Legacy of Expo 2020 will be long term boost to Dubai

Key infrastructure developments like the extension of the metro red line, as well as the expansion of passenger traffic at the new airport, Dubai World Central (DWC), are likely to have knock-on effects for the area’s economic potential.

DUBAI // Hosting Expo 2020 could have long-term benefits for the area around the proposed site, analysts say.

Infrastructure developments, such as the extension of the Metro Red Line and the expansion of the new airport, Dubai World Central (DWC), are likely to increase the area's economic potential.

The Expo bid organisers also have plans to turn the pavilions at the 438-hectare site into a university, museum and conference centre.

The site could become a major centre linking the emirate to Abu Dhabi.

“It’s not like in some cities where they’ve used it to regenerate older parts of the city,” said Craig Plumb, head of research at Jones Lang LaSalle. “In Dubai’s case it’s a new area.

"What is important, and it's been a crucial part of Dubai's bid, is the legacy effect.

“The whole rationale for hosting the Expo is not just the benefits for the six months it’s on, but the longer term benefits that it will bring to the city.”

Mr Plumb said the plans to extend the Metro line and expand Dubai World Central would be sped up if the bid was successful.

“Both of those projects may go ahead anyway, but certainly the timing of them and the certainty of them will be ensured if they win the Expo,” he said.

“Clearly the intention over time is to move the capacity to the new airport, which will trigger new development like industrial and hotels.

“It’s never going to be the centre of Dubai but it is very well located to act as a hub between Dubai and Abu Dhabi. It’s going to be a key growth node between the two cities.”

A dossier on Dubai’s plans for the Expo shows the capital costs for the project are Dh26.1 billion.

The Roads and Transport Authority has said the Red Line would be extended anyway, but would need to be finished more quickly to meet demand for the Expo.

Events such as the Olympic Games are said to have long-term benefits for nations, but in some cases have cost billions with very little in return.

Mario Volpi, managing director of Prestige Real Estate, said there was a lower risk attached to Expos because pavilions were easier to adapt to other uses than sports stadiums.

“If they do it properly, then the legacy will be a very positive thing,” Mr Volpi said.

“In that case, they’re building for a reason, and not just a six-month exhibition.”

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