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MICE Industry to Drive UAE Economy
The UAE dominates the MICE market in the Middle East due to world-class infrastructure and facilities for hosting global events
The UAE MICE market is expected to grow at 8.5 per cent during the 2023-30 to $9.12 billion by 2030 due to increasing business events, exhibitions and conferences in the country.
THE MEETINGS, Incentives, Conferences, and Exhibitions (MICE) industry in the UAE will continue its exponential growth and sustain significant contribution to the national economy in coming years, according to experts.
Top executives and latest research reports indicate that the UAE MICE market is expected to grow at 8.5 per cent during the 2023-30 to $9.12 billion by 2030 due to increasing business events, exhibitions and conferences in the country.
They further said the UAE dominates the MICE market in the Middle East due to world-class infrastructure and facilities for hosting global events. Dubai World Trade Centre, Abu Dhabi National Exhibition Centre (ADNEC) and Expo Centre Sharjah are some of the leading players in the MICE industry and contributing significantly to national economy.
Mahir Julfar, Executive Vice-President at Dubai World Trade Centre (DWTC), said the outlook for the MICE industry in the UAE is exceptionally optimistic for this year. He said DWTC plays a pivotal role in shaping the global MICE landscape and is a key catalyst to Dubai’s success.
Mahir Julfar, Executive Vice-President at Dubai World Trade Centre, said the outlook for the MICE industry in the UAE is exceptionally optimistic for this year.
“The sector is on a trajectory of growth and success, characterised by innovation, sustainability, and a dedication to delivering outstanding experiences for participants and exhibitors,” Julfar told BTR.
The ongoing economic impact of events hosted at DWTC was underscored by a significant incremental economic output of Dh13 billion in 2022, with 57 per cent retained within Dubai's GDP. The impressive multiplier effect, where every dirham invested generates over 7.4 times its value across the city's wider economy, emphasises the crucial role of the MICE sector in driving economic growth.
ADNEC group announced recently that the direct and indirect economic contributions of the group's seven business sectors to the economy of the emirate of Abu Dhabi and the UAE in general will double to reach Dh7.37 billion in 2023, an increase of 107 per cent compared to 2022, which amounted to Dh3.56 billion, to be the largest in the group's history since its establishment in 2005.
ADNEC group announced recently that the direct and indirect economic contributions of the group's seven business sectors to the economy of the emirate of Abu Dhabi and the UAE in general will double to reach Dh7.37 billion in 2023
"These record achievements came in line with the group's commitment to develop and innovate solutions and initiatives aimed at accelerating performance growth rates and seizing investment opportunities in its seven business sectors, and working closely to achieve added value for all its shareholders and partners in the government and private sectors, in order to emphasise the position of the emirate of Abu Dhabi as the capital of the business and leisure tourism sectors in the region,” Humaid Matar Al Dhaheri, Managing Director and CEO of ADNEC Group, said.
MASSIVE GROWTH
Notably, in the first half of 2023, the UAE led the Middle East's MICE market, with Dubai's global reputation in the industry surging. The city experienced an impressive 44 per cent year-on-year growth in business event bid wins, aligning seamlessly with the objectives outlined in the Dubai Economic Agenda D33, indicating significant economic growth.
“Building on the success of large-scale events at DWTC in 2023, including global conferences such as COP28 at Dubai Exhibitions Centre (DEC), and prestigious legacy events from Gitex Global and Gulfood to Arab Health and the Arabian Travel Market, our focus for 2024 is on growth and expansion. Our two world-leading venues, DWTC and DEC, are gearing up to host over 70 high-profile and pioneering events in first half of 2024,” he said.
“As we move into 2024, several key trends are expected to shape the MICE landscape in the UAE, with Dubai at the forefront. Digital transformation will continue to be a significant influence, utilising data analytics and artificial intelligence to offer highly personalised experiences.
Dubai experienced an impressive 44 per cent year-on-year growth in business event bid wins.
“Understanding participant behaviour and exhibitor preferences enables precise tailoring of offerings, setting a new standard for satisfaction and engagement in MICE events. This data-driven approach not only enhances the participant experience but also contributes to the overall efficiency and effectiveness of event planning and execution,” he said.
Moreover, he said sustainability initiatives will evolve in the realm of event planning and execution, with green practices, ranging from efficient waste management to energy conservation, becoming integral components of MICE business and tourism. This reflects a commitment to environmental responsibility, highlighting the industry's awareness of its ecological impact and aligning business objectives with global efforts toward a more sustainable future.
PROMISING OUTLOOK
Saif Mohammed Al Midfa, Chief Executive Officer of Expo Centre Sharjah (ECS), expressed similar views and said the outlook for the conferences and exhibitions industry in Sharjah and the UAE is quite promising.
“The sector is witnessing exponential growth, reflected in the UAE’s hosting of major international exhibitions and conferences. Along with the recent COP28 Climate Change Conference, we have hosted numerous international events that go hand-in-hand with the continuous growth trajectory of this dynamic and prominent sector, while positively impacting various other sectors,” Al Midfa told BTR.
Saif Mohammed Al Midfa, Chief Executive Officer of Expo Centre Sharjah, said the outlook for the conferences and exhibitions industry in Sharjah and the UAE is quite promising.
“In Sharjah, our 2024 calendar at Expo Centre Sharjah is packed with events as we prepare to put on 49 exhibitions and festivals this year at our main headquarters in Sharjah and our affiliate centres in Khorfakkan and Al Dhaid,” he said.
“Sharjah’s exhibition boom is cemented by the economic, industrial, cultural, and tourism momentum currently sweeping the Emirate. Our focus is to incorporate all of these aspects into the current year’s events calendar by hosting a line-up of major local, regional, and international exhibitions targeting key sectors,” he said.
FACTORS DRIVING GROWTH
Julfar said the UAE's robust economic growth, driven by its pivotal role as a leading tourism and business hub, leads to an increased focus on MICE activities, fuelling market expansion.
“Evolving lifestyles and increasing disposable incomes in the region support a culture of both leisure travel and corporate gatherings, further enabling growth of the MICE market. Emerging technologies that facilitate virtual and hybrid events also empower organisers to engage a global audience and optimise participation,” he said.
DWTC serves as the anchor for MICE events in the emirate, through its two world-class locations — DWTC and DEC.
The Government of Dubai remains steadfast in its commitment to ensuring the city maintains its appeal as a highly attractive destination for the global MICE industry. This commitment is evident through continuous investments in infrastructure, innovation and human capital.Moreover, the ongoing introduction of new economic initiatives, such as the Dubai Economic Agenda D33, and regulatory frameworks to enhance foreign direct investment, generate demand across various sectors, including our industry.
“This commitment is underlined by a track record of hosting prestigious, globally significant events. Simultaneously, Dubai is dedicated to fulfilling the broader UAE commitment to sustainability and accessibility, adding value to the MICE experience.”
DWTC serves as the anchor for MICE events in the emirate, through its two world-class locations — DWTC and DEC. Collaborating with key public and private sector stakeholders, we consistently strive to innovate and evolve through the pursuit of new opportunities, ventures, and projects that enable us to better serve the international business and MICE community, ultimately increasing our contribution to the Dubai economy.
“Through the expansion of our own events portfolio, we are able to showcase our legacy capabilities and support key growth sectors in pivotal markets while promoting DWTC and Dubai as a hub for opportunities. This recognition has been acknowledged by global industry bodies, including UFI and the International Congress and Convention Association (ICCA), with Dubai being ranked as one of the world’s premier MICE destinations,” he said.
SHARJAH AN EMERGING PLAYER
Al Midfa said the UAE and Sharjah have emerged as a significant regional hub for conferences and exhibitions because of our focus on innovation and quality in event-planning.
“Credit is also due to the government support for the industry, manifested in its provision of incentives, facilities, laws, and policies that stimulate, develop, and diversify the sector, raising levels of quality and competitiveness,” he said.
The UAE and Sharjah have emerged as a significant regional hub for conferences and exhibitions because of our focus on innovation and quality in event-planning.
He said several other factors also play a role in propelling the growth of the exhibitions sector. Elaborating, he said the UAE’s strategic geographic location makes it an easy-access destination from all corners of the globe.
“Our nation also boasts numerous seaports and free zones, a favourable business climate, and a capacity for hosting diverse events that meet market requirements and advance economic diversification in the fields of real estate, industry, retail, and culture. All these sectors in Sharjah are experiencing persistent growth thanks to the Emirate’s advanced infrastructure, modern facilities, state-of-the-art technologies, and quality services, which we offer to exhibitors at Expo Centre Sharjah,” he said.
NEW EXHIBITIONS IN 2024
Making its mark in the first half of the year, FESPA Middle East, which took place from January 29 — February 1, 2024, is the latest addition to DWTC’s event calendar. Catering to the specialised print, signage, and visual communications community in the Middle East and Africa region, the event attracted participation from over 100 renowned global brands, promising a dynamic showcase of cutting-edge technologies, trends, and solutions within specialty printing and visual communication.
Japan Kyoto Trade Exhibition, which was held from January 22-24, serves as a premier platform for corporations and individuals to delve into the diverse industries of Japan. Exploring the forefront of technology to the intricacies of automotive, anime, food and beverage, and more, the exhibition provides a unique opportunity for attendees to connect, collaborate, and explore potential business ventures within the vibrant landscape of Japan's industries.
The UAE’s strategic geographic location makes it an easy-access destination from all corners of the globe.
Following this, the Project Controls Expo, which was organised on February 13-14, brings together professionals and experts from various industries such as construction, oil and gas, aerospace, and defence.
DOMOTEX Dubai, returning after 13 years, will be held from April23-25 at the DWTC. As the leading event for the carpet and flooring industry in the Middle East, this show promises to celebrate the latest innovations and trends within the sector, offering a comprehensive showcase of products and services to industry professionals and enthusiasts alike.
Finally, The Baby Expo Dubai, scheduled for May 24-25, marks Dubai's first early parenting event. Designed to provide valuable baby education and showcase the latest products and services related to parenting, this expo caters to the needs of new and expecting parents, offering a holistic approach to early parenting. “The second half of 2024 will also be an exciting period with more new events that will be introduced soon,” Julfar said.
“Our last year’s economic impact report data revealed that from large-scale events held at DWTC in 2022, Healthcare, Medical, and Scientific; Information Technology (IT); and Food, Hotel and Catering emerged as the leading sectors. These three segments collectively contributed significantly to Dubai's economy and accounted for 57 per cent of the gross value added (GVA), equivalent to $1.16 billion,” he said.
He said the impact extended beyond economic value, as the combined attendance from these sectors represented a substantial portion of the total large-scale event visitors, comprising 46 per cent and totalling 535,000 participants. “This highlights the important role played by these sectors in shaping and contributing to the success of DWTC's events, making a substantial contribution to both the economic and experiential dimensions of Dubai's MICE industry,” he said.
ECONOMIC DIVERSIFICATION
Al Midfa also highlighted ECS’ diverse programmes cover numerous different sectors, thereby enhancing economic diversification, serving the business community, and boosting commercial, tourism, and cultural activity across Sharjah.“This year, the centre will host a number of exhibitions and events that add value to the Sharjah and UAE economies, while reflecting the leadership, creativity, and versatility of the conferences and exhibitions sector,” he said.
“Our 2024 events calendar includes the Watch & Jewellery Middle East Show, the Sharjah Real Estate Exhibition — ACRES, the Xposure International Photography Festival, Ramadan Nights, Sharjah Children's Reading Festival, Sharjah International Book Fair, the National Career Exhibition, and a slew of other exhibitions that cater to various vital sectors and generate numerous commercial and investment opportunities for companies and the business community,” he said.
POPULAR MICE EVENTS
To a question about popular segments within the MICE industry, Al Midfa said every sector has its own importance when it comes to integration and diversity.
“As we organise large-scale, specialised events and exhibitions characterised by innovation, we play a role in meeting market requirements and the needs of the business community. On a broader scale, we also participate in boosting the economic performance of various sectors and underscoring the contribution of trade and industry to the national GDP,” he said.
He said the exhibitions sector contributes to the advancement of the tourism and hospitality industry, which steps up to meet the needs of visitors, exhibitors, and organisers by providing accommodation, transportation, entertainment, and shopping opportunities, as well as cultural, heritage, and outdoor experiences. “All of the above plays a part in strengthening the economy, supporting development, creating new jobs, and attracting further investments,” he said.
Julfar also shed light on most popular segments within the MICE Industry and said the sector will continue to support Dubai’s economy in coming years. “Our last year’s economic impact report data revealed that from large-scale events held at DWTC in 2022, Healthcare, Medical, and Scientific; Information Technology; and Food, Hotel and Catering emerged as the leading sectors. These three segments collectively contributed significantly to Dubai's economy and accounted for 57 per cent of the gross value added, equivalent to $1.16 billion,” he said.
He said the impact extended beyond economic value, as the combined attendance from these sectors represented a substantial portion of the total large-scale event visitors, comprising 46 per cent and totalling 535,000 participants. “This highlights the important role played by these sectors in shaping and contributing to the success of DWTC's events, making a substantial contribution to both the economic and experiential dimensions of Dubai's MICE industry,” he said.
—muzaffarrizvi@khaleejtimes.com
SWAT ANALYSIS FOR UAE MICE INDUSTRY
• STRENGTH: Well-developed infrastructure for MICE, strong government support for the industry, strategic location as a hub for MEA region.
• WEAKNESSES: Dependence on global economic conditions and company budgets for events, vulnerable to public health emergencies.
• OPPORTUNITIES: Emerging markets in neighbouring regions, scope for attracting more regional and global events, growing business tourism.
• THREATS: Public health crises like COVID-19 pandemic can severely impact demand, economic downturns affecting corporate budgets.
Outlook for Global MICE Industry
• The global market for Exhibition Organising estimated at $19.7 billion in 2022, is projected to hit $60.7 billion by 2030, reflecting a compound aggregate growth rate of 15.1 per cent over the analysis period 2022-30.
• The Exhibition Organising market in the US is estimated at $7.3 billion in the year 2022. China, the world's second largest economy, is forecast to reach a projected market size of $8.3 billion by the year 2030 trailing a compound aggregate growth rate of 18.1 per cent during the period 2022 to 2030.
• Japan and Canada, which are expected to grow at 12.2 per cent and 13.9 per cent, are also among the other noteworthy geographic markets. Within Europe, Germany is forecast to grow at approximately 13.8 per cent.
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