Expo 2020 postponement shockwaves : A TFT Analysis
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The postponement of Expo 2020 Dubai to October 1, 2021 – March 31, 2022 is approved by the The Bureau International des Expositions (BIE) with the change of dates having surpassed the required two-thirds threshold. A TFT Analysis on Economic Impact of the postponement
Dubai which had defeated Istanbul and Moscow to secure the right to hold EXPO 2020, saw its US$ 10 billion investments as an opportunity to rebrand the emirate as a regional economic hub which was to bring back $33 billion to it’s economy and spotlight as a commercial, investment and tourism hub for the Middle East and North Africa (MENA) region.
The postponement is sending shockwaves to the UAE economy as the Expo was expected to attract 25 million visitors from around the world with more than 200 participants including nations, multilateral organizations, businesses, and educational institutions.
Being constructed on a vast 438-hectare site located south of Dubai- being connected to the main city by a metro line and an additional network of roads, The cost of construction of the Expo have been estimated at around US$7 billion so far.
The postponement of the Expo is likely to spiral down the UAE economy, which is already being hugely impacted as oil prices have declined as a result of the pandemic and a price war with Russia.
Expo 2020 intended to contribute to new business generation, GDP growth and job creation across the region will remain on a pause till we see the world post COVID 19.
The country which had resolved to support a sustainable, resilient and diversified economy – a key outcome of UAE Vision 2021 remains on standstill till the impact of COVID 19 gets diluted and the Expo 2020 begins new chapter in 2021.
UAE is India’s second-largest trading partner with a bilateral trade of over US $ 60 billion; an Indian diaspora of 3.42 million sends $ 17 billion in remittances; it is a major partner in our energy security; its sovereign wealth funds are big investors into India; and the political relationship between the two countries is exceptional.The India Pavilion, which was to be a permanent Indian Exhibition Centre, post the Expo 2020, was coming up on an extra-large on more than one acre plot, prominently located adjacent to US and Japan and across from UAE’s own pavilion. A dedicated team from the Federation of Indian Chambers of Commerce and Industry (FICCI) had been working under the oversight of Minister for Commerce, Industry and Railways to work with India Inc and our states to put our best foot forward.