Dubai: The exhibition industry is the engine driving Dubai’s economy, according to Michale Dehn, Group Exhibitions Director of Messe Frankfurt.
“The exhibition business in Dubai contributed to the economic growth by five per cent and has enough room to grow further as well as help diversity of the economy,” he told Gulf News in an interview.
In general, the exhibition industry has a direct impact on the economy as a facilitator for all businesses bringing all parties under one roof, Dehn said.
“Moreover, the direct expense of the participant including, travel, fright operators, hospitality sector, transport sector, retail sector and others, will definitely energise different business sectors,” Dehn said.
While all these will directly benefit the economy overall, the indirect benefits are much larger, according to Dehn.
“Whenever we run an exhibition since we moved to Dubai 11 years ago, we noticed that a lot of businesses have moved to Dubai market after experiencing the potential here,” he said.
Different markets
Between 2003 to 2008 a lot of distributors participating in the shows, including big European companies, set up their own offices in Dubai as regional headquarters not only for GCC but for the Middle East.
“The power of the location of Dubai market has enabled these businesses to expand their responsibilities in different markets, mostly Africa,” Dehn said.
Satish Khanna, General Manager, Al Fajer Information and Services, told Gulf News that world class infrastructure, connectivity and openness has helped in developing an advance exhibition business across the emirate.
“The current boom in the exhibition business definitely contributed to the overall economic growth but it will show further development in the coming years.”
Challenges
While Dubai is very energetic in developing the concept of exhibition industry adding to these its accessibility and exposure to other markets, developing new exhibitions is not an easy task, Dehn highlighted.
However, he added there is a room for further growth in certain businesses segment in Dubai citing the example of logistics industry.
“Loading, unloading and warehouses are the back bone of the business market in Dubai,” he said.
Messe Frankfurt is organising Materials Handling Middle East 2013 exhibition next month to put emphasis on Logistics Service Providers.
The UAE logistics industry is set on a high growth path, spurred by the huge amount of infrastructural and commercial projects either already underway or in the pipeline. According to estimates by consulting firm Frost & Sullivan, the UAE logistics industry is expected to be worth Dh36.95 billion ($10.06 billion) by 2015.
Expand show spaces
Al Fajer’s Khanna added that the exhibition industry will experience further growth in the next five years, however, Dubai needs to expand its show spaces to cope with the growth. He pointed out that while exhibiting in Dubai is expensive, the returns are higher.
“Via Dubai’s wide array of business, sports and entertainment activities that are lined up through the year, its exhibitions and event management industry has been witnessing its busiest seasons ever in 2013,” Saleh Tabakh, General Manager, Plan Ahead Events, Middle East, said.
He added that the emirate is by far an ideal venue to host meetings, incentives, conferences and events.
Highlighting how the exhibition business is a growing one in Dubai, he said: “The growth is dramatic and exponential, and is becoming vertical as specialisation is winning the battle in the new world of exhibitions.”
