Qatar eyes $20 billion economic boost from 2022 World Cup

FIFA World Cup Qatar 2022™

Qatar is anticipating big returns from hosting the World Cup in 2022.

$20 Billion Bost

FIFA World Cup Qatar 2022™ will give a $20 billion boost to the local economy and will create opportunities for companies in different industries.

“We anticipate the contribution to the economy essentially would be around about $20 billion,” said Hassan Al-Thawadi, secretary-general of the committee for delivery and legacy, citing a “high-level study.”

That represents 11 percent of the country’s gross domestic product in 2019, Arab News reports citing Bloomberg.

But a more detailed projection is yet to be declared, he added, as the event will take place in November and December next year.

Al-Thawadi said the construction and tourism industries are expected to benefit the most from the biggest football event.

Making a Sporting History

Qatar Financial Centre (QFC) organised an event entitled ‘Expand Your Sports Business to QFC’ on the sidelines of Expo 2020 Dubai to showcase the wealth of opportunities in Qatar’s sports market.  

The event aimed to showcase the state of development in Qatar’s rapidly growing sports market and discussed the road to opportunities for 2022 and beyond.

According to Abby Chan, Vice President, Business Development, QFC, "Hosting the first FIFA World Cup in the Middle East and the Arab world shows the world has confidence in Qatar’s infrastructure and sporting capabilities."

She said, “This year, Qatar is making sporting history as the first Middle Eastern country to host the FIFA World Cup Qatar 2022. It shows that the world has confidence in Qatar’s infrastructure and sporting capabilities. Qatar is expecting the FIFA World Cup 2022 to further enhance the country’s sports sector and create a $20bn boost to its economy. It will also create opportunities for companies operating under different industries.”

Qatar Sports Sector

During the recently concluded QFC event, Laila Al Jefairi, Vice-President, Business Development at QFC, delivered the opening remarks and discussed how the sports sector is developing in Qatar. 

“Today the rapidly evolving sport ecosystem spans the field of play from the food to media rights and sponsorship. The Middle East is seen to be one of the fastest growing regions in the sports market driven by emergence of e-sports rising sponsorship, economic diversification and increase in the Internet accessible devices and interactive technology usage,” Al Jefairi said. 

“Qatar has strong track record in sports having hosted more than 500 sporting international events in the past 15 years. Developing the sport talent and constantly investing in the world-class training facilities. In 2021 alone, the country hosted a different range of international sporting events including FIFA Arab Cup 2021, and the first ever Formula 1 Qatar Prix among others. Qatar has also signed a 10 year deal to host Formula 1 starting from 2023.”

Qatar has $20bn sport ecosystem and has long been on the journey to become a hub for international sporting excellence. She added that developing the sports sector is clearly expressed in the QNV 2030, which provides a long-term strategy for achieving diversification. Since 2010, Qatar has continued to develop infrastructure for one of the biggest games in the world with the promise to deliver a carbon neutral mega event. Since 2012, Qatar has designated second Tuesday  of February every year as National Sports Day to promote active participation in sports among its population, Al Jefairi said.

Global Sports

The Global Sport Nation Index ranked Qatar as the first in the Arab world and among the top 20 countries worldwide, which reinforces Qatar’s position as an attractive business destination, including for global sports companies.

Laila Al Jefairi pointed out that in order to develop and strengthen the local economy, QFC has adopted a strategy to encourage investment in the sport cluster.

The success of the QFC in attracting an increasing number of innovation sport tech firms is the testament for the growth of sport industry in the region

The Aspire Zone Foundation has set up the sports accelerator using the QFC platform which is a sports focused hub and is first of its kind in the region. 

Faisal Fahad Zainal, Project Manager, CEO Office, Aspire Zone Foundation, highlighted Qatar’s value proposition and how to expand business in Qatar during the event. AbdulAziz Salem Al Hababi, business development analyst at Aspire Zone Foundation, discussed how to blend entrepreneurship with global sport businesses.

300 Billion Investment

Qatar has developed massive infrastructure ahead of the cup, which could be the first widely attended sporting event since the outbreak of the Covid-19 pandemic.

It is building a new metro system, an airport expansion and an entirely new city, which Bloomberg estimates to be worth $300 billion.

Source: Business Insider