Boost for Qatar in a World Cup of firsts
Qatar is quietly confident on the eve of the World Cup, in terms of both hosting a successful tournament, and boosting its credentials as a football-playing nation
The World Cup of 2022, hosted by Qatar, registers some notable firsts: the first in a Middle Eastern country, the first in the northern hemisphere winter, and the first by a comparatively small country, in terms of population.
Even before a ball has been kicked, there have been some sporting and economic achievements of note that have already been registered.
For those fans questioning the footballing pedigree of Qatar, their views may be out of date. There are thriving local leagues in the country, and the stadiums will have an ongoing use after the tournament. On the pitch, standards have improved in recent years, helped by the awarding of the World Cup with the national side now placed at 50th in the FIFA world rankings.
In financial terms, the revenue target has been met in advance of the tournament beginning, from ticket sales, sponsorship and hospitality. An analysis by Fitch Solutions, the economics consultancy, indicated a positive boost to Qatar’s economy overall from hosting the tournament. Higher consumption, tourism and services exports outweighed risks such as a potential uptick to inflation.
These games bring about disruption to the European leagues, having to take a mid-winter break from domestic competition for the first time. It is unlikely to be the last time that this occurs. There is a clear policy from FIFA to spread the game around the world. Where once the nations from Europe and South America dominated in terms of the best teams and hosting the major tournaments, it is now truly a global sport. An estimated four billion people will watch this year’s final, around half the world’s population – a truly staggering statistic.
The capital expenditure by Qatar in preparation for the games has also been huge. The figure of $200 billion has been cited, inviting criticism, but it is a misleading statistic because it refers to modernizing the infrastructure of the country as a whole – including new roads, an airport, other transport infrastructures and sewage systems. These investments will have considerable economic benefits for years to come. When the USA hosted the games in 1994, it already had the infrastructure of a first world nation, so such sums were unnecessary.
The spend directly on the stadiums in Qatar is around $7 billion, and some of the cost includes ensuring energy efficiency in construction and stadium use, with minimal greenhouse gas emissions. In a similar vein, numerous pedestrianized spaces, cycle lanes and green spaces have been created in the environs of the stadiums.
In preparation for the World Cup, FIFA monitors progress carefully. There are monthly inspections to ensure that standards are adhered to. FIFA officials reserve the right to withdraw permission to host the games until the preparations are well advanced.
Ultimately, sport is more about the experience than a cost-benefit analysis. But a country has to ensure economic viability. In the next article, I will discuss the extent to which hosting the World Cup benefits the nation, and whether the benefits are increasing as the scale and the profile of the tournament has grown.
First published in Gulf Times on 21 November 2022.