Views /Opinion

Counting the economic benefits of hosting Qatar 2022

In 2014, the President of the International Football Association (FIFA) said that football is the largest economic project in the world, and there is no company that generates more revenues than this sport. 

It suffices to point out that FIFA signed contracts to the tunes of $1.5b against TV broadcasting of the World Cup in Russia 2018 and Qatar 2022. The statement of the FIFA President is hundred percent true. This is evidenced by what is revealed by the US Treasury statistics that the sports industry ranks fifth in the US economy, with annual income reaching $67.6bn in 1999 and then increased to $155bn in 2003, then it reached $500bn in 2012 and 2013.

It is currently estimated at 250 billion dollars, which is more than twice what the auto industry generates and seven times what Hollywood brings in. 

We all remember that the 2014 World Cup in Brazil was held amid massive popular demonstrations and protests.

Protesters denounced the government’s spending huge amounts of money on building projects for the World Cup without spending it on projects alleviating poverty and treating the disease suffered by the people living under abject poverty. However, after the World Cup was held, the country earned $113 billion, six times what was spent on preparing for it, Brazilians today hope that their country will host the event again.

To make the picture clearer regarding the role football plays in boosting the economic, it is indicated that the number of clubs sponsored by FIFA is 300,000, with a membership of 240 million players, of whom 30 million are females. In addition, the number of member states in FIFA exceeds the number of members of the United Nations.

On this sports live one billion people out of 7 billion who are the world’s population.

This introduction was necessary to enter into the economic returns that Qatar derives from hosting the 2022 World Cup, and on the occasion of the unveiling of the countdown clock by the Supreme Committee for Delivery and Legacy, indicating the start of the whistle after less than a year.

In principle, Qatar’s victory in hosting the tournament enabled it to bring in billions of investments to inject them into the Qatari economy, especially in infrastructure, including sports, which is a huge development in this vital aspect. 

Qatar is considered at the forefront of the countries with highly advanced infrastructure, which is an unmistakable fact today, though having the feel of it will be more fulfilling when projects are completed and the tournament is held. After the end of the event and return of the delegations and fans to their countries, the fruits will remain for us. 

The establishment of the tournament necessitates achieving unprecedented progress in the vital services sector, in the forefront of which are tourism, hotel facilities, transport and communication services. These are the frontline sectors that receive Qatar’s guests during the World Cup, and the economic return for these sectors in general, not for Qatar alone, is reflected in their contribution to a large percentage of the GDP and to the diversification of sources of income.

Specifically, Qatar Airways will achieve greater gains than expected, given the expansion of its flights to include all continents of the world, which made it one of the main factors in revitalising the World Cup economy. Tourism sector, hotel services, a series of unique museums and the Qatar Foundation with its highly advanced institutions, will put our country on the tourist attraction map. 

An opportunity for Qatar’s merchants is placed on a plate of gold, as the trade sector will in turn achieve great growth. It is usually a habit that there is global interest in everything about the host country of the World Cup, starting with trade, environment, human element, geography and everything the host country is famous for. I hope that businesses and merchants will be well-prepared for the event, because demand of these types of goods and services will be higher than we expect.

There is another great gain not to be underestimated, which will make people talk about Qatar continuously in international forums. It is in fact an economic, political and cultural gain, represented in the development of alternative and environmentally-friendly energy sources, especially solar energy which will transform the World Cup stadiums into an atmosphere suitable for sports activities regardless of the weather condition outdoors. 

This will allow Qatar to establish a permanent center for the development of alternative energy sources. We should bear in mind the international concern about the repercussions of climate change and global warming that has become a nightmare for countries.

And last but not least, Qatar has achieved the highest rates of human development. Its youth have acquired the utmost skills in management and organisation. Doha has proudly deserved the titles of the capital of sports, culture and conferences, and God willing, the developed economy. 

In conclusion, sports economics has become a study module in some universities in the world, focusing on studying the sports activity from an economic point of view as an industry that has supply and demand. So, welcome to the World Cup and thank you to the Supreme Committee for Projects and Legacy.

Dr. Buthaina Al Ansari is a Qatari academic and author. She held many senior  positions in government and private sectors and higher education institutions including Qatar University.