With Expo 2020 around the corner , many wonder what is going to happen. You might have come across a lot of articles online that talk about what is going to happen during the expo 2020. The real question for many entrepreneurs and businesses is what next?
In this article we give you an insight about the opportunities before and during the Expo 2020 and which industries will continue booming post EXPO 2020.
What is an Expo?
Many new business in Dubai before or during expo will make use of this world mega event to boost their start up and benefit from a great brand exposure. But many have come to ask what the world expo is to begin with?
The expo is a world-wide event conducted over a certain time frame in a particular country to host other countries enabling them to showcase their economic progression, achievements and opportunities on a single exhibiting platform. The ultimate goal for an expo is to raise public awareness and ongoing innovations fostering economic development and cooperation’s. Participation is open to companies, international or private organizations as well as general public.
History of Expo
The first ever expo that the world has witnessed was in 1851 in London at the iconic Crystal Palace. Since than most expos have been held across the world with majority of them taking place in either Europe or Americas.
Dubai Expo 2020
Expo 2020 will be the world’s first expo to happen in the Middle East, Africa and South Asia, serving an area of 438 hectares. With a collective population of nearly 3 Billion people and a GDP of more than 7.4 trillion, this will be the first expo to be close to home to many who had no previous access. This will result in a massive and huge impact on the entire region. Especially for entrepreneurs who are planning to open business in Dubai.
The theme of Dubai expo 2020 is “connecting minds, creating the future”.
Impact on New Business Setup in Dubai
Since ever Dubai won the bid to host the World Expo 2020, the emirate experienced an increase of 4% in the stock market index shooting to 3000 points for the first time compared to the recession in 2008. The Expo 2020 in Dubai is anticipating over 25 Million visitors out of which 70 % will come from outside the UAE. This is in itself means good news for entrepreneurs who are starting a company or are planning to have their start up in Dubai to reap the benefits of the expo.
The figure of anticipated visitors alone speak how UAE is welcoming the international market to do business in Dubai. Significant trends have been seen across various sectors as more people means a massive rise in the end consumer service demand such as hospitality and leisure, food and beverage business, restaurant and cafes , health care and clinic setups , travel and tourism, retail and e-commerce business setup, real estate sector, transportation etc.
This in turn also has a good traction for the supply chain industry to meet the up and down stream link to ensure the flows of products, services, finances, or information from a source to the customer.
Over the next few years, major infrastructure and real estate projects must demonstrate how this investment will be leveraged post-Expo 2020 through sustained demand creation and legacy planning.
Opportunities before, during and after the EXPO 2020
PRE-EXPO 2020: Starting a company in Dubai before the onset of EXPO 2020
Real Estate & Construction:
The Expo 2020 is bound to attract millions of visitors, which means more space for housing would be required. From hotel accommodations, apartments and residential space to new offices, Entrepreneurs and companies entering the market even now, will make it worthwhile to meet consumer demands. More and more companies are being setup to meet the rising demand for midscale space.
Human Resource & Talent Sourcing:
With new business setup in Dubai every day, the onset of the EXPO 2020 will create a rise in the job market demanding for skilled and unskilled labour. This would also mean that more Human Resource and Talent Sourcing companies would be in demand to fulfil the market needs. Setting up an HR company or manpower supply company in Dubai goes through a complex process of incorporations and approvals, however with expert business consultants in the market and the necessary documentation and capital, the process becomes smooth.
Consulting and Advisory Firm Company Setup in Dubai
Before the onset of Expo 2020, and with more and more businesses entering the UAE market, there has been a constant rise in the market for qualified business setup consultants in Dubai to assist in the company formation process and offer company registration services.
Dubai Business Advisors, for example, since 2002 continues to provide complete business setup services including market research, business modelling, IP and brand protection while advising entrepreneurs and how to set up a company in Dubai. Especially many people have shifted their focus on setting up their company in a freezone such as Dubai Airport Freezone, JAFZA and DWC.
However, if you are looking forward to establish a management consulting firm, many prefer the mainland business setup option in order to deal with the local market as well. In either case, starting a consulting firm in Dubai now is ideal.
Company Setup in Dubai during the EXPO 2020
As had mentioned earlier the EXPO 2020 will expect over 25 Million visitors, meaning the hospitality industry will benefit the largest from this mega event.
Not only would it cover more space to accommodate visitors but would experience an influx of F&B company setup in Dubai as well.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and UAE Vice President and Prime Minister approved the Dubai Tourism strategy vision in May 2013.
This involves broadening Dubai’s offering in events, attractions, infrastructure, services and packages and making it appealing to a wider audience. The strategy will focus on three prime objectives:
- Maintaining market share in existing source markets
- Increasing market share in markets with high growth potential
- Increasing the number of repeat visits.
As part of its thematic tourism services, Dubai offers visitors Desert tourism, Cruise tourism, Green tourism, Halal tourism, and Medical tourism. With plans to build 22 hospitals attracting over 0.5 Million Medical Tourists a year, Dubai Health Authority will boost its economy by up to AED 2.6 billion by 2020.
Travel and Tourism
Travel and Tour operators are currently at the peak of business in Dubai to meet the demand of visitors during the EXPO 2020. With many offering exciting packages, this industry has largely been able to benefit from digital marketing campaign to attract millions of tourists every year.
Print & Packaging
Since the hospitality and F&B sector would require a continuous supply of packaging and print materials, the print and packaging sector in particular will also benefit. A company providing printing and packaging service at this time would be ideal. There are various types of printing business that entrepreneurs may wish to consider depending on the niche that they are going to serve. In whatever case , if you start a printing company, integration of advance and trending technology such as laser printing , Nano graphic and digital printing, Digital inkjet printing will help you as an entrepreneur become successful in the Dubai Market as there has been a steady drop in the offset printing side. Therefore , in whatever case and no matter how big or small you plan you venture to be, a market research will always help you understand what need of the market needs to be addressed and how could you successfully establish your business.
Media and advertising
Since entrepreneurs have started your business in Dubai to reap all the benefits you also require a little boost through advertising your business. Earlier people would outsource their digital marketing and advertising work to companies based in India. However, medium sized businesses are reaching out to local advertisers due to increased trust level.
Retail Sector and Logistics
Due to the rise in demand of increased visitors during the expo 2020, the retail sector will flourish tremendously alongside with the logistic and supply chain sector ensuring that the flow of goods and products from the source to the customers is supplied efficiently. This means more warehouses, fashion outlets and retails shops, supermarkets and grocery stores as well as drop ship business will start in Dubai.
Post Expo 2020: Which Top 4 businesses and industries will continue to benefit?
Although most of the business will continue to run smoothly even post expo 2020 owing the future vision of the UAE economy in totality, we have identified top 4 industries that will continue experiencing a booming rise.
Tourism in General
We all know that a fairly large share of contribution of Dubai’s economy GDP comes in from the tourism industry. With families spending their vacations, business men exploring the opportunities to even individuals coming for medical and cosmetic treatments have favoured Dubai as a top destination.
With a well-defined and thorough tourism strategy along with the continued efforts of the Government, UAE was ranked 24th in the 2015 World Economic Forum report. As per official statistics from the Dubai Government , the total contribution was AED 159.1 billion (USD 43.3 billion) which is 12.1 per cent of GDP.
It is forecasted to rise by 4.9 per cent per annum to AED 264.5 billion (USD 72 billion) which would be 12.4 per cent of GDP in 2027. The sector also makes up of 10.4 per cent of total employment which was 617,500 jobs. This is expected to rise by 2 per cent per annum to 770,000 jobs in 2027 which would be 11.1 per cent of total jobs.
Overall, Dubai in the first quarter of 2018, has been able to attract over 8.1 Million visitors and seen a significant jump of 12 % from visitors in Germany and 18 % increase of visitors from France. The top five source market include India, KSA, UK, China and Russia.
The main success factor were due to incentives on the visa arrivals and aggressive Digital Marketing campaigns across various markets.
Travel and tour operators as well as tourism companies continue to setup their business in Dubai.
While most of the travel and tour companies are actually offline businesses , e-commerce businesses in Dubai that operate sites such as Kayak, Skyscanner and MakeMyTrip have been able to hugely benefit from this ever green industry.
Professional Service Sector:
The professional service sector was, is and always will be at the forefront of the economy of Dubai as business continue to enter the UAE market. Dubai has been known to be the gateway to the world owing its strategic location and making it a top business destination even post expo 2020. Many businesses will start shifting their focus on the UAE 2021 and future vision plans.
In a report published by UAE Central Bank it was particularly mentioned that the banking industry is the 3rd largest contributor to Dubai’s GDP and is expected to grow further with increasing level of economic activities. The key indicators of the banking and financial sector in the UAE have seen a positive growth and are expected to grow further due to the Government’s expansionary policies and planned investments ahead of the EXPO 2020.
Adoption of technology and innovation such as FinTech and Blockchain in banking and financial services are expected to improve the efficiency of the services and prevent theft of information and fraud activities. FinTech 2020 is an event by the Dubai International Financial Centre (DIFC) which brings together the financial institutions and technology providers.
The trading sector in UAE accumulates a total of 28.4 per cent of Dubai’s GDP. Dubai has always been focused on economic diversification supported by government-backed investments along with ease of doing business owing regulatory framework and a successful freezone model in the region
The ‘Dubai Chamber Traders Outlook Survey was presented in a recent seminar conducted at Dubai Chambers and attended by traders and representatives from the local business community. The survey signified the robust growth of the trade sector in Dubai and how it will continue growing.
According to the survey, traders of household goods were most optimistic about their performance in 2018, followed by those operating in the machinery, consumer goods, and textiles sub-sectors
Exporters in UAE will specifically be benefitting in the trade and export of aluminium and articles, ships, boats, floating structures, organic chemicals, manufactures of straw and basket ware, precious metals and stones, as these products are anticipated to constantly create a rising demand in the markets of South American . This optimistic outlook encourages trading company especially in the Mainland where licensing for new businesses is handled by Department of Economic Development.
Brazil was identified as the top market in South America in terms of the number of high RCA products for UAE exports, followed by Ecuador, Peru, Guyana, Paraguay and Argentina
- Oil Sector Trading
Although UAE is driven away from being an oil based economy and becoming a non-oil trade hub, the oil sector will still be seen as a major sector for trade, with petroleum products accounting to a forecasted growth of approximately 40 per cent in merchandise exports in the decade to 2030.
2. Transport Equipment and Industrial Machinery Trade
While transport equipment will contribute 18 per cent to total import growth in 2016-20 and 15 per cent in 2021-30, while industrial machinery makes up 12-13 per cent of growth over the entire period.
According to a research conducted by HSBC, the exports of merchandize globally are expected to have contracted by about 3 per cent in nominal terms this year, while cross-border sales of services have risen 1 per cent in. HSBC predicts that the combined value of goods and services trade flows will reach $50 trillion by 2030till 2030 (Dh183.65 trillion).
Technology and AI sector: Gamification is the new trend
According to a source from Arabian Business the Expo 2020 is the first commercial customer to access 5G in the region. The Smart site plan that is supposed to create an ultra-advanced customer experience through the an integrated gamified digital payment platform to customisable mobility solutions and energy efficient smart building was also revealed
Artificial intelligence (AI) is now moving at a fast pace from imagination to actually being deployed to measure tangible outcomes.
According to a study by PwC, the adoption of AI solutions will increase the UAE’s GDP by $96bn by 2030. By 2035, says that other consulting giant Accenture, the finance ($37bn), healthcare ($22bn), and transport and storage ($19bn) sectors will see the biggest growth – and they’re all vital cogs in the UAE’s economic machine.
This gives rise to more and more companies that are likely to setup in Dubai to provide intelligent AI driven smart solution. Primarily IT Companies and Software houses will continue expanding in the region. These include especially AI driven insurance services, data analysis and traffic management solutions in sectors healthcare sector and customer interaction at banks, leisure facilities and government departments.
Overall the technology sector will see a significant shift in E-Commerce platform that harness the power of machine learning.
Trends for Business Setup post Expo 2020: What other Industries will expand?
The goal of the EXPO 2020 is to diversify and drive the economy from oil based from singular dimensional economy to multi-faceted economy. The EXPO 2020 is just the beginning of the UAE ultimate vision to become the world’s collective centre for International Trade and Development.
It’s one of the fastest growing cities of present world, which is shaping up through mostly non-oil based revenues of the country.
More Health & Wellness centres required to increase the Happiness Index
Dubai aims to become the happiest city in the world. Dubai has adopted a scientific method through the development of the happiness index with an aim to continuously improve the wellbeing and mental health of its residents including both local and expat community. This especially goes well with professionals and freelancers who are inclined towards starting a business in the Mental Health, Wellness and Life Coaching Sector.
MICE industry to continue experiencing boom
Dubai is leading the forefront as being the world’s top 20 business destination when it comes to meetings, incentives, conventions and events (MICE). The industry is anticipated at growth rate of 7 percent per year by 2020 and will surpass USD 1.39Billion. However, post Expo 2020 as well this pace will continue growing giving an unceasing outlook to the event management companies to come and set up their business here in the UAE.
Restaurant and Food Business will remain steady
Besides having an extremely business-friendly environment with a world-class infrastructure, Dubai also has been the epitome of culinary arts and international food chains and fine dining restaurants. As of the now, over 13,000 restaurants are operating offering a wide range of international cuisines to meet the demands of the diversified, multi-cultural community in Dubai.
Whilst tourism complements the restaurant business in Dubai, we predict that post Expo 2020, more businesses in the restaurant sector are expected to be established, serving the diversified needs of residents , who are staying longer and coming from varied regions. Ultimately more and more cafes and restaurants will be required to meet the never-ending demands of both tourists and residents.
Other Industries that will continue experiencing exponential growth include the education sector with more schools, colleges, training centres and specialized universities required to setup in Dubai and UAE in general. In addition there will be an upturn in the healthcare sector and research/innovation centres as well as well the retail sector. Various authorities are taking forward initiatives to help foster continuous innovation and development in the region including SRTIP (Sharjah Research Technology and Innovation Park) that is strategic partner of ADAM Global Network.
More specialized industries such as the renewable energy, clean water, bio fuel, Industrial automation and machinery, as well as niche technology sectors like augmented reality and artificial intelligence are expected to expand immensely as the government vision to progress in terms of becoming the world’s most sustainable and tech savvy country will continue providing support to industries wishing to enter or expand in the UAE region.
Company Setup with Dubai Business Advisors: Business Simplified!
Since 2002, our Dubai Business Advisors at ADAM Global (Dubai) have continued to maintain the legacy of providing up to date and trusted advice to both foreign and local entrepreneurs including clients from the industrial sector.
Our experts and advisors have worked with and advised some of the leading industry players in the region and have played a pivotal role in their business growth. Our client centric business model, in addition to our local expertise and extensive industry knowledge, consistently creates and adds value to our clients.
The aim of the company since its inception has been to simplify the business journey offering in-house bespoke service offering a single window solution to address corporate needs. These include but are not limited to;
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Whether you are an entrepreneur wishing to start your business in UAE, an SME, a wealthy international family, a multinational or an established blue-chip company: our highly sought and trusted advice will ensure you have everything you need to start or expand your business in Dubai.
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Blog Contributed by : (Marketing Team ADAM Global)