The international exhibition Expo 2020 will serve as an impetus for the construction of commercial real estate in Dubai.
Commercial infrastructure will be in the focus of construction in the UAE for the coming years. In connection with the development of economic diversification, various Emirates will focus on the development of a more prestigious segment of the industry.
As explained by experts from BMI Research, the economic situation will stimulate the commercial construction industry in the UAE in the coming years .
Expo 2020 will stimulate commercial activity in Dubai in the short term, while in the long term, the diversification of oil revenues will redirect the flow of investment to commercial construction projects, especially in Abu Dhabi.
As reported in Dubai, the development of commercial infrastructure will continue to be concentrated in Dubai, mainly due to the ongoing construction activity for Expo 2020. Expo 2020 is a key catalyst for construction activity in more expensive segments. The inflow of investments related to the Expo for the last year, has increased significantly.
In November 2017, such companies as Cimolai Rimond Middle East, a joint venture between Cimolai and Rimond, entered into a deal to build Al Wasl Plaza in Dubai. The project is the central object of the Expo 2020. The total area of construction will be 438 hectares, which makes it the largest project for the World Expo that ever existed.
The construction of the facility in Jebel Ali will cost from 2 to 4 billion dollars. 180 target pavilions, an underground railway network and photovoltaic solar batteries, providing 50 percent of the consumed electricity, will be presented at the site. It is expected that the work on the project will be completed by 2019.
According to the BMI, the share of Abu Dhabi in the country’s GDP will grow in the coming years in connection with the government’s program to expand the non-oil revenues of the emirate.
By 2030, the government plans to attract 7.9 million tourists annually as part of the Abu Dhabi development strategy, compared with 4.4 million in 2016. In addition, the leadership of the emirate seeks to increase its trade and office space to 4 and 7.5 million square meters by 2030, respectively, compared to 2.5 and 1.5 million in 2013.
“We are planning to implement a number of major commercial projects in construction, which will help us maintain high economic growth rates,” BMI experts said.
So, as Dubai is designated the venue for the next World Expo, the city will have to implement many large-scale projects. The government of Dubai has approached this task in its ambitious way, and about $ 7 billion will be invested in the infrastructure of the city. New projects will appear in the emirate – from skyscrapers to artificial islands – that will open unprecedented prospects for investors.