The Dubai Expo 2020 is now only a touching distance away from its grand opening. The global fest will open a whole lot of opportunities for businesses developing in the country. Certain Small and medium enterprises (SMEs) will also get many benefits from the mega event.
Dubai took a giant step towards the growth of its economy when the city won the bid to host the highly anticipated and significant World Expo in 2020. The city will be the first in the MENA region (Middle East, North Africa, and South Asia) to host the global event at such a high level. Expo 2020 is expected to be attended by a large number of visitors and business authorities with the majority of them expected to arrive from foreign destinations. Over 25 million people are anticipated to show up at the glorious event; thus, the city is preparing the best to welcome all the visitors to the event.
The foremost aim for Expo 2020 was to provide the country with a boost in the business sector, economy and job opportunities. The event is expected to give strength to the businesses and making them collaborate and partner with new business opportunities in Dubai, thus opening a new route for their overall development.
Small and Medium Enterprises in Dubai
Small and Medium Enterprises (SMEs) in Dubai have a vast scope of development and rising opportunities in Dubai. The public and private business sector in Dubai will be highly benefitted from the Expo 2020 and will open the doors of opportunities for various SMEs developing in the country. The architectural environment for the event is built with the idea to be transformed in a future smart city District 2020. This stylish city will help SMEs and entrepreneurs in Dubai to grow and develop their business for the years to come.
The construction site of Expo 2020 is being designed to provide mobility, sustainability, and more extensive opportunities to businesses in the region. Although the Expo is set to provide benefits to the whole business sector in Dubai, the SMEs are expected to profit most from the event. Dubai is currently one of the best commercial hubs in the world for trading and business purpose and the small and medium enterprises (SMEs) in the city contribute to more than 90% of registered businesses in Dubai.
Research reports and statistics released by Dubai SME states that SMEs contribute to around 42% in the city’s total employment record and produce over 40% of the gross economic value of Dubai. The Expo 2020 is expected to induce more growth to the gross profit of Dubai by adding up to AED 71billion during the event. Over 4,600 companies have already registered for the Expo, and among them, 32.7% are SMEs which explains the importance of SMEs in Dubai’s business industry.
Expo 2020 in Dubai is the perfect base for SMEs to develop and expand their roots on the international level. The participation and involvement of SMEs are equally crucial for the successful completion of this event. SMEs may face a lot of competition, and diverse participation from various other businesses and the challenge for them will be to stay in the hunt for success among all the participants.
How will Expo 2020 Dubai Benefit SMEs?
The development and construction work for Dubai Expo 2020 has already attracted massive investments from companies around the world. Over 8.8 billion US dollars have already been spent on the infrastructure and facilities development for the event. The global investment will help related businesses to develop in the region and provide opportunities in the construction, transport, tourism, and hospitality sector.
Globally acclaimed as one of the most connected and tech-friendly destinations for business work, living and exploring, the land of deserts offers a whole lot of opportunities to businesses. Dubai is recognized as the 2nd most business-friendly place. Many large scale projects for Expo are set to be completed. These include expansion of the Red Metro line in Dubai, new forecourts of Maktoum International Airport, interchange on Sheikh Mohammad bin Zaid road and construction of Expo 2020 site.
Renowned companies like Meraas, Emaar, Nakheel, Dubai Properties and Damac are the prime contenders who are developing these large scale projects. These project investments are expected to create direct job opportunities in many business sectors with around 300,000 ground jobs and several other indirect business and job opportunities.
Keys opportunities that SMEs can take advantage of through Expo 2020 are :
- By promoting and developing bonds between clients and customers.
- Creating a competitive environment within the company
- Working on the development of businesses
- Developing a brand value and creating pricing awareness
- Maintainance of key resources for business
The World Expo always has a lot to offer for various businesses and concerned industries every time it is conducted in any city. The SMEs will have the chance to bring exposure to a global level through the Expo and increase their reach and consumer base on an international platform.
How can Commitbiz help you?
Dubai is considered as one of the best places in the world for business practices owning to its incredible infrastructure, tech-enabled environment, and a healthy business atmosphere. We here at Commitbiz helps business investors with all the concerned queries and issues to set up a business in Dubai. If you need further information on opportunities for SMEs in Expo 2020 Dubai or you want to establish your own small and medium enterprise, we offer the best business setup solution for new start-ups.
Feel free to contact us in any such case, and we would be glad to help!
How has Expo 2020 impacted small and medium enterprises in UAE?
More business opportunities are getting created in UAE for SME owners. In Expo 2020 45000 contracts were given out, of which more than 50% have been won by SMEs, which is equivalent to an investment of around AED 5 Billion (USD 1361248000), which will create 12000+ job opportunities.
Best retail banks for getting an SME business loan in UAE?
What are the SME development programs by Dubai Government?
Dubai SME 100
Launched for identifying the SMEs with great potential for grooming & nurturing them to become established businesses.
Corporate Governance For SMEs
To promote corporate governance for early-stage businesses through seminars, forums, conferences, etc.
To help SME founders/ owners understand the issues that are not letting them get financing from the banks.
Which are the Top profitable sectors for small and medium enterprises in Dubai?
Manufacturing Sector (Food & Beverages)
Service Sector (Real Estate, Renting, Business Services, & Tourism)
Trading Sector (Consumer Goods, IT, Textile)
What are the gross margin ratios for SMEs in the manufacturing sector?
For SMEs, it’s around 30-40% of their revenues.
The net margins for SME businesses in the manufacturing sector are around 7 to 20%.