+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.
+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.

Construction Industry

Construction Industry

Dubai is about to see a significant boost in its economy in the form of Expo 2020. The mega event is expected to boost the economy of the region to its new heights. The largest ever Expo site is being built at the Jebel Ali Dubai World Central (DWC) area at a cost of between US$ 4 billion. The secondary infrastructure spend will be upwards of US$8 billion, and will include construction opportunities in the transport, hospitality, retail and commercial sectors.

Construction Sector in Dubai

The downfall and recession in the global economy that the world saw in the third quarter of 2008 affected Dubai the most. The leading contributing sectors in Dubai’s economy are the city’s construction industry, tourism, retail, and finance companies, these industries were the primary victims of the 2008 recession, and it led to the collapse of Dubai’s economy.

The real state business in Dubai faced a big downfall during that recession period with the majority of construction companies facing a high amount of debt. The business life in Dubai literally came to a halt until the first quarter of 2011, and since then Dubai’s economy finally rose up and stormed back in progress with the businesses in Dubai eventually coming back to life. In 2013, Dubai was given the right to host the world expo in 2020 which is now only a few months away from creating history as it will provide a new wave of enthusiasm to the jobs and business sector. The Expo 2020 will be the third biggest global event and will offer ample opportunities for investors around the world and will impact major business sectors in Dubai .

How will Expo 2020 Dubai Benefit the Construction Industry?

The host city for World Expo always sees an accelerating effect on its infrastructure and construction sector. World Expo demands big scale infrastructures and buildings due to a large number of involvements from prominent companies around the globe. Shanghai, China, the city that hosted the Expo in 2010 already invested a significant amount on the construction and development of additional metro lines, roads, tunnels, bridges, and rails. The city spent nearly $40 billion for the World Expo 2010 to meet the infrastructure demands of the mega event.

Opportunities for Construction Firms

Just like Shanghai, Dubai is also splashing ample cash for infrastructure development of Expo 2020. Top business firms will be participating in the mega event, and hence, the Expo will be attended by a significant number of audiences. Massive involvement will require more resources to serve the people attending the event. Travelling, accommodation of tourists will be in high demand, and hence new hotels and facilities need to be built to provide them with the services. 

Dubai’s top construction firms and investors see Expo 2020 as a good prospect for rising opportunities in the sector. The host site of Expo 2020, Jebel Ali is spread across 480 hectares of the area which will be requiring additional infrastructure like metro extensions, buildings, hotels and facilities to accommodate and serve tourists. The development of new facilities will provide the construction industry of the city with new opportunities and eventually boosting the economy of the city.

The top finance officials of the city expect that the Expo 2020 will require at least $8 billion worth infrastructure for the successful establishment of the event. Sheikh Ahmed bin Saeed Al Maktoum, who is amongst the city’s top industrialists, claims that the event is going to be a huge success boasting to the incredible development the city has seen during the period. The construction of all the facilities for the event is set to provide ample opportunities for the businesses in the upcoming years after the Expo too.

Job Opportunities

Since the Expo will require new facilities to be built across its site, the job opportunities will automatically rise in the sector. New buildings and infrastructure will require more labour and workforce, which will lead to providing an opportunity to the locals seeking new jobs.

The construction sector in Dubai is already flying high during the development period before the deadline of Expo 2020. The development phase has already contributed two thirds to the economic activity of Dubai, with the involvement of $10.2 billion up to October 2020. New roads, bridges, and metro routes are under development and are providing jobs to many work labours in the city.

Dubai Expo 2020 will be a six months global event that will bring together 190 nations and will be welcoming big business firms, non-government organizations, educational institutions and most importantly - millions of people. The city is expecting the involvement of a record 25 million people with the majority of them coming from outside the UAE, hence during the six months, the demand for accommodation, transport, and food will be high. The millions of visitors are expected to spend big money on event tickets and hotels, eventually providing growth to the economy of the city.

What to Expect After the Expo 2020?

Top business and financial officials of the city are very ambitious towards the effect on the economy of the city after completion of Expo 2020. The investors see the Expo as a real long term economic investment, which will lead to UAE’s vision of 2021 towards its target to achieve a sustainable and robust economy.

The mega event will invite high profile firms across the globe to invest in the city and will spark a $17bn boost to the business service sector in the town in the upcoming decade.

How can Xcellence help you?

Dubai has time and again proved to be an ever-growing region for the businesses to come up and has always provided businesses with adequate resources to grow and develop in its territory. Investing in Dubai could turn up to be a very profitable decision for any business. We here at Xcellence can provide you with all the necessary information that you need to set up and develop business in Dubai. Feel free to contact us in any such case; we would be glad to help!

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