The emirate’s authorities awarded 47 construction contracts for major Expo 2020 projects.
Dubai’s active preparation for Expo 2020, the most important event of the decade, which is about to define the city’s visage for coming years goes ahead of schedule. The Expo 2020 Bureau in charge of the event announced that it would spend AED 11 billion (USD 3 billion) this year to create basic facilities for the World Exhibition. This is an estimated total cost of 47 new contracts awarded to the site master developers and private companies responsible for construction of main pavilions and all the necessary infrastructure units in Dubai South area, designated to host the event.
Contracts awarded imply the third major infrastructure works package, as well as three Thematic Districts where most of the pavilions will be concentrated. Another batch of contracts was awarded for creation of temporary architectural compositions and structures to be built only for the time of the event. AED 360 million more will be spent on related services covering everything from merchandising to event-management and legal support.
It is expected that preparations for Expo 2020 in Dubai having entered the active phase, with awarding the bulk of construction contracts will stimulate investment activity in the emirate and will become a catalyst for buying activity upturn in the housing market.
Tim Fox, Emirates NBD’s chief economist and the head of research, said: "Construction is likely to be a key sector driving the UAE economy this year, with preparation for Expo 2020 one of the main reasons we are expecting overall growth in the economy to recover from an estimated 3 per cent rate in 2016 to 3.4 per cent in 2017."