In November 2022, Qatar will host the most popular sporting event on the planet: the
FIFA World Cup.
According to some estimates, the World Cup will cost Qatar around £138 billion (US$220
billion).
This is around 60 times what South Africa spent on the 2010 FIFA World Cup, which cost
$3.5 billion.
As a result of such a large-scale event, it is no surprise that Qatar could potentially
reap numerous benefits that spread far beyond the realm of the sporting industry.
But...
why is Qatar spending so much money on this event?
What are the economic benefits for Qatar by hosting the FIFA World Cup in 2022?
Also, are there any risks involved in hosting such a huge event?
Let’s find out…
Over the years, Football has surpassed basketball as the most popular sport on the planet.
It is now played in more than 200 nations, and no other sport has attracted such a large
fan base.
And the Football World Cup is a massive event in terms of the statistics it generates for
everyone involved.
Of course, FIFA is the sole organisation in charge of arranging the event and has complete
control over all income, but everyone is pleased as long as they get a piece of the billion-dollar
profits.
A bidding procedure determines the World Cup host country, and it is a tight battle.
Hence, FIFA covers all of the World Cup’s operating costs, while the host country is
responsible for any infrastructural enhancements, such as stadiums and transportation networks.…
In fact, organizing such a large and popular event necessitates a significant investment,
particularly in the development and enhancement of world-class infrastructure.
As a result, if the country wins the offer, it will pique the interest of investors, potentially
boosting the economy.
So, Let’s talk about some interesting facts now…
The Gulf state will host the first World Cup in the Middle East, as well as the first in
a Muslim country, and no other event has ever taken place in the winter in the northern
hemisphere.
Some viewed FIFA's choice of Qatar to host the men's football World Cup in 2022 as a
risky move.
Others, including former FIFA President Sepp Blatter, thought it was a blunder.
Moreover, for some years, Saudi Arabia, the United Arab Emirates, and Bahrain had imposed
air, land and sea blockades on the country.
Because of that, it was difficult for the country to carry out most of the developmental
procedures.
However, the Qatari government remedied the situation by contracting with additional suppliers
and contractors to continue the projects' implementation.
The transport blockade is also over and the borders are now open again.
The World Cup final in Qatar in November will be unlike any other, and the logistical challenges
that organizers will encounter, from providing enough housing to coping with rowdy supporters,
will only increase.
Now…
Multiple questions must be popping up in your head right now, Like…
is Qatar really spending $220 billion on the FIFA World Cup, 2022?
OR Can Qatar afford to spend more than its GDP
on hosting the FIFA World Cup 2022?
Well…
It is a vast amount.
But Qatar can afford it.
The little country, which has a population of less than three million people, is rich
in oil and gas.
With a GDP per capita of US$62,000 (£46,000), it is one of the world's wealthiest countries.
Qatar has the financial means to spend more than previous World Cup hosts.
Yet while Qatar’s bill for hosting the World Cup looks almost otherworldly, the breakdown
of costs points to its wider aims of economic diversification.
Let’s breakdown all the expenses here to get a clear picture…
A total of $48 billion will be spent on air-conditioned stadiums, $77 billion on amenities for soccer
fans and players from around the world, and $45 billion on the development of Lusail City.
Qatar has also set aside $50 billion to improve its transportation infrastructure, including
the construction of new rail and metro systems.
An 85-kilometer railway network will be built as part of the $3 billion project, which will
comprise an east coast link, a high-speed link, a freight link, and a light rail system.
Qatar's government plans to spend US$17 billion to expand its hotel and guest housing capacity
to 80,000 rooms, well exceeding FIFA's requirement of 60,000 rooms.
The primary transit gateway for the flood of travelers will be the New Doha International
Airport, which is now undergoing a $11 billion expansion.
So…
What benefits Qatar is getting for spending such a large chunk of money?
Why does Qatar want to host this World Cup?
The literal response would be that Qatar has a specific affinity for sports.
Qatar has successfully hosted a number of international sporting events.
It has previously held Asian games.
However, the actual answer is that it is a wealthy country that can afford to hold such
a large event.
In fact, Qatar's government is always looking for new ways to diversify its economy, and
hosting international events and conferences, is one of them.
The World Cup is a major worldwide event that has a significant economic impact on the hosting
country.
Therefore, Qatar wants to host this event.
Another main factor is that the Qatari GDP will show a noticeable rise.
Productions, incomes, and expenditures would all increase as Qatar's GDP rises.
"The economy is forecast to expand by 3% over the medium term, aided by sustained investments
tied to hosting the football world cup," according to World Bank statistics.
Furthermore, there is predicted to be an increase in investment in the country, as a large number
of visitors returning to Qatar, and an increasing rate of employment will improve the country's
residents' living conditions.
Qatar will attract several local and international corporations to invest in various new projects
as a result of hosting the World Cup 2022.
Many local businesses will open to supply the local market with the supplies needed
to complete the projects.
These businesses will be able to increase their output.
And by the end of 2022, the production number will be modified.
The development of infrastructure for the purpose of hosting and entertaining guests
will provide the country with several economic benefits.
Qatar estimates that hosting the FIFA World Cup will result in the creation of more than
1.5 million new jobs in major industries such as construction, real estate, and hospitality.
It is also important to highlight that the predicted benefits of hosting the World Cup
include not just the event itself, but also the opportunity to promote Qatar's tourism
sector.
After the World Cup, the estimated number of tourists is expected to climb over 3.5
million, with a potential of 7.4 million by 2030.
As we can see, the development of the service and sports industries has a great deal of
potential for economic growth.
Investments in service facilities and 12 stadiums, would help Qatar diversify its economy away
from its current reliance on petroleum and gas and toward its service, tourist, and sports
industries.
Finally, Qatar's inflation is expected to stabilize at 2% by 2023, up from 0.23 percent
now.
Overall, the World Cup's economic impact on Qatar is likely to be even greater, owing
to the massive boost in its GDP that occurred as a result of its current preparations for
the Cup, and forecasts for its GDP after the Cup are expected to be maintained, if not
higher.
With this in mind, it appears that hosting the World Cup gives a lot of opportunity for
a country to differentiate its industries and expand its infrastructure and service
sectors, and as a result, it prepares the path for a country to experience significant
growth.
Moreover, it is needless to say that the current development plans and investment that Qatar
has made in its infrastructure, service, and sports industries have clearly demonstrated
their potential and predicted growth, so we can expect growth to be particularly centered
around these industries in both the short- and long-term.
So…
Now that we know all the benefits of hosting such a huge event, you must probably be thinking:
are there any risks involved as well?
Qatar's preparations for the 2022 World Cup have been fraught with controversy.
Qatari corruption allegations have dominated the news in recent months, with many believing
that their hosting of the World Cup was linked to FIFA and other political authorities being
bribed.
The existing situation of construction workers engaged to create the World Cup stadiums has
raised serious human rights issues.
Qatar has vowed to improve its safety and living standards for migrant workers but policies
have yet to be implemented, and human rights groups are suspicious of these claims.
There's also the weather to consider.
While FIFA has relocated the tournament from its traditional June-July schedule to November-December,
supporters will still face hot temperatures as they travel between venues.
The new calendar also means that the 2022 World Cup will clash with the Premier League's
schedule, which will enrage many football fans.
Then there is the issue of how Qatar will deal with an excess of stadiums and hotel
rooms following the tournament.
After hosting the event in 2010, South Africa experienced a similar difficulty, and Qatar,
which has a major football market to cater to close by, threatens to lose much more.
Finally, with Qatar locked off from its natural and cultural environment, first-time Gulf
visitors will have little to see other than sports.
The majority of the region's famed historical monuments are in Saudi Arabia, and some of
the world's top museums are in the United Arab Emirates, so travelers stuck in Qatar
may be disappointed with their Gulf trip.
So…
Qatar's problems are just getting started.
To hold a successful event, it must overcome significant logistical challenges and accommodate
supporters from all over the world who have different cultural and religious values.
What are your views about this?
Is it right for Qatar to host the football World Cup this year?
Do share your views in the comment section below.
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