In 2020, the World Trade Expo will take place in the Middle East for the first time in history. It will be a powerful impetus to the development of various industries not only in Dubai, but in the country as a whole.
Infrastructure expenditure is due to rise by 46.5% in 2018, accounting for 21% of total spending.
A record spending of Dh56.6 billion envisaged in Dubai’s expansionary budget for fiscal 2018 will trigger a major jump in investment spending and provide a major boost to the economy, analysts said.
The budget, allocating an increased spending to boost infrastructure efficiency, is line Dubai Strategic Plan 2021’s targets and future commitments, especially Expo 2020.
The UAE government will increase spending, especially in areas of infrastructure and construction.
Among the works related to the preparation for Expo 2020, first of all improvement of the city’s transport infrastructure is, including the expansion of the Dubai metro and two international airports.
Thus, Al Maktoum International Airport will be able to accept 200 million passengers per year by 2020. At the same time, this capacity is necessary not only to cope with the influx of visitors, but also to the growing tourist flow, which is expected to reach 20 million people by the time of the event.
Other spheres will also have a growth in spending, with wages and salaries set to grow up to 10 per cent (account for 33 per cent of the 2018 budget), in part due to over 3,100 public sector jobs that are expected to be created. The budget goes on to demonstrate a strong commitment to social expenditure, including health, education and housing.
Government has always been concentrated on rising the budget and the current budget for 2018 shows the same.
Additional spending by the government generally results in more jobs and a better economy. This growth-oriented budget will boost the confidence of resident and overseas investors and create new opportunities in the market.
As a result of the preparations for Expo 2020 in Dubai, investments in real estate and tourism will be increased. It is expected that this will further strengthen the country’s economy.
The economy of Dubai will remain the least vulnerable to future economic crises due to ongoing investments in capacity building ahead of Expo 2020 Dubai.
In 2017, new projects were opened, such as Dubai Opera, Louvre Abu Dhabi, Dubai Parks and Resorts, etc.
Expenditures of such a large scale reflect ambitious plans to diversify the country’s economy as part of a strategy to establish an innovative knowledge-based economy to help efforts to promote the country as an international, sustainable business center.
Organizers of the exhibition assure that such expenses are fully justified, because for six months of Expo, the economy of Dubai will receive more than $ 20 billion. Moreover, such spheres as hospitality industry, retail and public catering, construction industry and many others will receive a powerful impetus to development.
An important legacy of Expo 2020 will also be the state-of-the-art infrastructure and a large number of attractions that will make Dubai not only one of the most popular leisure destinations in the world, but also an attractive place for life, business, science, study, etc. Emirate authorities emphasize that Expo is only one of many steps aimed at long-term development of Dubai as an important tourist and economic center of the region and the world, which allows to give positive forecasts regarding the development of the emirate in the period after the event.