Fatma Al-Sharshani
The FIFA World Cup Qatar 2022 will contribute $17 billion to Qatar’s economy. Initially, a contribution of $20 billion was estimated, which was reduced to $17 billion later. This contribution is expected during the event.
Moscow earned an additional $14 billion after hosting the FIFA World Cup (Siddiqui, 2022). The numbers of Qatar are expected to be higher. 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% and Bahrain by 9%.
In particular, the hotels in Saudi Arabia and Dubai are already overbooked. Fly Dubai and Emirates are expected to operate 45 flights per day to Qatar. The tournament will significantly benefit the regional economy (Siddiqui, 2022).
The investment in projects by the government of Qatar to host FIFA World Cup 2022 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 (Oxford Business Group, 2022).
The tourism sector will experience a boost during the event. On the busiest days, 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 are expected to be sold during the 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 110,000 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 (ICAO, 2022).
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 (Allison et al., 2018). The growing economy and developing infrastructure created employment and the sustained unemployment rate of 0.10%, the lowest in the region (World Bank, 2022).
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 contribution from the oil and gas sector decreased to 48% in 2017 from 60% in 2011 (Oxford Business Group, 2022). The contribution of tourism to the economy is expected to increase in the future. Undoubtedly, FIFA 2022 will leverage the economic growth of Qatar and other countries in the region.
Qatar is also using the investment in infrastructure for a sustainable economy. 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 (Oxford Business Group, 2022). FIFA 2022 will significantly reduce the dependence of Qatar on the hydrocarbon industry.
Fatma Al-Sharshani ([email protected]) is a Qatari student living in California
