Dr Mehmood Ul Hassan Khan; Executive Director: The Center for South Asia & International Studies (CSAIS), Islamabad ,Regional Expert: Qatar & GCC
Qatar the host of FIFA World Cup 2022 has set a new trend in sports history and diplomacy by inaugurating the playing stadiums with recitation of Holy Quar ”Surah Ar-Rahman” which has already spread a holy feeling and cultural unity among different faiths. Another “heart-winning” moment is that a Palestinian origin man has been nominated as its World-cup Ambassador. Alcohol has been banned and strictly advised to properly dress-up all vividly reflects Qatar’s rich traditions, culture and staunch belief in eco-friendly environment.
Despite all sponsored controversies Qatar has succeeded to make use of the World Cup to showcase its incredible expansion from a forgotten desert in the GCC to a sprawling metropolitan and a prominent transit hub. It vividly reflects its rapid expansion from a small pearl-diving enclave to Gulf metropolis and expects it to add as much as $20 billion to its economy in short, medium and long terms directly or indirectly.
Additionally, despite social media “Tik-Tok” and the Western media sponsored “Talk-Shak” programs the leadership and policy makers of Qatar have succeeded to overcome all hurdles and planted controversies to hold the FIFA World Cup 2022.
It has great significance in terms of economy, politics, social harmony, business activities (hotel, aviation, advertising, digital marketing, investments, retail, consumption, construction, real estate) not only for the host country Qatar but also has spillover socio-economic and political trans-regional benefits for all the GCC countries mainly, UAE, Saudi Arabia, Kuwait, Oman, Jordan, Bahrain, and even Iran.
Pakistan has also received substantial gains from the Qatar FIFA World Cup 2022 by deploying the security contingents. Pakistani huge human capital along with skilled and unskilled labour forces has been in Qatar which has further increased worker remittances in the country. Moreover, Pakistani manufactured footballs will be used during the FIFA World Cup 2022 which is indeed a pride moment for Pakistan and its entrepreneurs.
Qatar has already made history by bringing the World Cup to the Middle East for the first time. It is again national pride for all Middle East countries and Muslims living around the globe that being the smallest host country ever organizes the biggest sports event on planet.
Qatar has built eight air-cooled, zero-carbon venues designed by world-renowned architects. It has also built fan zones, training sites and other outdoor areas for tourists from scratch. Moreover, the government of Qatar has complete plan of using these eight stadiums for the development of local sports, immense community development, modern health facilities, educational compatibilities and event management after the World Cup 2022 which is commendable.
Qatar has rich history and diversified expertise of holding sports events in its country. In the past it has hosted other sports events like the IAAF World Athletics Championships, the Asian Football Confederation Cup and the World Men’s Handball Championship, and will be holding the Asian Games in 2030, the FIFA World Cup is the largest high-profile event to take place in Qatar.
Qatar has become an ideal place for lavish hospitality and colorful tourism and now it is welcoming millions of fans and teams from around the world and giving a boost to businesses and investors across the region. Hopefully, it will further advance the country’s infrastructure and foreign policy goals. The seminal event promises to provide short and long-term economic benefits and the potential for soft-power gains.
Frankly speaking FIFA World Cup is the strategic extension of its National Vision 2030. It is indeed a giant step towards further diversification of economy. It is a grand policy initiative of the government of Qatar to transform its economy, politics, society, administration, business and last but not least investment’s potential. It is a first step towards joining the global society through marvelous infrastructure development, modern communication channels, IT, ICT and AI connectivity.
According to different estimations, more than 1.5 million visitors will visit Qatar during the month-long event. In addition to building state-of-the-art stadiums, Qatar has introduced a modern metro system, expanded its airport, and constructed new districts within the capital city, Doha.
It seems that the long-term benefit of World Cup infrastructure is Qatar’s integration of national policies, initiatives, and projects under one flagship orientation.
Qatar has also set to make history, as this will be the first World Cup in the northern hemisphere that will not be held during summer. The tournament is instead scheduled for late November until mid-December. The final will be held on 18 December 2022, which is also Qatar’s National Day. The Supreme Committee for Delivery and Legacy (SC) is the main body responsible for the oversight and delivery of the global tournament.
The event represents the coronation of Qatar’s longstanding football strategy. In the past two decades, Doha has invested considerably in international sports, which have become a soft power tool per se at the country’s disposal, and more generally, also as a source of national pride for the wealthy states of the Gulf.
For Qatar, hosting the World Cup is a triumph of sports, diplomacy, and constructive dialogue and development policies after its isolation by the other GCC states during the embargo of 2017 and 2021. It is also a clear projection of its soft power with the substantial clout of its position as one of the world’s top three exporters of Liquefied Natural Gas (LNG).
It estimates that the Dubai-Doha route will see 48 flights a day, to and from the two capitals, while Saudi Arabia plans to use five airports to transport fans to the Qatari capital.
The economic impact of FIFA 2022 is not restricted to Qatar. The event is likely benefit Saudi Arabia, Kuwait, UAE, and Bahrain. The occupancy rate of hotels in Kuwait will increase by 24 percent and Bahrain by 9 percent.
In particular, the hotels in Saudi Arabia and Dubai are already overbooked. Fly Dubai and Emirates are expected to operate 48 flights per day to Qatar. The tournament will significantly benefit the regional economy.
In this regard, the latest published report of the S&P Global (2022) clearly indicates that the FIFA World Cup 2022 in Qatar is set to give a further boost to Gulf Cooperation Council (GCC) economies. According to its report titled “World Cup Will Give an Additional Near Term Boost to GCC”, Dubai will be one of the major beneficiaries outside of Qatar, given its geographical proximity, a well-established tourism offering, flight connections and multiple-entry tourist visas for World Cup ticket holders. Meanwhile, Air Arabia will be operating 14 shuttle flights daily from Sharjah to Doha.
Travel and aviation sectors will not be the only sectors benefiting from the tournament. The retail sector stands to gain, too.
Despite western propaganda the government of Qatar investments in infrastructural development has made the country resilient. Qatar successfully survived the challenges of the blockade and COVID-19. Significantly, the real estate sector has shown tremendous progress in recent years. The real estate industry’s growth supported the insurance sector’s development. Risk management services increased sharply and supported the industry.
Hopefully, the tourism sector will experience a boost during the event. The arrival of tourists is expected to reach five lakh per day. The estimated number of tourists forecasted using the Time Demand Model shows 1.7 million expected visitors. Moreover, around 3.08 million tickets have already been sold for this biggest sport event. The average capacity of stadiums ranges between 40,000 and 80,000 spectators. The transportation sector will also experience a sharp increase in revenue.
The airlines will also benefit from the event. According to the estimates of FIFA, around 150,000 passengers will be travelling per day during the event. These numbers are expected to increase abnormally during the knockout round. The number of passengers will be the highest around the final match.
Qatar also experienced an increase in foreign investment, which will likely increase in the coming years. Many brands and companies invested in Qatar to serve the large customer base during the tournament. The higher investment in businesses is creating more employment opportunities. The tournament is expected to add 1.5 million jobs to Qatar’s economy.
The government of Qatar invested more than $200 billion to develop modern infrastructure. Sustainable public transport systems, smart cities, and energy projects resulted in a sustainable economy. The modern developed infrastructure of Qatar is expected to enhance the multiplying effect on GDP. The GDP is expected to increase at a higher rate post-tournament period. FIFA 2022 improved the economic diversification of Qatar.
The projects initiated by the government of Qatar to host FIFA 2022 have a long-term impact on Qatar’s economy. For instance, the Doha Metro project reduces the road traffic burden. The milestone project offers a sustainable public transportation system to the general public. Moreover, the project will significantly reduce carbon emissions to preserve the environment. It will also decrease the dependence on fuel consumed by vehicles. The project will also contribute to the revenue of the government.
The investment in the infrastructure is speeding up the economic diversification of Qatar. The finance, real estate, tourism, hospitality, health, and transportation sector of Qatar are expected to experience a boom due to FIFA World Cup 2022. The tournament’s impact on Qatar’s economy will affect economic growth in the coming years. Through effective policies, the government can sustain Qatar’s economic growth even after the tournament in the future. FIFA 2022 will significantly reduce the dependence of Qatar on the hydrocarbon industry.
According to World Bank reports “Qatar’s economy is expected to expand by 3 percent over the medium term, helped by continued investments related to hosting the football world cup.” The hosting country will be able to produce more and increase the GDP, which mean that the consumption, investment, government purchases and net exports will increase. The average of consumption will increase as there will be many tourists who will attend this event.
By hosting 2022 Qatar will attract many local and international companies to invest in different new projects. Many local firms will open to provide the local market with required supplies that be used to finalize the projects.
To conclude, Qatar anticipates that successful holding of the FIFA World Cup will have economic impact of US$ 20 billion. The expected gain is equivalent to about 11 percent of the country’s gross domestic product in 2019.
Keeping in view the looming threats of viral infections and diseases Qatar has planned to only allow fully vaccinated fans against COVID-19 in the stadium. Fans flying from other countries will be vaccinated if not fully vaccinated for which Qatar is trying to secure a million dozen vaccine doses. The World Cup is sponsored by major brands including Adidas AG and Coca-Cola.
To remove all spells of paid campaigns the government of Qatar has itself approached the UN International Labour Oragnization to work jointly for the labour laws which has successfully mitigated all false, fake and fictional propaganda of the west.
Hopefully, the World Cup would increase Doha’s soft power and add political influence, especially since more such events are in the pipeline. Qatar FIFA World Cup has showcased Arab unity and built bridges between the Arab and Western world.
The upcoming Qatar World Cup has created an air of optimism in the tourism sector, with an increase in hotel bookings across the UAE for the period of November and beyond.”
Saudi Arabia has seen a spike in tourists due to the World Cup, and a 106 percent increase in occupancy is expected in Makkah compared to 2021. Hotel occupancy in Bahrain can go up by 9 percent, Kuwait around 24 percent, and Jordan will be 33 percent busier.
Surprisingly, even Iran expects an increase in tourism and it has reached a series of agreements with Qatar to host football fans.
It seems that Qatar government has rightly focused to shift from infrastructure development to tourism and service sector. Its investments in infrastructural development have further strengthened its National Vision 2030. It has further enhanced the chances of further economic diversification.
Hopefully, it will further accelerate its economy, real estate, hotel industry, tourism, community development, service sector, banking & financial sector and insurance industry. It may further boost its Islamic banking potential in the days to come. Successful holding and splendid start of FIFA World Cup 2022 has already lift the national spirits of Qatar and its people which is indeed a pride for all the GCC, MENA, Middle East and all the Muslim countries living around the globe.
