The postponement of the World Expo is another blow for Dubai

Text by: Nicolas Keraudren Follow

Since the start of the health crisis, many international events have been reported. The Dubai World Fair, which was originally scheduled to kick off on October 20, 2020, is no exception. The international fair will therefore be postponed for a year. An inevitable postponement in the current health context. It is also a blow to the economy of Dubai.

Publicity

The information is almost official. The Executive Committee of the International Exhibitions Bureau (BIE) indeed announced this Monday morning that the resolution expressing the postponement of Expo 2020 Dubai obtained the required majority of two thirds of the member countries. The Universal Exhibition was originally scheduled to be held from October 20, 2020 for six months. It should finally take place from October 1, 2021 to March 31, 2022.

An inevitable postponement

The announcement of this postponement was inevitable. In the United Arab Emirates, more than 14,000 positive cases and also more than 100 deaths linked to Covid-19 have been recorded by health authorities. The disease is also experiencing constant progression in the country since more than 500 cases have been recorded daily for a week.

This decision was therefore welcomed by the Secretary General of the BIE, Dimitri S. Kerkentzes: “  I applaud the rapid response from the Member States of the BIE. Their support for the postponement of Expo 2020 Dubai - which will be officially approved on May 29 - is a renewed sign of solidarity and demonstrates the common will to work to "create the future"  .

Sheikh Ahmed bin Saeed Al Maktoum, president of the High Committee of Expo2020, also welcomed this report: “  We welcome the decision of the member states of the BIE (…). We are grateful for their continued commitment to contribute (…) to shaping a post-pandemic world at the most opportune moment  . ”

The emirate, which invested billions to organize the international fair, nevertheless hoped to profit from the Universal Exhibition.

Shortfall

A report published a year ago by the British cabinet EY predicted economic spinoffs until 2031. In total, the Dubai World Expo was to contribute 33.4 billion dollars - just over 30 billion euros - to the country's economy. Expo 2020 was also to support the creation of around 50,000 jobs per year over the same period, and to contribute 1.5% of annual GDP per capita during the six months of the Expo.

In addition, the organizers of Expo2020 hoped for 25 million visits in six months, including around 15 million unique visitors. The vast majority of these visitors come from foreign countries. However, tourism is an important financial resource for the city-state. Last year, the emirate welcomed 16.8 million tourists, contributing about 38 billion euros to the local economy.

Dubai, which learned of its nomination for the organization of the Universal Exhibition in November 2013, will therefore have to wait another year. Another blow.

An economy already shaken

Because its economy is currently hit by the consequences of the epidemic of the new coronavirus. In recent weeks, several economic and financial analyzes have also highlighted the difficulties that the Dubai economy could face.

That of the firm Moody's is the latest to date and alert: "  The sectors likely to be the most affected by the pandemic represent more than half of the GDP of the United Arab Emirates (...) and an even larger share of that of Dubai  " .

Last month, the city-state was indeed idling because of the containment measures decided by the authorities. The majority of businesses and restaurants had closed to stem the spread of Covid-19.

Their reopening, like that of shopping centers, was announced on April 24. The emirate is also preparing to welcome tourists again from July.

Newsletter With the Daily Newsletter, find the headlines directly in your mailbox

Follow all international news by downloading the RFI application

• United Arab Emirates
• Coronavirus
• Economy

On the same subject

Coronavirus: Dubai's largest shopping center reopens