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By Leigh Thomas

PARIS, Nov 27 (Reuters) - Dubai won the right on Wednesday to host the 2020 World Expo, beating off competition from the Brazilian city of Sao Paulo, Yekaterinburg in Russia and Izmir in Turkey in a vote by members of the world fair body.

The Gulf commercial hub won the support of 116 out of 164 voting members of the Paris-based Bureau International des Expositions in a final-round run-off against Yekaterinburg. It becomes the first Middle Eastern city to host an event that the United Arab Emirates hopes will pull in billions of dollars of investment.

Dubai lobbied hard to host the 2020 fair as a catalyst to transform the emirate of 2.2 million people into a top global centre for tourism, trade and finance.

"We are all very delighted that our country and the citizens UAE are extremely happy, exremely honoured with this responsibility by the international community," UAE Foreign Minister Sheikh Abdullah bin Zayed told Reuters just after the decision was announced.

But the win also carries risks. Some property developers warn it could trigger another speculative bubble similar to the one that burst in 2008-2010, when the global financial crisis caused Dubai property prices to crash by more than 50 percent, shaking financial markets around the world.

In Dubai, crowds of hundreds of people had been waiting for the result in front of big screens outside the Burj Khalifa, the world's tallest building.

"Winning the Expo will create lot of jobs for all nationalities living here," said Jemma, a 30-year-old waiter from the Philippines who has lived in Dubai for seven years, just before the result was announced.

"I'm concerned about the rent of my house, and the high cost of living ... We will celebrate now and worry about impact later. That's the Dubai spirit," he said.

Hayat, an 18-year-old from neighbouring Saudi Arabia spending a week in Dubai, said: "We as Saudis are proud that a Gulf Cooperation Council city will host such an event. This is a historic day for all the Middle East."

World Expos, which participating countries use to showcase technological prowess, culture and architecture, are held every five years for six months. Milan will host the next one in 2015.

The fairs hold huge stakes for would-be hosts, which are prepared to spend billions on infrastructure, hotels, buildings and other preparations to attract millions of tourists.

China said it spent $4.2 billion when Shanghai hosted the last World Expo in 2010, double what it spent at the Beijing Olympics.

Some Chinese media reported the true cost of hosting closer to $58 billion, many times the $164 million profit it reportedly made mainly through ticket sales and corporate sponsorship deals.

While the Shanghai fair pulled in a record 73 million visitors, not all expos prove to be a major tourist draw.

The number of visitors to the 2000 fair in the German city of Hanover were less than half the 40 million expected, leaving a financial shortfall of over a billion euros, according to German media.

(Additional reporting by Mirna Sleiman in Dubai; Editing by Mark John and Paul Taylor)

((leigh.thomas@thomsonreuters.com)(+33 1 4949 5143)(Reuters Messaging: leigh.thomas.thomsonreuters.com@reuters.net))

Keywords: WORLDEXPO/