Reem Al Hashemi: World Fair will further UAE’s competitiveness
Mega event will spur natural growth for business across region, Reem says
Hosting the World Expo 2020 is expected to boost the UAE’s competitiveness across parameters like economic activity, foreign direct investment and business growth.
Reem Al Hashemi, UAE Minister of State and Managing Director of the Dubai Expo 2020 Higher Committee and Director- General of the Dubai Expo 2020 Office, spoke with Gulf News about how Dubai is preparing to host the event. What key economic indicators have picked up since Dubai won the bid to host the World Expo 2020? What effect has winning the bid had on Dubai’s economy? Dubai’s economy was already in the ascendancy prior to the announcement of the win, and the feel good community spirit of knowing Expo 2020 is coming to the UAE continues to drive economic progress.
Expo 2020 marks a milestone that will fast- track the next stage of development, and competitiveness for Dubai and the UAE. [ It] is a catalyst. We have earned the privilege to be the host of one the world’s historic and notable mega events for the international community, and more importantly, introduce it to the MENASA [ Middle East, North Africa and South Asia] region for the very first time.
Events like Expo 2020 not only elevate the brand reputation and attractiveness of the host city/ country as a destination, but more importantly, they also stimulate economic activity, FDI [ Foreign Direct Investment], and business growth. Expo 2020 will naturally serve as a lever to further the UAE’s competitiveness across all these parameters. What are your expectations in terms of private investments in Dubai in the run- up to Expo 2020? Over the next six years, we expect to see demand generation across various sectors directly and indirectly linked to the delivery, operations and servicing needs of Expo 2020. Accordingly, there should be a natural growth for businesses across the wider region – from raw materials and manufacturing, to products and services providers.
Expected examples include: construction and real estate, engineering and infrastructure, logistics and transportation, event management, hospitality, aviation, tourism and retail. Much of the pre- event development will be to support the emirate’s strategic growth agenda beyond 2020. Expo 2020 is a stimulus that will improve our competitiveness as a business destination and will invariably foster accelerated growth. Is there a plan to increase accommodation and services to address demand pressures in order to avoid excessive inflation? Dubai continues to rise in global prominence and experience robust economic growth by building on the solid and sustainable pillars of trade, tourism, finance and logistics. This momentum is due to a commitment to control inflationary pressure. For example, through the introduction of rental caps to stabilise the property market. As a result of these efforts, the UAE continues to be ranked first in the region for quality of living, business activity continues to show steady expansion and job creation remains solid.
Are you on track to begin full-
Construction will be ready to start on Expo 2020 site once the registration requirements, which are set forth by the Bureau International des Expositions ( BIE), are completed. Site readiness work has already been completed and our master plan programme will also be finished early next year. Can you please expand on how the government will contribute to the funding of Expo 2020- related infrastructure as against funding from the private sector? The Expo 2020 budget is robust and transparent and is the result of detailed financial analysis.
The total funding requirements for Expo 2020 are estimated at € 6.4 billion across short- and long- term financing needs.
The Government of Dubai is committed to financing Expo 2020’ s capital budget (€ 5.2 billion) required operating expenses will be recovered in full from the revenues anticipated to be generated by Expo 2020 operations.
Given that a significant portion of infrastructure and assets will be retained as legacy for the Expo 2020 site and wider city, Expo 2020 represents a significant opportunity for private sector investment. There has already been a high volume of interest, with investors recognising the opportunity that Expo 2020 offers.
As part of our commitment to making Expo 2020 a globally inclusive event, and reflecting our belief in the power of partnerships, a formal outreach programme will be launched at an appropriate time. This will present the various opportunities available for the public and private sector. What are some of the construction- related challenges you expect when full- fledged construction commences? Dubai has a long track record of delivering mega projects, and whilst preparing for an Expo 2020is a big task, one that will create an extensive and complex construction project, we are confident that we will deliver it on time and to the extremely high standards that Dubai initiatives command. We have put in place a world- class team supported by industry- leading consultants to ensure a successful delivery, which is being further supported by our key government and private sector partners to ensure the seamless integration into the wider city infrastructure and planning.