The COVID-19 crisis has brought the whole world to a standstill. The situation is similar in the United Arab Emirates. This pandemic has caused cancellation of all the key events, flights, large gatherings, and most of all, halted all major investments in the region. Furthermore, the Emirati authorities’ decision has come to postpone the Dubai Expo 2020 to next year; which can cause colossal investment losses to international and local businesses in the region.
Dubai’s real estate marketing has been suffering a lot since long. People were considering the world expo as a way to save the falling economy of Dubai. In 2014, the real estate market faced a 30 percent decline due to a drop in oil prices. This resulted in a decrease in the demand for real estate investment causing a huge loss to the economy. However, the postponement of the event has made sure that the slump will continue for another year.
Following the consequences, the city announced to host the biggest expo of all the time. It is going to be an event that none of the Arab countries ever hosted. This most awaited event was going to attract about 24 million visitors. Therefore, the authorities and investors have already spent billions of dollars on the development of this entire project. They enhanced the infrastructure and built new residential apartments and shopping malls. Moreover, the surprise improvement in the transportation sector was expected to provide the best of comfort to the visitors.
The Dubai Expo is a six-month long global innovation fair set to take place from October 2021 to March 2022. It is going to be the biggest one of its kind in the Arab World. Tons of tourists will come to the Middle East because of this upcoming Dubai Expo 2020. During this time the real estate sector is going to see growth. When the availability for the rental property in Dubai will get short due to the rapid increase in demand.
According to the experts, the Expo 2020 will help in shaping-up a post-Covid-19 world. The delay in the main event will allow everyone involved to cope-up with the ongoing Covid-19 crisis. All the participants can come-up with new strategies and solutions to deal with the greatest challenge of our time.
However, the biggest concern amid this whole postponing of the Expo 2020 still remains unanswered. Will the delay in the Expo be able to save the falling economy of Dubai? Currently, with the one-year delay the slump in the real estate sectors remains unaffected. According to different analysts, this slump in the property market can further decline by 11-12% by the end of 2020.
Right now, Dubai is at the brink of an upcoming economic crisis. Experts fear that even the upcoming Expo 2020 will not be able to cover this huge economic loss. Dubai currently has pending installments of its debt payments from 2009’s fiscal crisis which they have to pay soon. By the end of 2020, the estimated payment of debt due will be $9.2. It is going to rise to a massive amount of $30.6 billion by 2023.
Even Emirates, the state-owned airline, is facing an economic crisis. Recently, they had to fire 30,000 employees to cope-up with the economic crisis brought in by Covid-19. At present the economic situation around the world is still unclear. In these troubled times we can only hope for a bright future ahead. Let’s wait and see what Expo 2020 will bring for all of us in the UAE.