With Expo 2020 upcoming in the Middle East, many are wondering what will happen to the region. While you may have come across a lot of discussions about what will take place, many are also preparing long-term for the lasting impact of this world event – particularly businesses and entrepreneurs.
In this article, we will tackle insights about what will potentially happen within the 3 phases of Expo 2020.
- During Expo
Before we dive into this, let us shed clarity into the questions of many who are still asking – “what is an expo?”
Expo 2020 is a world event conducted in a specific country every 5 years. During the time of choosing, countries bid to host the event and the one that wins the bidding gets to host the exposition and house other participating countries for the duration of the event.
The main goal of a wold expo is to serve as an exhibiting platform for economic progression, advancement, and opportunities. It fosters awareness to significant development along economies and significant industries. And it brings along countless opportunities for businesses to expose themselves, connect, collaborate, and expand.
This 2020, the EXPO is set to take place in the Middle East for the first time. It spreads over 438 hectares in area. The Expo 2020 is seen to have a massive impact in the entire region of Middel East, Africa and South Asia, as well the participating countries. Expo 2020’s theme is “connecting minds, creating the future”.
The impact of Expo 2020 on growth of new business setup in Dubai
From the time of winning the bid for Expo 2020, Dubai has had a 4% increase in the stock market index. Twenty-five million visitors are expected to come of which 70% are from other countries.
Dubai being an emirate known for welcoming visitors and new business setup, the emirate is seen to have a massive increase in end-consumer service demand including leisure hospitality, food and beverage, travel and tourism, medical, e-commerce and retail, and real estate and transportation.
This pushes forward the supply chain industry giving many businesses and entrepreneurs in different sectors opportunities to provide good and services.
This is taken advantage by many businesses already preparing their strategies for maximizing the event. Here are some insights on which industries will be rising throughout the different phases of the expo 2020.
A year before Expo 2020 begins, this preparation phase has already given a boost to many sectors.
- REAL ESTATE AND CONSTRUCTION – anticipating the attraction of million of visitors, companiesattended to the demand for housing – particularly midscale spaces including apartments, residential spaces and new offices, and accommodations.
- BUSINESS ADVISORY – Companies are coming to the country to establish their presence andmake the most out of the awaited exposition. With this comes the need for Business Setup advisors, consultants, and firms that help businesses comply with the process and settle.
- TALENT SOURCING – As many companies are setting up new businesses, many jobs are beingfilled which requires talents. HR companies are optimizing this opportunity to boost it’s own industry.
DURING EXPO 2020
During the 6-month expo, with the millions of visitors in the country – the Hospitality Sector is seen to benefit the most.
The influx of visitors demand for accommodation, food and beverage, leisure and luxury, and tourism goods and services.
HH Sheikh Mohammed bin Rashed Al Maktoum, the Ruler of Dubai and UAE Vice President and Prime Minister has approved the Dubai Tourism strategy vision.
Dubai is broadening its offers in events, attractions, and infrastructure that aims to appeal to a wider audience.
The three focus of the strategy are:
- Maintaining market share in existing source markets
- Increasing market share in markets with high growth potential
- Increasing the number of repeat visits.
o TRAVEL & TOURISM – Long before the start of Expo, the Travel and Tourism sector of the country has been doing well with its vast campaigns to attract visitors. With the boost that the country gets during expo, this will gain more traction and rise further.
o MEDIA & ADVERTISING – In relation to the many businesses being established in Dubai, there is a higher need to provide these businesses with help in terms of getting them seen among the inevitably high competition. This calls for advertising companies and digital marketing experts.
o RETAIL & LOGISTICS – The demand of visitors will allow retail businesses to flourish along with logistics ensuring the flow of products and services. This involves warehouses, retail shops, outlets, and many more.
The lasting benefit of expo is seen to benefit sectors including tourism in general, professional service sector, trading, and technology.
- TOURISM – a large share of Dubai’s GDP economy comes from tourism. Mainly, there have been
huge incentives from tourist arrivals, visa arrivals, massive result of digital campaigns attracting
people to come, and consumption of visitors.
- PROFESSIONAL SERVICE SECTOR – being a top business destination, the 2021 vision of the UAE
favours professional service sector with its growth in economic activities. This includes Banking
and Financial services; and Technology and Innovation.
- TRADING –28% of Dubai’s GDP is from the trading sector. The economic diversification
supported by the government. According to survey, the following will be benefitting from this
phase: household goods, consumer goods, machinery, textile sub-sectors. Exporters will be
benefitting from trade and export of alumunim, precious metals and stones, organic chemicals,
and more – with rising demands in the South American market.
- TECHNOLOGY – The arrival of the most advance technology in the region calls for more. Expo
2020 will be the first commercial customer to access 5G in the region. The Smart site plan that is
supposed to create an ultra-advanced customer experience through the an integrated gamified
digital payment platform to customisable mobility solutions and energy efficient smart building
was also revealed. Artificial Intelligence is moving at a very fast-pace and the call for this is
growing stronger from companies who are continually seeking to integrate it with their systems
including insurance services, data analysis, traffic management, medical solutions, customer
service, leisure facilities, and government departments. There will be a huge shift in e-
commerce that harness the potentials of Artificial Intelligence Technology.
Apart from these, so many industries are seen to rise along with the others. This includes the Medical and Wellness sector, Conventions and Events, and many more.
The entire event is seen to have a massive boost to the whole economy of the country not only during the phases but to have lasting impact after.
If you are a business owner looking to maximize this opportunity to expose, connect, and grow – strategizing for the Expo 2020 would be a wise step.
SDAC Consulting DMCC has been helping local and foreign businesses settle in the UAE and efficiently strategize. From market research, feasibility studies, business setup, to strategic consulting, our expert and experiences business advisors provide a full step-by-step assistance to companies like yours. To know more, reach out to us through [email protected]