Dubai: A Dubai Expo will result in a sustained period of opportunities for construction companies already well-established throughout the UAE.
The key factors that will make it successful for the construction sector relate to the significant investment in facilities and infrastructure required to stage the event and the sustained legacy benefits post 2020 — principles already outlined by the Dubai leadership [and] which in many ways reflect those set for London 2012.
These factors are:
* Venues will be built and remain in place after Dubai Expo, as they are underpinned by a solid business case. This represents a key vote of confidence in the legacy of the Expo and will act as the catalyst for further development opportunities.
* Visitors will spend their time participating, not commuting. The commitment to deliver world-class transport infrastructure to the venue will result in immediate civil engineering opportunities for established contractors, and strong potential for development growth around newly created transport hubs.
* Showcase Dubai and UAE on a world stage: The already established buildings and heritage of Dubai and Abu Dhabi will provide a backdrop to the Expo that will be second to none. In the run up to the event, there will be numerous projects involving delivering temporary Expo Event architecture (or overlay works) to the existing buildings and venues in Dubai and the region. In short, rebranding all of Dubai for this major event.
* Regenerate and accelerate the future development of the Dubai World Central (DWC) area, which will continue after Expo as the sustainable trading hub of the region. The Expo will result in immediate sustainable development around Dubai World Central (DWC) across commercial, residential, hospitality and retail as the area absorbs the increasing population of Dubai.
These principles will result in local construction companies investing and strengthening their businesses for the future and moving forward with confidence. The projected increased population means residential demand will come from end-users and associated services will grow in line with their expectations.
The forecast number of visitors to Dubai, coupled with the Expo, has already resulted in a confident planned investment in the refurbishment of current hotel stock, along with exciting plans for numerous new hospitality projects.
Abu Dhabi can also benefit from the plans for Expo 2020, as the city moves forward more confidently with its ambitious museum and cultural centre projects. Visitors to Expo will also have the opportunity to take in the new Abu Dhabi-based cultural destinations and land marks.
Established construction companies can look forward with much greater optimism and renewed confidence, more than at any time over the past five years.
— The writer is the Dubai-based managing director of ISG M.E.
