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FIFA Qatar 2022 will have a beneficial impact on Qatar’s economic performance in the medium and long terms, according to my observations of the economic indicators during the first week of the World Cup in Qatar.
The International Monetary Fund recently predicted that Qatar’s economic growth rate would reach 4.9%, supported and driven by many fundamental factors, the most important of which are the country’s hosting of the World Cup and the continuous rise in gas prices. Despite the pessimistic predictions of the global economy, the Qatari economy is completely different, according to the testimony of the IMF. Between November 21 and December 18, 2022, the world will host “FIFA Qatar 2022”.
Tournament proceeds
The FIFA World Cup Qatar 2022 is expected to generate direct financial revenues of around 8 billion riyals ($2.2 billion), while the long-term economic revenues, spanning the years 2022 to 2035, are projected to be around 9.9 billion riyals ($2.7 billion), amid expectations of an increase in tourism revenues, which are anticipated to soar during the World Cup and beyond.
Since it was announced that Qatar will host the World Cup, the government has been working arduously to finish infrastructure and other service projects in collaboration with the private sector.
Huge infrastructure
The World Cup provides a good opportunity to carry out Qatar Vision 2030’s objectives. Basic infrastructure including roads, bridges, ports, airports, subways, housing, tourism, and free zones have received more than $200 billion in funding. After the forthcoming competition is over, this infrastructure will produce benefits. The infrastructure that the State of Qatar built as part of its World Cup preparations will also play a significant role in fulfilling the objectives of sustainable development since it will have a direct and indirect influence on the returns on the movement of goods, services, and transportation.
For the month-long event, Qatar has constructed the minimal infrastructure required to handle 1.3 million guests or almost half of the country’s total population.
Qatar has constructed cutting-edge stadiums, a contemporary metro system, an enlarged airport, and new neighborhoods inside its city, Doha.
As a result, the World Cup will be a major draw for luring foreign investment, something the government of Qatar is aiming to do, and it will reflect well on the nation’s future as an investment and tourism destination up to the difficulties of competition.
In light of the ongoing implementation of projects related to the Qatar Vision 2030 and the fact that “spending on World Cup projects increases GDP by 1.5%,” he ruled out the possibility that the Qatari economy would enter a stage of recession following the organization of the FIFA World Cup 2022 competition.
The effects of Qatar hosting the 2022 World Cup: “When Qatar was selected to host the tournament in 2010, FIFA Qatar 2022 “began to take shape by bringing the country’s diverse industries and decision-makers together to focus on a single objective.” The influence of the infrastructure that has been constructed will not be confined to the World Cup era but will continue after it. The state has undertaken initiatives in a variety of disciplines during the last year, with expenditure rates reaching $500 million per week.
Beneficiary sectors
Numerous industries profit, including “the aviation and hospitality sector will be among the biggest beneficiaries during the country’s most prestigious sporting event,” and “this benefit will continue after the event, as the good impression of Qatar will increase, which will mean an increase in the flow of tourists.”
Given that there are now between 1.2 and 1.5 million fans in Qatar, tourism will gain from the event in addition to brands.
Additionally, the World Cup will provide the world a chance to observe Qatar’s ability and competence in hosting the biggest athletic events.
Along with the marketing component, social media posts from fans, competing teams, and journalists in Qatar will help millions of people learn more about Qatar through print media, radio, and television networks.
Qatar’s expectations for the World Cup
The third-largest natural gas reserves in the world and one of the top oil exporters, Qatar, relies heavily on its oil and gas exports to sustain its economy.
Qatar seeks to expand the scale of its economy, which is independent of energy, as it strives to become a commercial and tourism hub in the area. Although natural resources have contributed to the country’s wealth, market forces that dominate hydrocarbon exports cause revenue unpredictability.
To achieve this goal, hosting the World Cup is required. The proportion of hydrocarbons in the GDP fell from 55% to 39% between 2013 and 2018, reflecting the significant expenditures related to World Cup preparations. The World Cup supported the growth of important industries unrelated to energy, and Qatar will prioritize its continued expansion after the World Cup.
Despite the potential benefits of hosting the World Cup, these major international sporting event, unfortunately do not pay off well for the host nation’s investments. According to predictions, Qatar’s economy will grow by 3.4% in 2022 and 2023 as a result of the World Cup’s momentum, but by 2024 it would have shrunk to 1.0%.
Despite these reservations, Qatar carefully developed the infrastructure to help the economy after the World Cup, and Qatar’s ongoing investment in improving its infrastructure is anticipated to boost its transportation, commerce, and economic activities.
Disclaimer. The views and opinions expressed in this analysis are those of the authors and do not necessarily reflect the official policy or position of MEPEI. Any content provided by our authors is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.
