According to property investment firm ‘Select Property’, Foreign District Investment (FDI) increase of approximately 15% could be the result of the World Expo event in Dubai in 2020. The FDI is the foreign investment office of the Emirate’s Department of Economic Development (DED).
An FDI executive attributes this positive economic indicator ahead of the World Expo to the event’s effect on Dubai.
A government official told the ‘Select Property’ company that economic growth is set to boost Dubai’s level of FDI by between 10 to 15%.
Fahad Al Gergawi, CEO of FDI commented: “The focus on growth is coming with mega projects that have been announced by the government.”
A flurry of activities was spurred by Dubai’s bid to host World Expo 2020; a six-month event that is expected to attract 25 million visitors, and all investment levels have followed suit by increasing in all domains. Buyers have been purchasing property and the government has unveiled projects such as the Mall of the World and three new theme parks.
To date, projects and property investment prior to the event could total a worth of $30bn, while in 2014 alone, the UAE government has earmarked $1.73bn for new infrastructure development.
Dubai’s foreign trade is believed to likely go over the $1tr mark just for hosting the event, with most saying that the Expo could “open up investment opportunities for domestic and foreign firms alike”.
Signs of growth are widespread. As a matter of fact, private consumption is expected to rise at an average rate of 7.8% for the next 12 months, and retail sales in the Emirate are likely to grow by 32.9% to $41.1bn during the same period.
Dubai’s Emirate not only recovered from the previous downturn of 2008 but its economy is already boosted from the investment surrounding the bid and is very likely to continue apace. GDP as a consequence has increased by 4.6% in 2013 and the DED expects that to rise to 4.7% in 2014.