Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Expo 2020 to boost brand Dubai  Join our daily free Newsletter

MENAFN - Khaleej Times - 05/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Direct expenditure of 7 billion forecast but share in the total economy may be small

estimates suggest new opportunities worth 36 billion arising in the area of infrastructure and facilities development projects over the next seven years. — kt file photo

preparing for expo 2020 will provide a stimulus to the economy during the construction phase of 2015-2020 enhancing dubai’s global brand and further reinforcing its position as a regional hub.

“... we caution against overstating the economic benefits of hosting the expo. we expect direct expenditure of 7 billion on the event to amount to around one per cent of gdp per year between now and 2020” citi bank’s middle east macro monthly report said.

other estimates suggest new opportunities worth 36 billion arising in the area of infrastructure and facilities development projects over the next seven years.

according to the report the “expenditure is not very large and in the context of the 670 billion of projects under way in the uae is not a significant stimulus”.

moreover it said the effectiveness of the impact of this expenditure on the local economy was likely to be limited and short-lived as the majority of contractors and workers preparing and managing the event would be foreign.

“we think the government expenditure directed towards the expo will need to be diverted at least in part from other areas of spending to avoid an excessive build-up of debt” said farouk soussa the bank’s chief economist for the middle east.

the event will be held during the peak tourism season between october 2020 and april 2021 and the authorities are expecting around 18 milion foreign visitors.

at the current rate of growth dubai’s existing tourism infrastructure including hotels and transportation will be capable of accommodating this level of visitors particularly as abu dhabi will provide additional capacity.

“in our view the visitor numbers will not be a net increase in tourism — much non-expo related tourism is likely to be squeezed out by the event” the report says.

effectively the expo should mean a bumper tourism season of close to 100 per cent occupancy but dubai runs at remarkably high occupancy levels during the peak season anyway so the overall impact should be somewhat less than the visitor numbers imply. according to data from ernst & young occupancy barely dips below 80 per cent on average throughout the year.

there are significant declines to 50 to 60 per cent occupancy during the hot summer months of july and august but these are almost immediately followed by strong rebounds back to the 80 per cent territory for the rest of the year.

public sector leverage in the emirate remains high at over 100 per cent of gdp according to the imf but the successful debt restructurings of the past few years have smoothed out the repayment schedules for this debt which had previously been highly concentrated and short term. while making the debt burden more manageable this does not however remove all refinancing risk in the emirate citi bank’s report said.

the pushing out of maturities in many instances is designed to afford time for dubai’s holding companies to see a recovery in their underlying asset values. repayments are to be made using the proceeds of asset sales when this happens.

— haseeb?khaleejtimes.com


 


Khaleej Times




  MENA News Headlines
 Jun 26 2016 - Saudi Arabia chooses financial planners for USD10bn bondMENAFN
(MENAFN) Saudi Arabia has picked Citigroup, HSBC and JP Morgan to arrange its new USD10 billion bond, local financial sources reported.Banks had pitched for roles on the transaction earlier this ...

 Jun 26 2016 - Dubai's new industrial vision to generate USD44bMENAFN
(MENAFN) Dubai has announced its new Industrial Strategy, which will oversee 75 initiatives to add USD44 billion to the emirate's economy.The plan has been approved by Vice President and Prime ...

 Jun 26 2016 - Turkey Anel grasps USD66m in DohaMENAFN
(MENAFN) Turkish-based Anel Mepa has won an USD66.5 million contract for the Red Line of Doha Metro scheme, a report said.In detail, the agreement includes building automation and management and ...

 Jun 26 2016 - Oman engineering college kick off solar projectMENAFN
(MENAFN) The Sultan Qaboos University (SQU) College of Engineering said it's currently working on a new solar project.In detail, the USD559 thousand project is expected to generate electricity with ...

 Jun 26 2016 - Damac awarded USD817m deals in H1MENAFN
(MENAFN) Damac Properties, a UAE firm, said it had awarded 25 construction and consultancy contracts worth USD817 million during the first half of this year.In detail, the leading luxury real estate ...

 Jun 26 2016 - Saudi, UAE say no big financial effect from BrexitMENAFN
(MENAFN) Saudi Arabia and UAE said that they did not expect remarkable effect to their financial institutions after Britain's vote to leave the European Union."Kingdom had already made some ...

 Jun 26 2016 - UAE Embassy in distributes Ramadan aid to Muslims in VietnamEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) HANOI, 26th June, 2016 (WAM) -- The UAE Embassy in Vietnam has overseen the distribution of food aid to 150 underprivileged Muslim families in the Nghia ...

 Jun 26 2016 - Qatar Petroleum announces integration of TasweeqEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DOHA, 26th June, 2016 (WAM) -- Qatar Petroleum, QP, the state owned petroleum company in Qatar, has announced the integration of Qatar International ...

 Jun 26 2016 - UAE- Ajman Chamber organises 4th diplomatic forum and discusses economic cooperationEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) AJMAN, 26th June, 2016 (WAM) -- The Ajman Chamber of Commerce and Industry, ACCI, organised the 4th edition of its annual Ramadan Diplomatic Forum aimed at ...

 Jun 26 2016 - UAE Space Agency and Lockheed Martin partner to train next generation of UAE national space talentEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 26th June, 2016 (WAM) -- The UAE Space Agency has signed a Memorandum of Understanding, MoU, with Global technology leader, Lockheed Martin, to ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help