Dubai will see at least a 1.5 percentage points per year addition to its gross domestic product (GDP), as a result of its hosting the World Expo in 2020, according to a report from the Institute of International Finance (IIF).
While the IIF predicts that Dubai’s debt will rise from US$142 billion in 2012, to around $168 billion by 2020, the debt-to-GDP ratio is expected to decline.
In a statement following the report, IIF Deputy Director, Garbis Iradian, said it was anticipated that Dubai will receive some Federal and Abu Dhabi government support regarding Expo-related expenditure.
“This support could be in the form of extending a significant portion of the debt maturities falling due in 2014-2017. There is large bunching of maturities in the coming two years, including a $20 billion facility for the Government of Dubai maturing in 2014, and about $10 billion of debt maturing in 2015 related to Dubai World’s debt restructuring of 2011,” said Iradian.
Following the announcement of Dubai as the 2020 host city, the Department of Tourism and Commerce Marketing (DTCM) has said it anticipates over 25 million visitors between October 2020 and April 2021.
It is further anticipated that 70 per cent of the influx will come from outside of the UAE – signaling extra revenue for airlines – and DTCM also expects Dubai’s inventory of hotel and apartment rooms to double over the next seven years.
DTCM’s director general HE Helal Almarri said: “The impact on the tourism industry will be substantial…a number of sectors will benefit, including construction, engineering and transportation, and of course the hospitality, retail and aviation sectors will experience a significant positive impact.”
ANOTHER YEAR, ANOTHER WORLD RECORD
Dubai saw in the New Year in explosive style and in the process blew away the world record for the largest ever fireworks display.
On New Year’s Eve, Guinness World Records have confirmed that the emirate ignited more than half a million fireworks. On the Guinness website it is being reported that the display was “Ten months in planning, over 500,000 fireworks were used during the display which lasted around six minutes, with Guinness World Records adjudicators on hand to confirm that a new record had been set.”