With Saudi Arabia securing the hosting rights for the “Expo 2030,” economic analysts anticipate substantial benefits for the Saudi economy, spanning various sectors. The organization of this international event is expected to yield numerous advantages, including a boost to the Gross Domestic Product (GDP) growth and the enhancement of economic diversification.
Enormous Returns
Some may not fully grasp the economic significance of this global event. Looking at the substantial returns achieved by cities that hosted the Expo in the past, such as Milan, Italy (Expo 2015), where the economic impact exceeded 10 billion euros (10.99 billion dollars), creating 100,000 direct and indirect job opportunities and attracting 21 million visitors worldwide. Similarly, “Expo 2020” in Dubai, held from October 2021 to March 2022, drew over 24 million visitors, contributing approximately 155 billion dirhams (42.21 billion dollars) to the UAE’s GDP between 2013 (when it won the bid to host Expo) and 2042, generating around one million full-time jobs, equivalent to over 35,600 jobs annually during the same period.
In light of these precedents, “Expo 2030” holds significant importance for Riyadh, aligning with the goals of “Vision 2030” to attract around 100 million visitors to Saudi Arabia by the same year.
Direct and Indirect Benefits
Despite the expected high cost of hosting “Expo 2030” in Riyadh, estimated at around 30 billion riyals (eight billion dollars) for preparing the proposed six million square meter venue, various direct and indirect benefits are anticipated across all economic sectors and the income of the average Saudi individual.
Hosting the expo is expected to contribute to an increase in the Saudi GDP, subsequently raising the per capita share of the national income. Additionally, the event will provide employment opportunities and bring about social, cultural, and economic benefits, extending for years and giving Saudi Arabia a robust push towards economic diversification.
Anticipated visits to the expo site are projected to exceed 40 million, along with a billion virtual visits through the metaverse, an unprecedented achievement for Expo events. The expected interest from government entities, international organizations, and visitors is likely to bring about numerous economic benefits, estimated at up to 222 billion riyals (59.2 billion dollars) as direct economic gains. The economic impact of the expo is estimated to contribute a net growth rate of 23 percent to the economy’s Gross Domestic Product, exceeding a trillion dollars in 2022.
These economic benefits have been estimated based on the exhibition’s size, preparation, and the expected number of visitors, drawing comparisons with previous international expos in Dubai and Milan. The global interest in the Expo is evident through the increasing number of countries vying to host this event, reflecting its growing popularity.
Building on Saudi Arabia’s experience in hosting seasons and entertainment events, it is expected that the cumulative number of expo visitors during its six-month duration will exceed 40 million, generating direct income of 12 billion riyals (3.2 billion dollars) based on an average entry ticket value of 300 riyals (80.1 dollars).
The issuance of at least 20 million tourist visas for Saudi Arabia during the expo period, with an average fee of 500 riyals (133.4 dollars), is expected to generate 10 billion riyals (2.67 billion dollars) in direct revenue for the national economy, excluding other fees such as health insurance, which could provide an additional 10 billion riyals (2.67 billion dollars). The expo’s organization is anticipated to create temporary and permanent job opportunities, estimated at around 350,000, with an assumed monthly rate of 5,000 riyals (1,334 dollars) per job, expected to contribute 10.5 billion riyals (2.8 billion dollars) to the Saudi economy.
Attracting Investments and Business
Saudi Arabia aims to use the hosting of “Expo 2030” to enhance its global standing in innovation, technology, and sustainability. The expo is expected to attract investments, boost foreign and local entrepreneurial opportunities, and positively impact growth rates and employment opportunities. It will also foster increased international trade and cooperation in various fields, aligning with the goals of “Vision 2030” to achieve non-oil transformation, sustainable development, industrial development, job creation, economic growth, and improved quality of life for citizens and residents.
Expanding Investment Horizons
The organization of “Expo 2030” is expected to have a positive impact on economic activity in Riyadh and Saudi Arabia as a whole. The expo has the potential to enhance investments, attract businesses and tourism, stimulate economic growth, create job opportunities, and provide new prospects for companies and entrepreneurs. Moreover, the expo can contribute to cultural and social openness, fostering collaboration and interaction between diverse peoples and cultures, bridging distances, and promoting cultural and educational exchange.
A Touristic and Urban Leap
Bahrain’s Seera Bank predicts that Saudi Arabia’s winning bid for hosting “Expo 2030” will accelerate giant tourism projects, along with propelling an urban leap in the coming years. The investment bank suggests that the expo, along with other global events, especially sports events, will help Riyadh develop a sustainable annual influx of tourists after the Hajj and Umrah seasons. The expected number of visitors to the expo may surpass the visitor numbers of Expo 2015 in Milan and Expo 2020 in Dubai, which were 22 million and 24 million visitors, respectively.
