Dubai Expo 2020 could lead to economic bubble

A recent poll revealed that Dubai’s win in its bid for hosting the World Expo 2020 could generate another economic bubble in the UAE. Nearly 55% of the respondents of a survey shared their concern for Dubai’s economy post the Expo 2020. Only a quarter of them believed that Dubai’s economy was stable enough after the 2008 and 2009 crisis.

A set of respondents also believed that Dubai can increase its immunity by allowing simple procedures for starting a business. Respondents also believed that an increase in regulation of real estate and banks could make the UAE immune to a financial crisis. These results were obtained after a survey of more than 200 investment professionals was organized by the CFA Institute.

This news was published by the CFA Society Emirates even before the Bureau International des Expositions (BIE) announced that Dubai had won the bid. In spite of such a concern coming up, it was seen that approximately 95% of the respondents had supported Dubai’s vision for Expo 2020, while 97% of them had held a belief that the UAE will win the bid for Expo 2020 which eventually turned out to be true as well.

Just 4% of the respondents had been of the opinion that the Expo 2020 could burden the economy of the UAE and lead to another economic bubble such as the one seen in 2008 and 2009. Now that Dubai has won its bid for the Expo 2020, only time will tell if such a mass event will create an economic bubble in the UAE or no. Let’s wait and watch.  

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