The economic recovery taking place in Dubai has become more entrenched, according to Bank of America Merrill Lynch, with the company claiming the emirate's bid to host the 2020 Expo will provide a potential boost to GDP.
The bank noted that the Expo could ensure Dubai remains on track to see growth accelerate to five per cent in 2014-15.
"Dubai's economic recovery has become more entrenched, and the 2020 Expo bid provides upside potential," said Jean-Michel Saliba, Middle East and North Africa economist at Bank of America Merrill Lynch.
Dubai has been slowly and steadily recovering from a significant economic slump in 2009, with 2013 growth hitting 4.6 per cent. Much of the recovery in the emirate has come on the back of high oil prices, an accommodative monetary policy, a rebounding real estate sector and support from external industries, such as tourism and manufacturing.
The bank explained: "With a fading drag from construction and real estate activity, growth is likely to accelerate towards five per cent in 2014-15, in our view."
It is thought the World Expo 2020 event, which will run from October 20th 2020 to April 10th 2021, will provide a further economic boost for the economy, as it is expected to attract millions of visitors during the six-month period.
Challenges are expected to be thrown up by such a rise in visitor numbers, but reports suggest the opportunities for businesses and visitors will outnumber their difficulties.
The government is expected to invest around AED25 billion (£4 billion) in projects to strengthen the infrastructure of the emirate ahead of hosting the World Expo.
Construction projects and improvements to infrastructure in Dubai is expected to create around 225,000 new jobs in the emirate.
Small and medium-sized enterprises (SMEs) operating in Dubai are expecting to gain a great deal from the event. Figures published by the Dubai Chamber indicated around 245,000 jobs will be created in the tourism sector alone.
All statistics point to the fact smaller firms operating in the travel industry will experience the growth of the sector, and the wider economy, in the coming years.