With Dubai winning the World Expo 2020 bid, the emirate requires around $43 billion (47 percent of the estimated 2013 GDP) to significantly upgrade its infrastructure according to a research report by Deutsche Bank.
This will boost employment, population and tourist growth.
A bulk of this investment will go into expanding the hotel and leisure industry, while around $10 billion will be spent to improve transportation infrastructure.
The biggest beneficiary should be the real estate sector, which has to cater to the increased demand for new hotel and infrastructure projects.
Deutsche Bank’s report continues to see positive momentum in the Dubai property market, triggered by attractive yields and property prices close to historical average.
With Dubai hosting World Expo 2020, the sector should continue to attract strong investor interest.
Dubai property prices are currently up around 50 percent since the 3rd quarter 2011 but still 45 percent below the peak of 2008 and close to the average price of the last 8 years. Compared with other major cities in the world, Dubai offers attractive property prices and rental yields and a low tax environment. Moreover, Dubai’s “safe-haven” status, strategic location and growing tourism sector continue to attract investor interest.
The Al-Maktoum International Airport, the newly developed airport near the Expo site, started passenger operations on 27 October.
When fully completed the airport will be able to handle 12 million tons of cargo and 160 million passengers annually, making it the largest international airport by some margin.
Besides this, Dubai has also initiated an expansion plan for its existing Dubai International Airport to increase its existing capacity from 60 million to 90 million passengers per year by 2018.
Winning the Expo can further facilitate the “Dubai Vision” target of handling 20 million tourist arrivals by 2020.
Increased tourist arrivals and an upbeat business climate are positives for the hotel and leisure industry as well as the retail sector.
About 25 million visitors are expected for the World Expo 2020 event, 71percent of which will be non-domestic visitors.
Dubai was voted as the host city to conduct the World Expo 2020 event in the Bureau of International Expositions’ 154th General Assembly.
This will be the first World Expo to be hosted in the MENASA region.
Dubai was able to outbid the competition from Sao Paulo (Brazil), Ekaterinburg (Russia) and Izmir (Turkey) with its theme of “Connecting minds, Creating the Future”.
The Expo Live support package of 150 million euros for developing countries to aid their participation and the 100 million euro Partnership Fund to spur innovations, ideas and entrepreneurship on sustainable development projects helped sway the votes in Dubai’s favor.
World Expo 2020 to boost UAE real estate and tourism sector
World Expo 2020 to boost UAE real estate and tourism sector
Saudi Arabia’s foreign reserves rise to a 6-year high of $475bn
RIYADH: Saudi Arabia’s foreign reserves climbed 3 percent month on month in January to SR1.78 trillion, up SR58.7 billion ($15.6 billion) from December and marking a six-year high.
On an annual basis, the Saudi Central Bank’s net foreign assets rose by 10 percent, equivalent to SR155.8 billion, according to data from the Saudi Central Bank, Argaam reported.
The reserve assets, a crucial indicator of economic stability and external financial strength, comprise several key components.
According to the central bank, also known as SAMA, the Kingdom’s reserves include foreign securities, foreign currency, and bank deposits, as well as its reserve position at the International Monetary Fund, Special Drawing Rights, and monetary gold.
The rise in reserves underscores the strength and liquidity of the Kingdom’s financial position and aligns with Saudi Arabia’s goal of strengthening its financial safety net as it advances economic diversification under Vision 2030.
The value of foreign currency reserves, which represent approximately 95 percent of the total holdings, increased by about 10 percent during January 2026 compared to the same month in 2025, reaching SR1.68 trillion.
The value of the reserve at the IMF increased by 9 percent to reach SR13.1 billion.
Meanwhile, SDRs rose by 5 percent during the period to reach SR80.5 billion.
The Kingdom’s gold reserves remained stable at SR1.62 billion, the same level it has maintained since January 2008.
Saudi Arabia’s foreign reserve assets saw a monthly rise of 5 percent in November, climbing to SR1.74 trillion, according to the Kingdom’s central bank.
Overall, the continued advancement in reserve assets highlights the strength of Saudi Arabia’s fiscal and monetary buffers. These resources support the national currency, help maintain financial system stability, and enhance the country’s ability to navigate global economic volatility.
The sustained accumulation of foreign reserves is a critical pillar of the Kingdom’s economic stability. It directly reinforces investor confidence in the riyal’s peg to the US dollar, a foundational monetary policy, by providing SAMA with ample resources to defend the currency if needed.
Furthermore, this financial buffer enhances the nation’s sovereign credit profile, lowers national borrowing costs, and provides essential fiscal space to navigate global economic volatility while continuing to fund its ambitious Vision 2030 transformation agenda.
