By Issac John www.khaleejtimes.com
According to economists, an Expo 2020 win would boost Dubai’s local economy up to one per cent.
Hosting World Expo 2020, which requires $7 billion in capital spending, will put relatively little financial pressure on Dubai’s government, EFG-Hermes said.
Wael Ziada, head of research at EFG-Hermes, said Dubai’s budgeted $7 billion in capital spending for the Expo bid includes $1.4 billion for a metro extension, most of which is likely to be spent towards the end of the decade.
In a research report, Ziada argued that Expo 2020 is a good fit with Dubai’s existing strengths.
He said the emirate’s economy is likely to develop along the same path regardless of whether Dubai is awarded the right to host Expo 2020 on November 27.
“The required investment in the Expo site and related infrastructure fits in well with pre-existing plans to increase the emirate’s transport, trade and tourism capacity as it cements its role as a regional entrepot. However, an Expo win is likely to accelerate the execution of these plans, increasing upside risks to the UAE’s non-oil growth but also potentially increasing inflation and debt risks,” said Ziada. More info