Dr. Mahfoud Amara
Investment in global sports by Gulf Cooperation Council (GCC) countries serves the purpose of economic diversification, which involves boosting various sectors and establishing investments in service, hospitality, tourism, retail, real estate, transportation, and technology.
This approach also includes seeking new investment opportunities in Europe, North America, and Asia. Sports, such as football, golf, and more recently NBA, are effective means for national branding and networking among business and political establishments, particularly in cosmopolitan cities like Paris, Manchester, Newcastle, and Washington.
On a domestic level, countries in the GCC region can experience overall positive impacts by hosting mega sports events. These events contribute to local development and capacity building in event management, marketing, security, logistics, media, and transportation, among other areas.
Additionally, they boost national confidence and pride, demonstrating the capability to organise successful world cups and attract the best players to local leagues.
The UAE was one of the pioneers in this field, with a strong focus on sports, entertainment, retail, and sports tourism. Investments were made in golf, tennis, and horse riding.
Bahrain followed suit by hosting Formula 1, and Abu Dhabi which made direct investments in the automobile/motor industry. Abu Dhabi’s purchase of Manchester City was then followed by Qatar’s acquisition of PSG.
Since 2006, Qatar has shifted its strategy towards hosting international sports events, including handball, track and field, gymnastics, and swimming World Championships, tennis ATP and WTA tours, world beach games, and motor racing competitions.
This strategy reached a milestone with the successful bid to host the 2022 FIFA World Cup, making it the first mega sporting event to be held by a majority Arab and Muslim country in the Middle East.
As a new major player, Saudi Arabia has been learning from and observing the experiences and models of its neighboring countries in utilising sports for image-making, branding, and economic diversification. Saudi Arabia has engaged in purchasing foreign clubs and sponsoring major sporting events.
Additionally, the country actively pursues the hosting of major and mega sports events, including the Asian Winter Games, Asian Games, and the bid for hosting the FIFA World Cup.
Leveraging its size and demography, Saudi Arabia aims to develop a domestic sports industry and professionalise its football league. With a large domestic market and a vibrant fan base, particularly for football, Saudi Arabia has the capacity to do so successfully.
The country benefits from the involvement of large national and private corporations, especially in industries such as petroleum and telecommunications. Moreover, there is the potential to attract fans from neighboring countries, leveraging family ties and regional connections.
However, it is important to acknowledge the inherent risks associated with the growing ambitions of GCC countries in sports, which are often externally interpreted in political and ideological terms (challenging the traditional centre-periphery power dynamics in international sport system).
Financial risks are also a concern. Significant investments focused on international football and sports stars, particularly those close to retirement, may come at the expense of developing local and national talents and the elite sports development system.
Additionally, there is a risk of widening the gap between top-tier clubs and the rest of the league, with a few teams dominating the league due to their ability to attract more financial resources and investments.
Dr. Mahfoud Amara is an Associate Professor in Sport Social Sciences and Management at Qatar University.
