(MENAFN -Khaleej Times) uk export finance is ready to support dubai with billions of dirhams funding for projects
Uk export finance is ready to support dubai government with billions of dirhams funding for the world expo 2020 projects its regional head told khaleej times.
In recent years uk export finance supported constructions projects worth 1 billion in the uae and it provided another 1 billion to emirates airline for airbus and rolls-royce engines according to ali sherwani regional head project marketing europe mena and central asia (menasa).
Expo 2020 is estimated to attract about a 6.9 billion of direct capital investment in infrastructure and a further 1.6 billion of investment in the emirate’s tourism and leisure industry. — kt file photo
“initially we are offering 500 million and it could go up to 1 billion or more” sherwani said explaining that it depends how many uk companies will win contracts for expo 2020 related projects awarded by the dubai government. he said that the expo 2020 in dubai is a big opportunity for uk companies as it will attract huge spending by the government and private sector for infrastructure and tourism-related projects.
Expo 2020 is estimated to attract about a 6.9 billion of direct capital investment in infrastructure and a further 1.6 billion of investment in the emirate’s tourism and leisure industry. “before other countries come in we have showed our interest and put some money on the table” he added.
“they [dubai government] will accept the money if they award contracts to uk companies. they might say we don’t want this money” he explained.
Responding to a question he said: “they are happy but there is no commitment from any side at this time. we just wanted to show our interest in expo 2020 projects.”
At the moment not a single contract has been awarded he said adding: “once the tender process will start uk companies will take part to win contracts. so whoever win from the uk the money is there.”
Giving an example of a recent project awarded to a joint venture al futtaim carillion for the dubai trade centre district by dubai world trade centre he said that the project is worth dh375 million or £61.4 million and “we are behind it as it’s a british company.”
Uk export finance also provides funding support to emirates airline. “we support to emirates when they buy airbus and rolls-royce engines attached. we help emirates to finance because we provide the wings.” emirates is the largest customer of super jumbo airbus a380.
Experts say dubai’s hosting of the world expo 2020 will contribute as much as 40 billion to its economy driven largely by an expected influx of 25 million tourists as well as new investments related to the city’s build-up for the event.
The mega exhibition would increase dubai’s economic growth by 0.5 percentage points per year and two percentage points in 2020 according to bank of america merrill lynch report. the report also put the total cost of financing the expo at 8.4 billion or 8.9 per cent of gross domestic production or gdp.
Expo 2020 is expected to create more than 277000 jobs in the country. it is also estimated that 40 per cent of jobs would be in the hospitality sector and 30 per cent in construction. the expo 2020 will be the first to be held in the menasa region and would also coincide with the uae’s golden jubilee.