Dubai: Dubai World Trade Centre (DWTC) said on Sunday its net economic value stood at Dh13.1 billion, creating a positive impact of 3.3 per cent of the city’s GDP in 2018.
Events at DWTC generated total economic value of Dh23 billion with a high Dh13.1 billion retained within Dubai’s GDP, representing an impressive leakage ratio of under 43 per cent for a largely import-based economy.
“2018 was a particularly noteworthy year that marked four decades of our accelerated journey towards accomplishing the aspirational mandate to make the emirate the global hub for regional business networking. Our investments and strategic efforts over this period are aimed at furthering DWTC’s role as a pioneering MICE platform, optimally positioned to connect developed economies with high-growth emerging markets across continents,” said Helal Saeed Almarri, Director General, Dubai World Trade Centre Authority and Dubai Department of Tourism and Commerce Marketing.
“Consequently, thanks to the incredible and consistent support we have received from our leadership, we have been able to sustainably unlock and elevate the MICE sector’s contribution to both, the UAE’s economic diversification agenda, and Dubai’s GDP in line with the Dubai Plan 2021. Looking ahead at 2020 and beyond, DWTC seeks to build on this strong business portfolio, as we pursue the vision to incrementally aid the development of a knowledge economy and self-sustaining entrepreneurial ecosystem,” he added.
DWTC activities grew its year-on-year socio-economic impact with nearly 88,000 jobs, generating an aggregate of Dh4.2 billion in disposable household income for residents.
The study, designed to provide data-backed intelligence on the impact of Dubai’s MICE sector to the city’s economy, analyses the performance of large-scale events, which are defined as those that host over 2,000 participants, and their contribution to the city’s economy, its growth and development. Four key metrics have been assessed: total spend at MICE events; other ‘direct’ spends in related sectors such as – hotels and restaurants, retail and recreation, air and ground transport, government, business services etc. – in addition to ‘indirect’ spends related to necessary production increases to meet increased demand; and the ‘induced’ value that results from higher employment and earnings.
The study attributed the record Dh13.1 billion in retained economic value for Dubai’s largely import-based economy to the performance of DWTC’s large-scale events, estimating that for every Dh1 (unit dirham) spent at these events, a further 4.4 times in sales value was generated for ancillary sectors and Dubai’s wider economy. Overall, Dubai’s MICE sector enabled Dh16.3 billion of direct economic output in 2018 – marking a 2% increase over 2017, driven by the surge in demand for goods and services. The nation’s leadership has consistently reiterated the significance of a burgeoning MICE sector, indicating that its success largely supports wider industries. Apart from direct revenue generated, the industry enables repeat visitation, industry progression through knowledge sharing, and inward investment into the economy.