The 2020 Dubai Expo is only a few months from its grand opening. The mega event is projected to be a massive success and will lift the country's economy to a far higher level. The Expo will be one of the most important events of its kind ever seen to date and is expected to provide the country with many jobs. The Expo will be covered by a record number of 170 countries, including the UK, the US, Germany, Sweden, Chile, and Nigeria. It is expected that global participation in the mega event will significantly boost the UAE’s credibility around the globe. With an expected financial increase worth $33.4 billion by 2031, the event will also improve its economic and cultural growth.
Dubai was allocated the right to host the grand event in 2013. The officials organising the event have since said that the event would significantly affect the Dubai economy and develop it. The event's effect is already showing with many opportunities already being generated in the Expo’s management and construction sector. According to the EY report, Expo 2020 is expected to create nearly 905,200 full-time jobs by 2031, with around 49,700 jobs expected to be completed each year during the period.'
Retail Industry in Dubai
Some of the largest retail markets, malls, grocery outlets, and shopping festivals in the world are situated in Dubai. There is no shortage of business opportunities; the city is the best place in the Middle East area to embark on any retail business therapy, making it a shopper's paradise worldwide. After London, Dubai is the only city considered the city for many top international brands with the most relevant market opportunities. The city has no shortage of global brands in its retail sector, comprising all high-end European brands for mainstream and local shopping outlets. As Dubai’s shopping industry contributes significantly to the UAE economy, the malls serve many clients every day; business investors do exceptionally well in the country's retail market.
To attract maximum visitors from all over the world, the two critical events that affect Dubai’s retail industry are hosted. The Dubai Shopping Festival, which takes place in January and February, is a mega event offering a wide range of significant discounts and sales. This vast event amounts to about 30 per cent of the retail industry's annual revenue. The Dubai Summer Surprises, which was launched after DSF's great success, is another major event in Dubai’s retail sector. From June to August, the Dubai Summer Surprises fest is held for three months and is attended by world-famous celebrities and artists to promote the offers.
Opportunities in the Real Estate Industry
This investment vehicle also offers some possible benefits for investors facing these potential hurdles facing real estate in the coming years. Here is just a partial list of factors that point to future opportunities for individuals investing in real estate:
1. Continued Job Growth
As national unemployment grows, unemployment has been below 5% for more than a year, which economists have traditionally considered a mark of "full employment." If this trend continues, it is a vital sign that more companies will need real estate, a possible boon to REITs invested in commercial assets such as office buildings, manufacturing facilities, and other facilities that house the company’s employees.
2. Rising Income
The median UAE household income rose for the second year in a row, as reported by the UAE at the end of 2017. Employee paycheck increases also result in more consumer spending, which can fuel more demand for manufacturing, retail outlets, warehouses and distribution centres for real estate, both of which may raise returns for REITs owning and running those assets.
3. Growing Population
According to a recent survey, millennials now constitute the largest living generation, with more than 75 million living members. If more millennials become autonomous, join the workforce and rent their own homes, it is expected that their sheer numbers will increase demand for many forms of commercial real estate, from multifamily residential properties to office buildings.
4. Continued Access to Funding
Commercial real estate is also supportive of the funding climate. A Federal Reserve report found at the end of 2017 that bank loans had become so robust for U.S. commercial real estate ventures that they exceeded pre-recession levels. The study states several factors leading to banks’ continued trust in UAE commercial real estate: low-interest rates, rising demand for apartment units, and the continued interest of foreign investors in UAE real estate. Funding accessibility may potentially help real estate managers add to and expand their property portfolios.
5. New REIT Opportunities with Low Minimum Investment Requirements
The advent of a new REIT group, non-publicly traded REITs that pool small contributions from many individual investors, has made REIT investments not traded on major stock exchanges accessible to ordinary investors for the first time.
A Smart Strategy For Investing In Real Estate
Several macroeconomic indicators indicate that the commercial real estate market can continue to enjoy strong fundamentals and steady growth. Users believe that buying into a diversified investment in real estate, spread over many commercial properties managed by a team of experts, is a potentially viable direction for some of your investment capital.
Future Prospects in the Retail Sector
The Dubai Expo 2020 will affect the country's companies and industries for the six months of the event and bring a new social development wave to the next decade. Companies in Dubai intend to benefit from the Expo for the next 10-15 years as well. This event will, therefore, go beyond the worldwide display of the most revolutionary innovations and futuristic inventions.
How Can Commitbiz Help You?
Starting up, a company would always prove a fruitful choice for any businessman. The desert land has a lot to offer in its region to upcoming companies and always welcomes new companies with open arms to its territories. Commitbiz is a business consulting company that intends to provide various business-related assistance to prospective investors. With all business-related questions and details, our team of experts is always keen to support business enthusiasts. Feel free to contact us for any business query; we would love to help.