Expo 2030 to boost sectors performance, foreign investments: Analysts

King Abdulaziz Center for World Culture (Ithra)

Saudi Arabia's victory in hosting Expo 2030 reflects the Kingdom’s global position economically and medially, Argaam reported, citing analysts.

Hosting Expo 2030 will positively impact the Saudi economy and enhance investment opportunities in the capital city of Riyadh.

Diverse sectors benefit directly from this hosting, including construction, real estate, transportation, hospitality, insurance, retail, and others.

Analysts said that hosting Expo 2030 enhances foreign investments and contributes heavily to the Saudi gross domestic product (GDP).

Mohammed Saeed Makni, assistant professor of finance and investment at Riyadh’s Imam Muhammad bin Saud Islamic University (IMSIU), said the Kingdom’s victory in hosting Expo 2030 reflects its position on the global level and the international confidence in Saudi Arabia’s ability to organize this mega event.

This event will witness global competition among countries capable of excelling in terms of services, infrastructure, logistics and financial solvency.

On the other hand, Saad Althagfan, member of Saudi Economic Association’s (SEA) board, added that the Kingdom’s hosting of Expo 2030 is of great importance in all aspects, whether in terms of media coverage or economic wise. This is because it will act as a key add-on to Riyadh and the Kingdom as whole.

Saad Althagfan, Financial Analyst

Makni pointed out that the Saudi file reviewed all the aspects that Saudi Arabia can present, setting it apart and achieving an exceptional victory in the first round of voting for the first time since the exhibition’s launch in 1851. This is in addition to the major events that the Kingdom is preparing to host, such as the 2034 World Cup.

This reflects the Kingdom’s strength, durability, as well as economic and political ability, he stressed.

According to Althagfan, the Expo exhibition is held once every five years, with major cities competing to win hosting it. Its convention is bound to attract more than 40 million visitors in person and more than a billion others virtually via the event’s online platform for an extended period of 180 days.

Beneficiary sectors:

All economic sectors of the Kingdom are poised to benefit from the Expo 2030 hosting, most notably building and construction, real estate, accommodation, transportation, food, banking and insurance, Althagfan said.

All of these will attract new foreign investments, create new jobs, and boost the Saudi GDP, garnering an unprecedented addition not witnessed at any previous exhibition, he further stated.

He explained that all sectors related to building, construction, and transportation will have an opportunity at Expo 2030. Also, companies operating in sectors complementing this event - whether local or foreign - will capitalize on the relevant government support and corporate facilitations.

Meanwhile, Makni pointed out that the transportation and aviation sectors in Riyadh will benefit from hosting the exhibition. This is in addition to the communications, retail (especially food and restaurants), and the hotel and hospitality sectors.

Mohammed Saeed Makni, Financial Analyst

Makni deems Expo 2030 as an opportunity for local and international companies to provide products and services, which will contribute to enhancing Saudi economic growth. He expects a robust lure of foreign investments in Riyadh, especially in the office real estate market, to prepare in advance for the exhibition, creating about 250,000 direct jobs.

The tourism sector is witnessing substantial growth in the Kingdom, targeting millions of visitors. Thus, Expo 2030 will contribute to this great momentum, besides hastening the completion of strategic projects undertaken in the capital, such as King Salman Park, the Qiddiya Project and the Diriyah Gate Project.