By Andy Sambidge
Majority of UAE investment professionals raise worries about impact of World Expo vote victory
A majority of investment professionals working in the UAE are concerned that a new economic bubble could be created in Dubai wins the right to host the 2020 World Expo, a new survey has revealed.
Fifty-five percent of respondents to the survey raised worries about the impact on Dubai's economy.
Only a quarter of those polled said they believed the UAE had done enough to make its economy immune from the kind of bubble that caused so much harm in 2008/09.
They added that they overwhelmingly support increasing regulation to increase the economy's immunity to another bubble, with 87 percent of respondents favouring real estate regulation and 75 percent of respondents favouring bank regulation.
The survey also showed that more than half of respondents (56 percent) predict easier procedures for starting businesses would help protect the UAE from another bubble.
The survey of more than 200 UAE investment professionals conducted by the CFA Institute, a global organisation of investment professionals.
CFA Society Emirates, the local UAE member society of CFA Institute, on Wednesday published its Dubai Expo 2020 Survey ahead of the final decision by Bureau International des Expositions (BIE) on November 27.
Despite the concerns voiced, the survey revealed that 95 percent of respondents support Dubai's bid for Expo 2020 with 97 percent believing the UAE is likely or very likely to win the Expo 2020 bid.
CFA charterholders said they think a successful bid will have a positive impact on the stock market (87 percent of respondents), real estate (90 percent) and foreign direct investments (85 percent).
Only four percent said they believe the costs associated with hosting Expo 2020 will create a debt burden on the UAE economy, the survey also showed.
Amer Khansaheb, president of CFA Society Emirates, said: "Investment professionals in the UAE are very supportive of Dubai's bid for Expo 2020 and nearly unanimous is their belief that Dubai will win the bid.
"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.
"CFA charterholders believe more government regulation and easier procedures for starting new businesses in the UAE would potentially help protect the economy from excessive speculation."
Boom or bust is not a concern for Dubai Expo. Instead, the primary concern is about the sustainability of the economy with or without Expo 2020. One event cannot make or break any economic power, but the overall economic growth of mankind can definitely make a new powerhouse.
I wish people around the world were here to witness the bubble growing once again in UAE. Real state prices have risen illogically once again, food and essential items also have doubled. Why? What is the reason behind this inflation? Everyone here who have lost a lot during the economy crisis back in 2008/2009 are still suffering, some are even in a worst situation now!
Dubai will win Expo 2020