UAE’s private sector elated about Expo 2020, pins its hopes on itkwsmedeveloper
The UAE’s business community is excited about 2020, mainly because of the upcoming Dubai Expo. The community has pinned all of their hopes on the investment it is bound to attract to the country.
According to David Owen, an economist at IHS Markit: Businesses are expected to grow in the year 2020 as this year is considered more upbeat than the previous one.
The reason behind these expectations is the surge in tourism and investment that the World Expo 2020 is touted to draw. Besides that, job opportunities and hiring capacities of the nation will also observe an uplift because of this.
Dubai Expo 2020, which will start from October 20 to April 10 of the next year, is expected to attract over twenty-five million visitors from 39 confirmed participating countries. This event is predicted to generate business activities mainly for tourism, hospitality, real estate as well as other sectors worth billions of dirhams.
The private sector will enjoy this increase in business activity. Hence, the UAE’s economy is projected to grow at a much faster pace; then it did in the last few years.
Positive effects on the economy of this anticipatory high:
Purchasing power and activity rose for the first time in three months during December. Experts attributed this to new markets ordering for the first time in large amounts and depletion of input stocks, but the overall increase in input buying was modest at best.
Nonetheless, this increased activity spurred an improvement in vendor performance, as it was reported by some firms. Placing stricter delivery deadlines also enhanced the performance of these vendors.
The establishment of business setups in Dubai also picked up momentum in the later half of 2019.
Job creation and employment rate:
The trend for employment, although remained subdued, showed a notable increase in December. The economists of the UAE are considering this trend as a good omen and are predicting continued growth in 2020 due to the expo.
The fickleness of economic indicators continue:
PMI –purchasing manufacturing index – data showed that December 2019 was the weakest month of the year, showing the lowest output growth rate since 2011!
New work is rising but only marginally. The existing businesses are facing stiff competition that led them to offer discounts to appeal to the customers.
The silver lining:
Even though the economic indicators are not painting a pretty picture. The UAE businesses, according to these indicators, are reporting a bleak outlook. The rate of expansion for the third successive month is flat.
However, all is not lost as the upcoming World Expo 2020 is said to bring with it a flurry of activity. That will surely boost the subdued economy of the region.
Moreover , the rate of inflation in the UAE was relatively mild, which is good because the prices for raw materials and transportation were at an all-time high in December of 2019. Thus, curbing inflation.
Due to the upcoming Expo 2020, the UAE sees a renewed upturn in its economy. The establishment of new business setups in Dubai is again on the rise. So, if you a motivated entrepreneur is considering to try their luck in Dubai, then you should not wait any longer and dive in immediately.
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