significant economic impact on many areas, including tourism, which is one of the most lucrative areas for the Middle East countries.