Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Expo 2020 to boost brand Dubai  Join our daily free Newsletter

MENAFN - Khaleej Times - 05/06/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - Khaleej Times) Direct expenditure of 7 billion forecast but share in the total economy may be small

estimates suggest new opportunities worth 36 billion arising in the area of infrastructure and facilities development projects over the next seven years. — kt file photo

preparing for expo 2020 will provide a stimulus to the economy during the construction phase of 2015-2020 enhancing dubai’s global brand and further reinforcing its position as a regional hub.

“... we caution against overstating the economic benefits of hosting the expo. we expect direct expenditure of 7 billion on the event to amount to around one per cent of gdp per year between now and 2020” citi bank’s middle east macro monthly report said.

other estimates suggest new opportunities worth 36 billion arising in the area of infrastructure and facilities development projects over the next seven years.

according to the report the “expenditure is not very large and in the context of the 670 billion of projects under way in the uae is not a significant stimulus”.

moreover it said the effectiveness of the impact of this expenditure on the local economy was likely to be limited and short-lived as the majority of contractors and workers preparing and managing the event would be foreign.

“we think the government expenditure directed towards the expo will need to be diverted at least in part from other areas of spending to avoid an excessive build-up of debt” said farouk soussa the bank’s chief economist for the middle east.

the event will be held during the peak tourism season between october 2020 and april 2021 and the authorities are expecting around 18 milion foreign visitors.

at the current rate of growth dubai’s existing tourism infrastructure including hotels and transportation will be capable of accommodating this level of visitors particularly as abu dhabi will provide additional capacity.

“in our view the visitor numbers will not be a net increase in tourism — much non-expo related tourism is likely to be squeezed out by the event” the report says.

effectively the expo should mean a bumper tourism season of close to 100 per cent occupancy but dubai runs at remarkably high occupancy levels during the peak season anyway so the overall impact should be somewhat less than the visitor numbers imply. according to data from ernst & young occupancy barely dips below 80 per cent on average throughout the year.

there are significant declines to 50 to 60 per cent occupancy during the hot summer months of july and august but these are almost immediately followed by strong rebounds back to the 80 per cent territory for the rest of the year.

public sector leverage in the emirate remains high at over 100 per cent of gdp according to the imf but the successful debt restructurings of the past few years have smoothed out the repayment schedules for this debt which had previously been highly concentrated and short term. while making the debt burden more manageable this does not however remove all refinancing risk in the emirate citi bank’s report said.

the pushing out of maturities in many instances is designed to afford time for dubai’s holding companies to see a recovery in their underlying asset values. repayments are to be made using the proceeds of asset sales when this happens.

— haseeb?khaleejtimes.com


Khaleej Times

  MENA News Headlines
 Oct 25 2016 - IS make surprise attack as Mosul offensive enters second weekMENAFN
(MENAFN) Islamic State expanded its attacks on Monday against Iraqi army and Kurdish forces to relieve pressure on its militants confronting an offensive on Mosul, its last major urban stronghold in ...

 Oct 25 2016 - EU to resume Libyan coast guard training after attack on migrantsMENAFN
(MENAFN) The European Union will go ahead with training for the Libyan coast guard this week, days after a coast guard vessel allegedly attacked a boat carrying migrants, causing four of them to ...

 Oct 25 2016 - Lebanon parliament speaker expects six months for forming governmentMENAFN
(MENAFN) Lebanon's parliament speaker, Nabih Berri, believes that even if Michel Aoun is elected president next week after a vacancy of more than two years forming a government will take from five to ...

 Oct 25 2016 - Online Retail Sales in Belgium’s Electrical & Electronics Retail Market: Ken ResearchMENAFN Press
(MENAFN Press) Ken Research announced its latest publication on, “Electrical and Electronics Retailing in Belgium-Market Summary & Forecasts; Comprehensive overview of the market, consumer, and ...

 Oct 25 2016 - Global Insurance Data Provider, Axco, enters MENA, Partners with Dubai-based Refpoint Business Consultants to Offer ServicesMENAFN Press
(MENAFN Press) Dubai, October 24, 2016: Axco Insurance Information Services (Axco), the world’s leading provider of business intelligence and information services to the insurance industry, today ...

 Oct 25 2016 - Call for inquiry into Iraq mosque attackMENAFN
(MENAFN) Human Rights Watch has called for an investigation into an attack on a mosque in northern Iraq on Friday that killed at least 13 women and children.Witnesses believe the attack in Daquq was ...

 Oct 25 2016 - Qatar's pre-Emir Khalifa dies at 84MENAFN
(MENAFN) Qatar on Sunday announced three days of national mourning after former Emir Khalifa bin Hamad al-Thani, who was deposed in a palace coup, died aged 84.In detail,the former ruler, grandfather ...

 Oct 25 2016 - Kuwait's Ooredoo profit falls by 2.6pctMENAFN
(MENAFN) Mobile operator Ooredoo Kuwait posted a 2.6 percent decline in Q3 net profit of this year.Additionally, revenue totaled USD42.6mn for the cited period, compared with a profit of 13.3mn ...

 Oct 25 2016 - Addaera Research & Polls Centre articulates importance of public participation in opinion polls.MENAFN Press
(MENAFN Press) Established in 2014, Addaera is growing from strength to strength as an emerging research, polls and survey organization in the UAE. The centre was set up with the key objective of ...

 Oct 25 2016 - Egypt put hands on sugar stocks amid bitter shortagesMENAFN
(MENAFN) Major food companies have halted production in Egypt after the government seized weeks of sugar supplies, amid nationwide shortages of the staple.In detail, the companies include Pepsi and ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help