How Will Gulf Countries Benefit From UAE’s Expo 2020?
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How Will Gulf Countries Benefit from UAE’s Expo 2020?
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By Naam Chakravorty, Gulf Region Analyst, and Syeda Saniya Fatima, Analyst, Botho Emerging Markets Group
December 15, 2021
Expo 2020, the first World Expo in the Middle East, Africa, and South Asia provides a great opportunity for Gulf countries to rebuild their economies as they recover from the COVID-19 pandemic. For example, the event could add up to AED 122.6 billion (USD 33 Billion) to the UAE GDP alone between 2013 and 2031 and as many as 905,000 job possibilities, resulting in a 1.5 percent rise in the UAE's estimated annual GDP. Furthermore, considering the region's economic interconnectedness, Expo 2020 will undoubtedly benefit Gulf neighbors. Here’s how the Gulf countries are leveraging Expo 2020 to advance their national strategic visions:
Saudi Arabia previews its Expo 2030 bid and shares a glimpse of Vision 2030
Saudi Arabia, the Gulf's oil giant and the region's largest country is known for its rolling sand deserts, gleaming oasis, and skyscrapers, as well as holding the world's second-largest oil reserves. While the oil sector accounts for 24.7 percent of GDP, the Saudi economy is at a crossroads thanks to the promotion of Vision 2030, which opened the door to top-down socio-economic reforms as well as a more assertive foreign policy. Now more than ever, Saudi is striving to entice global businesses to set up headquarters in the country. And the Saudi’s focus at Expo is to further this mission. For instance, their finance ministry has launched Fatoorah, an e-invoicing project, at Expo 2020 Dubai, as well as an initiative to implement global financial practices across the government sector. These initiatives come at a time when Saudi Arabia is displaying its digital capabilities at Expo 2020, as well as its reputation as one of the world's most innovative countries when it comes to providing government services and interfacing with both citizens and the private sector.
With the second-largest pavilion at Expo 2020, Saudi Arabia showcases its economic opportunities and business relevance; draws visitors to sight-seeing opportunities such as Al Ula, the country’s upcoming cultural capital hosting the Saudi’s first UNESCO site; and previews upcoming smart city megaprojects, like Neom. These efforts help fuel the country’s tourism industry and highlight its ambition to become a business and tourism hub. The country’s successful participation also acts as a prelude to its bid to host the 2030 World Expo, which coincides with the culmination of its Vision 2030, and enables it to illustrate the progress made in its social and economic transformation.
Oman amplifies its economic diversification efforts
The country in the Gulf’s southeast is well-known for its natural beauty and architectural legacy. It is also the oldest independent state in the Arab world, ruled by the Omani Al Said Family since 1744. Oman's economy has been primarily reliant on oil exports and tourism, with the government prioritizing economic diversification in the last few decades. However, the portrayal of the Sultanate's history is not on its side. According to the 2019 Global Innovation Index report, Oman scores "below expectations" in innovation when compared to high-income countries and ranks 80th out of 129 countries in the Innovation Index, which considers factors such as political and business environment, education, and infrastructure, amongst others. The country is looking to change the narrative and Expo 2020 is at the center of its efforts.
Oman's Expo pavilion intends to promote the country as a distinct tourism and business destination and stimulate investment in a variety of sectors, thereby enhancing Oman's position as a strategic base for multinationals. The pavilion's visitors will travel through five zones to learn about Omani advancements in transportation, education, production, sustainability, and exploration. Through Expo 2020, the country is focused on amplifying its strengths, including its top position in the Global Competitiveness Report's "Free of Terrorism" ranking and its attractiveness to foreign investments - the country permits 100 percent foreign ownership and customs exemption for factories and raw materials for the first five years of production. Visitors to the Sultanate of Oman pavilion will be able to observe the transformative journeys of the Omani public and private sectors, in line with the Oman 2040 vision to become a knowledge-based economy.
Kuwait highlights its geographic and cultural history while demonstrating its ongoing transformation, organized around the pillars of a sustainable economy, society, and government reforms
Kuwait is known for its oil wealth, which accounts for nearly half of its GDP, almost 95 percent of exports, and 90 percent of the government's revenue. The country lags behind its Gulf Cooperation Council (GCC) neighbors in terms of economic competitiveness and regulatory environment. However, Kuwait is dedicated to revitalizing its economy and has created Kuwait Vision 2035, commonly known as 'New Kuwait' to help guide its efforts. The ultimate purpose of Vision 2035 is to eliminate unnecessary red tape that stifles innovation, cut government spending, and boost private sector investment in Kuwait.
The pavilion themed 'New Kuwait, New Opportunities for Sustainability,' provides a cross-section view of the country's sustainability focus and its history, tradition, current growth, and prosperity. From Kuwait's pre-oil past to the oil-rich modern state, the pavilion takes visitors on a journey through the country's history. In line with the New Kuwait Vision 2035, one of the country's main goals in participating in the Expo is to showcase its development activities focused on the private sector leading economic activities, supported by effective public institutions and citizen-centered policies, aimed at fostering competitiveness, increasing productivity, harnessing the human talents of Kuwait's youth, and enabling the business environment. Kuwait wants to build on its international image for promoting peace and security while also positioning itself as an attractive investment destination.
Qatar highlights its commitment to the UN’s Sustainable Development Goals while promoting its upcoming mega football event
This small peninsular Gulf country sharing a border with Saudi Arabia has the highest GDP per capita in the world. Qatar also has the world's third-largest proven natural gas reserves and is the world's second-largest natural gas exporter. Expectedly, petroleum and natural gas are the backbones of Qatar's economy, accounting for more than 70% of total government revenue, 60% of GDP, and nearly 85% of export earnings. However, to diversify its economy and move towards sustainability, Qatar’s National Vision 2030 has made a conscious commitment to address the challenge of social development and environmental management amongst other concerns. The National Vision addresses five major challenges facing Qatar: modernization and preservation of traditions, managing the needs of the current generation and of future generations, managing and fuelling economic growth, social development, and environmental management. These themes form the cornerstones of Qatar’s pavilion exhibit at Expo 2020.
Under the slogan “The Future is Now,” the Qatari pavilion’s gallery invites visitors to explore the past, the present, and the future through visual arts, sound effects, and music. Using state-of-the-art technology, including holographic projections, 3D mapping, and transparent LED screens, the country brings to life its SDG initiatives and previews the FIFA World Cup. Qatar aims to tap into the Expo to draw visitors from across the world to the world’s first carbon-neutral World Cup, anticipating a boost of $20 billion to its economy. Its participation is expected to help showcase its sustainability efforts, tap into newer economic avenues like tourism, and strengthen ties with the participating Gulf countries following the blockade withdrawal while drawing visitors for its sporting mega-event next year.
Bahrain is set to amplify its creative and cultural sector this Expo 2020
Bahrain’s pavilion represents the theme of ‘Density Weaves Opportunities’ and highlights the country’s artisanal and cultural history. The pavilion’s interwoven rod design signifies weaving needles, representing the island nation’s cultural identity of evolving modernism and traditional culture demonstrated through its artisanal crafts and traditional Bahraini food. To reiterate Bahrain’s cultural heritage and talent, the pavilion is showcasing local creative experts display their traditionalism-inspired and innovation-driven talent. For instance, Fashion designer Hala Kaiksow along with other designers will be taking part in design-focused experimental labs to reimagine Bahraini weaves, while Chefs Lulwa Sowaileh and Bassam Al Alawi’s fusion takes at the traditional Bahraini cuisine will be on offer at the pavilion’s cafe. Furthermore, the site offers a unique chance for visitors to experience the country’s tourism opportunities through its ancient cities and UNESCO World Heritage site displays.
These efforts align with Bahrain’s new economic growth plan and fiscal balance program that aims to support annual growth of 5% in the non-oil sector by 2022. The country, facing a public debt amounting to 133% of GDP, is seemingly utilizing Expo 2020 to boost investments into its economy and promote tourism. The pavilion also aims to show Bahrain’s efforts in promoting trade and entrepreneurship through displays of main export products, including cultural, artisanal work and handicrafts, woven composite materials used in the automotive and construction industry, old and new technology displaying artisans interlacing palm leaves, and installations on the manufacture of fiberglass. These demonstrations along with a showcase of the unique competitive advantages and business-friendly environment will contribute to Bahrain’s new economic growth plan targeting $30 billion of investments to shore up its economy post-pandemic and balance its budget by 2024. The plan also aims to create more than 20,000 jobs annually for citizens by 2024 and attract $2.5 billion in foreign direct investment by 2023.
Expo 2020 serves as a catalyst for the Gulf countries to realize their respective strategic visions and goals. While the Gulf countries are at varying degrees of economic health, they all share the common goal of economic diversification to move from a dependence on oil towards more sustainable avenues. The countries have also collaborated on a dedicated GCC pavilion at Expo 2020 to showcase the region’s shared heritage, culture, and religion. These individual and collaborative efforts are indicative of the promise that Expo 2020 holds for the region as the countries highlight their most lucrative investment opportunities and tap into an expected 25 million visitors to further tourism and economic growth.
Naam Chakravorty is a Gulf Region Analyst at Botho Emerging Markets Group
Syeda Saniya Fatima is an Analyst at Botho Emerging Markets Group