How Expo 2020 Impact the SMEsKWSME
The city of Dubai made a significant advancement in global economic forum by winning the bid to host hugely significant Expo 2020. This will be the first time that Expo 2020 will be hosted in Middle East, North Africa and South Asia (MENASA) region. Expo 2020 in Dubai is considered to be the first Expo in which majority of visitors will come from foreign destinations. Over 25 million people are expected to attend this glorious event.
The original theme of Expo 2020 is strength of partnership and collaboration in creating new path for development and innovation. Public and private sector collaborations will take place during the planning and implementation phase of Expo 2020. The site of the event is designed with the underlying objective that Expo 2020 will produce solutions based on theme of mobility, sustainability and opportunity.
Expo 2020 is considered to be one of the greatest opportunities for one particular sector especially i.e. SMEs (Small and Medium Enterprises). Dubai remains its position in the world as a commercial hub for trade and SMEs constitute to more than 90% of registered businesses in Dubai. According to statistics released by Dubai SME, SMEs contribute 42% in Dubai’s total employment and produce 40% of gross value addition. It is expected that hosting Expo 2020 will generate gross value addition of AED 71 billion.
Amongst 4,633 companies which have registered themselves on Expo 2020 electronic platform, 32.7% comprise of SMEs. Expo 2020 in Dubai is an ideal platform for SMEs to be more creative and expand themselves. SMEs play key role in success of this whole event. In such a diverse and competitive environment, the challenge is to stay ahead of everyone else.
Also as a result of Expo 2020, the investment environment of UAE has risen sharply. Around 8.8 billion US Dollars will be spent on developing Dubai infrastructure and on facilities required by this event. This provides huge opportunities for SMEs especially in construction, transport, tourism and hospitality categories. Consultancies will also provide their expertise for planning and implementation of Expo 2020.
Perhaps the key to Dubai business success is partnership. Boosting the relation between public and private sector will develop business community further and improve Dubai’s competitiveness. This type of partnership between public and private sector will enhance SMEs and bring economic growth. SMEs contribute to 60% non-oil GDP and 86% to private sector employment. A regulation has been passed in support of SMEs which says that 10% of government contracts will be given to SMEs. According to a recent survey, UAE has been recognized as world’s 2nd most business friendly government; hence we anticipate more programs to boost public-private partnerships between SMEs.
Opportunities for SMEs in Expo 2020
Large scale companies such as Meraas, Emaar, Nakheel, Dubai Properties and Damac will create large scale projects. Some of these projects include expansion of Metro Red Line Dubai, new forecourts at Makhtoum International Airport, interchange on Sheikh Mohammad bin Zaid road and formation of Expo 2020 site. These projects provide immense opportunities for SMEs and it is forecasted that the event will produce 300,000 direct new jobs and 1 million indirect business opportunities.
Small and Medium Enterprises can utilize this opportunity by,
- Foster and boost relationship with clients and customers.
- Create competitive edge for themselves
- Focus on business development
- Be competitive on their pricing and brand value
- Make sure to possess required resources
Expo 2020 in Dubai is deemed to be once in a lifetime opportunity for SMEs and business owners have a chance to represent their country to millions of visitors bringing exposure to UAE business and show their strength and quality of service. SMEs should look forward to multiply their consumer base from locals to international clients. Along with hospitality, tourism, construction, retail, wholesale and transport businesses, food and beverage sector will also receive a significant impact so SMEs should look forward to explore these areas which will eventually enhance economic growth of UAE and the region.
If you need further information on opportunities for SMEs in Expo 2020 Dubai or you want to establish you own small and medium enterprise, KWSME offers best business setup solution for new start-ups. We have ample experience in this industry and are among st the best consultants across UAE. Contact us at KWSME for further guidance.