Introduction
The World Expo is a great exhibition event that was inaugurated in 1851, and was first held in London featuring events aimed at strengthening connections among countries as well as celebrating the cultural diversities of the world. The international event is held in a five-year interval for six months attracting millions of visitors with the aim of exploring and discovering exhibitions, pavilions as well as world’s cultural practices that are presented by either nations, business, or international organizations. This iconic event has been recognized as a catalyst for social, cultural and economic transformation since it greatly benefits the host nation, and particularly the city. The next upcoming World Expo edition will be held in 2015 in Milan, Italy. However, in 2017, the Adrian Smith + Gordon Gill Expo will be held in Astana, Kazakhstan before the 2020 World Expo. The event that features a collection of streamlined events and exhibitions assist in sharing popular culture as well as developing cultural integrations among the participants that learn from other counterparts and acquire support from professionals. In the history of this event, it has never been held in Africa, South East Asia, and the Middle East.
The World Expo 2020 Bids
The bids for the World Expo 2020 were unique since most of the contenders for the hosting of the event were cities that had never hosted the event in its history. Among the contenders included Russia's Yekaterinburg, Sao Paulo in Brazil, and Izmir in Turkey and the winner of the bid would host the event for the first time. The next World Expo will be held in Milan, Italy. The United Arab Emirates placed their bid with Dubai as the host city under the themes subdivided into sustainability (lasting water and energy sources), mobility (integrated logistics and transportation systems), and opportunity (new paths to economic development). The United Arab Emirates successfully won the bid in 2013 that has been viewed as a major economic, political, and social development.
The Dubai Expo 2020
After seeing off competition from other cities such as Sao Paulo, Yekaterinburg, and Izmir, Dubai successful won the bid in 2013 to host the world event in 2020. The HOK’s winning program covers an approximated 440 hectare of land in South-West Dubai neighboring Jebel Ali Port and the new Al Maktoum International Airport. According to HOK president Bill Hellmuth, the event will elevate Dubai’s status as a global city with world-class infrastructure as well as highlight its commitment to sustainable energy (Watts, p. 9). The Dubai Expo will be organized into three zones branching from a central plaza on the souk with larger pavilions positioned on the outer perimeter and the smaller pavilions positioned near the center (Watts, p. 9). This is aimed at ensuring that the visitors explore the whole site by visiting all the pavilions including the larger and smaller exhibitions stands.
The Consequences of the Event on Dubai and the Middle East
According to economic analysts, hosting the World Expo 2020 will increase Dubai’s Gross Domestic Product (GDP) growth, spending and debt (Augustine, para. 2). These analysts propose that the event will add at least one and a half percentage points every year to the host’s real gross domestic product growth between 2014 and 2020 when the event will be hosted. According to Institute of International Finance (IIF), which is an association of 450 global banks and financial institutions based in Washington, this would lead to an annual growth of 5.5 percent (Augustine, para. 2). According to financial projections of the Institute of International Finance (IIF), Dubai would spend close to $24 billion between 2014 and 2020 towards the hosting of the event. Nevertheless, most of these spending would aid the infrastructural developments of the Dubai 2020 vision. Considering the financial state of the host, most of these planned projects would be financed from additional borrowing, which Garbis Iradian, Deputy Director of Institute of International Finance believes would increase the debt that is already high (Augustine, para. 4). This financial institution projects that the Dubai debt, which was last assessed at $142 billion in 2012 before winning the World Expo 2020 event would increase to $168 billion in 2020 (Augustine, para. 6). Nevertheless, considering the resulting increase in the gross domestic product, the debt ratio would drastically reduce from 106 percent of the GDP in the former year to 70 percent of the same in 2020. Nevertheless, considering the developments expected at the event, Dubai would have paid most of its debts by 2025 with the debt ratio reducing to 60 percent of the gross domestic product and even to lesser amount in the subsequent years. The sectors such as tourism, hospitality, trade, logistics and shipping as well as real estate are some of the potential beneficiaries of the Dubai Expo 2020 since most of the events would directly interact with these sectors. The employment rates in Dubai are estimated to increase with about 80 percent into different sectors of the economy.
The event would heighten Dubai’s social development because of the variety of guest expected to turn out at the event. The event that usually last for six months features visitors from about 200 countries of the world. Most of the population in Dubai comprises foreign inhabitants with about seventy percent of the probable 25 million visitors to the event originating from different countries outside the United Arab Emirates. According to projections, the Dubai’s population would increase by 7.5 percent between 2014 and 2020 with most people coming into the city to put up investments in anticipation of the event. According to Manoj Nair, a Gulf News reporter, the Expo 2020 effect on Dubai is already starting to show up especially in land values (Nair, para. 4). Nair indicates that following the announcement of the win in 2013, the asking prices at some of the emirate’s emergent freehold master-developments have greatly appreciated (Nair, para. 5). At the Dubai World Central, which comprises a huge part of the Expo 2020 infrastructural development site, the prices have increased from Dh90-110 a square foot to Dh130-150 a square foot (Nair, para, 3). Other areas such as Mohammad Bin Rashid City have experienced increases ranging up to Dh 300 from the previous Dh 120 in 2012 – 2013. However, these asking prices are not discouraging the potential buyers. Research has proved that most of the buyers of these plots in the strategic places comprise a higher percentage of foreign investors. The event would eventually leave the city a more culturally diverse city with more opportunities for development.
Political stability is paramount for the hosting of word forums. In the recent decade, there has been political unrest in the Middle East countries such as Yemen, Iran, Afghanistan, and Syria among several other nations. Nevertheless, in order to successfully host the World Expo 2020 in Dubai, these political differences must be harnessed, thereby stabilizing the political terrain in the region. The event will ensure that the political tensions between the Middle East countries and African nations such as Egypt and Western countries such as the United States get lasting solutions. The Dubai Expo 2020 leads to international integration and recognition of Dubai and the Middle East, not only as a politically unstable territory, but also as a potentially productive region that can bring the world together. This would eventually lead to the increasing need to political conflict resolutions since more partners would be willing to contribute towards ensuring that the event is free from political interference. According to political analysts, these political interventions would go long into providing solutions to the political instability experienced in the region. The theme "Connecting Minds, Creating the Future" provides the best description of the event and its political impacts on the Middle East region since it is aimed at connecting different nations of the world towards providing a brilliant future for the Middle East and the whole world. Nevertheless, critics argue that the event might cause more political instability in the region since most countries would be competing for space for exhibition and trade with the less privileged nations picking issues with the countries that would get larger allocations.
Conclusion
The World Expo is an international event that has been in existence for about 160 years, and has helped develop the political, social, and economic spheres of the hosts. The next upcoming World Expo will take place in Milan, Italy in 2015. However, in the History of the World Expo, it has never been held in the Middle East, South East Asia, and Africa. Dubai successfully won the bid to host the event in 2020. The event that will feature more than 200 countries of the world is aimed ensuring that the city experiences similar political, social, and economic transformation. Among the contenders for the 2020 host includes Sao Paulo in Brazil, Russia's Yekaterinburg, and Izmir in Turkey, which would have also hosted the event for the first time if they had won their bids.
This international event has several consequences to the Dubai’s economy. Currently, there have been different effects such as the increasing costs of construction since the asking prices for land has increased in strategic places that will host the event. The sectors that stand to gain from the Dubai 2020 Expo include the tourism, hospitality, trade, logistics and shipping as well as real estate. Employment rates as well as production will also increase. Consequently, these developments would result into an increased gross domestic product. However, the Dubai’s debt, which is already high would increase resulting from the borrowings aimed at funding the Dubai Expo 2020’s projects. Nevertheless, economic analysts project that the debt-GDP ratio will reduce from 106 in 2012 to 70 percent of the gross domestic product in 2020, and even lesser in subsequent years.
Political development is also a resulting consequence of the Dubai Expo 2020. The event exposes Dubai to the international community thereby inviting efforts to harness the political unrest in the Middle East. This would provide a lasting solution to the political conflicts within the Middle East and between countries of the Middle East and Africa and the West. Finally, the event is a socially interactive encounter that unites several people from different nations of the world thereby integrating the cultures from different territories. The event displays popular cultures that are consequently learned by other nations. Most importantly, the preparations for the event will help in realizing the Dubai Vision 2020, and the infrastructural developments will serve to the benefit of Dubai.
Works Cited:
Augustine, Babu Das. “Expo 2020 ‘will raise Dubai’s GDP growth, spending and debt’.” Gulf News. Web December 5, 2013
Nair, Manoj. “Dubai’s realty already feels Expo 2020 boost.” Gulf News. Web December 25, 2013
Watts, Mark. "Dubai Wins Right To Host Expo 2020." MEED: Middle East Economic Digest 57.48 (2013): 9. Business Source Complete. Web. 30 Dec. 2013.
