Dubai Expo 2020 and Quick benefits
It’s problematic to envision Dubai struggling fishing village it once was when you see today the extraordinary changes that have taken place in the space of a generations that have taken place in the space of a generation.
Shanghai The Shanghai Expo, which ran from May to October 2010, attracted 72 million visitors. Yet the slowdown in tourist numbers and the reopening of temporarily closed factories around the site shortly after the Expo quickly sobered up the city of 14 million people. So did the realisation that 545 billion (D11165.28 billion) had been spent to host the extravagant event — an amount largely funded through a combination of government bonds and bank loans.
The city did benefit from direct revenue, an enhanced image and the development of a range of new transportation systems and entertainment facilities. It also found a good reason to transform nm-down districts into sought-after areas for luxury commercial development. In fact. the retail and residential property were some of the direct beneficiaries of the Shanghai Expo. al-though many projects had been hurriedly completed for the event. Most of all, the Expo helped position Shanghai as a global city. as the government did an excellent job of building up the infrastructure, as what Shaun Rein, Managing Director of the China Market Research Group. had said. While the Dubai Expo slightly differs from the Shanghai event. being the first to be held in the Middle East, this hasn’t stopped a rising concern over increasing inflation.
Having grown 3 per cent this year from last year, inflation is running at Its highest in nearly five years. unsurprisingly driven by soaring property prices. “General optimism about the Dubai Expo 2020 remains high,” Dubai-based research company Insight Discover)• stated in its Dubai Expo 2020 report, which revealed in-sights from a survey of 1.087 UAE residents. Increased risk However, the analysis also noted that many residents were concerned about the impact on rents and property prices, as most IvIteve the event had elevated the risk of another housing bubble. A Credit Research Analyst at Barclays, said the Expo may encourage Dubai and corporate entities to undertake large, debt-financed projects. This could increase the corporates’ exposure to any post-Expo economic slow-down if real estate prices were to face a downward pressure.” says Bashtacva. Of course. the Expo is not just about real estate, but the market is a significant contributor to the emirate’s economic growth_ Between 2012 and last year alone, the total value of real estate transac-