Dubai Expo 2020 bid sparks fears of ‘economic bubble,’ survey finds

Investors in the UAE fear that a successful Dubai Expo 2020 bid could lead to a new economic bubble. (File photo: Reuters)

A successful Dubai Expo 2020 bid could lead to another economic bubble, according to a survey of investment professionals by the UAE branch of Chartered Financial Analysts (CFA) Institute.

The survey, published by the CFA Society Emirates, showed that 55 percent of the approximately 215 UAE-based respondents are concerned that a successful Expo 2020 bid will create a new economic bubble. Only one quarter of the respondents believe the UAE’s economy is now immune to such a bubble after 2008’s financial crisis.

“The stock market, real estate and foreign direct investment sectors are all expected to be beneficiaries if Dubai wins but many are concerned that a successful bid will create another economic bubble,” Amer Khansaheb, President of CFA Society Emirates, said in a released statement.

The announcement on whether Turkey, the UAE or Brazil has won the bid is expected to be made on Nov. 27 by the Bureau International des Expositions (BIE).

Results of the survey showed that 95 percent of respondents support Dubai’s bid, while 97 believe that the emirate is likely to be successful.

CFA chartholders in the UAE nearly “unanimously” believe that Dubai will win Expo 2020 bid. There is a trend, according to the data, that respondents believe increasing regulations could prevent an economic bubble, said the Chartered Financial Analysts’ Amer Khansaheb, President of CFA Society Emirates.

According to the survey, 87 percent of respondents support imposing regulations to increase the economy’s immunity against another potential economic bubble.

“More government regulation and easier procedures for starting new businesses in the UAE would potentially help protect the economy from excessive speculation,” added Khansaheb.

Dubai is competing against Sao Paulo in Brazil, Yekaterinburg in Russia and Izmir, Turkey to host the international fair which is held every five years.

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Last Update: Wednesday, 20 May 2020 KSA 13:51 - GMT 10:51
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