Expo 2020 impact: Dubai business confidence hits 10-year high

DUBAI: Confidence among Dubai businesses reached its highest level in 10 years, fuelled by improved business activity with the beginning of the world’s largest event Expo 2020, Khaleej Times quoted a survey released by the Dubai Chamber of Commerce and Industry.

The survey results revealed that 76 per cent of the companies noted improved business confidence in the fourth quarter of 2021, compared to 66 per cent in the third quarter, while 78 per cent of the businesses hope that the Expo 2020 would benefit them in the coming months.

The six-month-long mega event will attract millions of visitors within and outside the UAE, leading to increased spending in the country.

The World Bank also projected faster real GDP growth of 4.6 per cent for the UAE for 2022 on the back of increased tourist inflow during the mega exhibition.

Hamad Buamim, president and CEO of Dubai Chamber, said that the trade, tourism, hospitality and logistics are the sectors that are expected to see the most business activity during Expo 2020 Dubai.

Economists also expect that the emirate’s GDP will grow faster in late 2021 and 2022 due to the Expo 2020.

The Dubai Chamber survey revealed that 83 per cent of the Dubai businesses expect an improvement in the business conditions in the fourth quarter of 2021, compared with 66 per cent in the previous quarter.

The Dubai businesses identified global supply chain restrictions and rise in the commodity prices as key challenges for them.

Buamim said that growing optimism in the business community and promising economic prospects are being created by the Expo 2020 Dubai.

Increased government support for the private sector, success in overcoming the Covid-related challenges, new business incentives, easing travel restrictions and higher oil prices are among the other key factors that contributed to the positive outlook, he added.