Introduction
The 2022 FIFA World Cup in Qatar was the first World Cup to be held in the Middle East and the first to be held in an Arab country. With the announcement of Qatar as the host nation, there was much debate surrounding the event’s economic impact and legacy. On the one hand, the World Cup was expected to bring a large influx of money and tourism to the country, while on the other hand, there are several arguments against its economic impact and legacy. This paper will provide an overview of the economic impact and legacy of the 2022 FIFA World Cup in Qatar. It will start by examining the arguments for the economic impact and legacy of the tournament and then consider the arguments against it. It will then look at empirical studies that have been conducted on the economic impact of the event. Lastly, a summary as to why Qatar chose to host the 2022 FIFA World Cup.
Arguments for the economic impact and legacy of the 2022 FIFA World Cup in Qatar.
Kabbani argued that Qatar’s 2022 FIFA World Cup would significantly impact the country’s economic growth. Forecasts indicate that Qatar’s Gross Domestic Product (GDP) is estimated to grow by 3.4 percent in 2022 and 2023 (Kabbani, 2022, p. 3). This growth is expected to be driven by increased investment in Qatar’s transport links, especially new roads, railways, and airports. For example, 10 billion dollars were spent by Russia in 2018 to host the FWC. Between 2013 and 2018, the economic impact on Russia totaled USD 13 billion, or almost 1% of GDP annually (Chankuna, 2022, p. 2). The organizing team’s study committee estimated that by 2023, the economic effects across multiple industries might total USD 30.8 billion. Within five years, many sectors of the country had a return triple the initial investment amount. The 2022 FIFA World Cup in Qatar is a significant event that will bring a massive influx of people and resources to the country. To ensure that the event is a success, Qatar invested heavily in its transport links to ensure that all participants and spectators can move around the country quickly and safely. The most visible investment in Qatar’s transport links was the construction of new roads. Qatar built a network of highways and expressways linking the capital Doha with other cities and the various stadiums that will host the World Cup matches. The country also built additional roads to ensure that people have easy access to the stadiums, as well as to tourist attractions. In addition to roads, Qatar also invested in railways. The government built a high-speed railway system connecting the cities of Doha, Al Khor, and Lusail. This railway network provided a fast and reliable way of traveling between the host cities during the tournament. The other primary transport link developed in Qatar was airports. The country already had two international airports in Doha and Al Khor, but to serve the increased number of visitors during the World Cup, Qatar planned to build a third airport in Lusail. This new airport was expected to be the largest in the Middle East and can handle up to 10 million passengers annuallyannually. Moreover, Qatar also invested in transport infrastructure such as bus systems and ferry services. This enabled people to travel around the country quickly and easily and ensured that the 2022 FIFA World Cup in Qatar would be a success.
McQuaid also argued that the FIFA World Cup would result in heavy infrastructure investment. The infrastructure improvements needed for the World Cup will likely bring the most economic impact to Qatar through the construction of stadiums, roads, and hotels for the games. For example, over 74% of the USD 2.3 billion allocated by South Africa went to transportation, building, and repair of stadiums. After hosting the FWC in 2010, they gained significant worldwide exposure and visibility among the general public (Chankuna, 2022, p. 4). Additionally, the increased infrastructure will likely benefit Qatar’s citizens and tourists in the long run. The construction of new roads and airports will facilitate transportation to and within Qatar. In contrast, the new stadiums and hotels will provide long-term entertainment and accommodation options for visitors and locals alike. Furthermore, the construction of the infrastructure needed to host the 2022 FIFA World Cup will also positively impact the hospitality and retail sectors. The influx of tourists during the tournament is expected to generate demand for hotel rooms, restaurants, and other services related to hospitality. This increased demand is likely to create jobs in the hospitality industry.
Conversely, Kabbani (2022) argued that the 2022 FIFA World Cup in Qatar presents a unique opportunity for the country to attract foreign direct investment (FDI) and diversify its economy. Qatar has taken several measures to make the country more attractive to foreign investors. In 2018, Qatar allowed foreign investors to own 100 percent of capital in all sectors, eliminating the previous limit of 49 percent foreign ownership (Kabbani, 2022, p. 3). Additionally, in 2020, Qatar introduced a public-private partnership law that allows investors to co-own infrastructure assets developed through long-term concessions. The upcoming World Cup provides a platform for Qatar to showcase its economic potential and create a more attractive international profile. Foreign investors are expected to be drawn to Qatar’s World Cup-related infrastructure developments, economic growth, and more attractive global image.
Also, McQuaid argued that the 2022 World Cup will lead to the creation of jobs. Qatar will generate over 1.5 million new employments, mainly in hospitality, construction, and real estate (McQuaid, 2022, pg. 3). This prediction is based on the assumption that Qatar will be able to host the World Cup successfully. Before the World Cup, Qatar was in the process of building new infrastructure to accommodate the influx of visitors to the country, and the country is also in the process of building nine new stadiums and remodeling three existing stadiums. These construction projects are expected to create hundreds of thousands of jobs in Qatar, and many of these jobs will be in the construction, real estate, and hospitality industries.
Arguments against the economic impact and legacy of the 2022 FIFA World Cup in Qatar
The 2022 FIFA World Cup in Qatar has been surrounded by controversy since its announcement in 2010. Despite the potential for this event to bring a large influx of money and tourism to the country, there are a number of arguments against its economic impact and legacy. One of the key concerns is the high cost of the event. According to Mohammed &Qoronfleh (2022, p. 2), Qatar is investing an estimated $220 billion into the 2022 FIFA World Cup. This is significantly higher than any other World Cup. For example, Russia spent $13 billion for the 2018. This large investment raises questions about the sustainability of the event and whether it will be economically beneficial for Qatar in the long term. The high cost of the event is largely due to the infrastructure projects that are being undertaken for the tournament. Qatar had to construct stadiums, roads, airports and railways to accommodate the influx of tourists. This is a huge undertaking and is a significant portion of the cost of the event. Additionally, Qatar was forced to pay for the wages of all of the extra labor that is needed to complete the work. This is an additional burden on the country and will not necessarily lead to an increase in revenue. The cost of the tournament also has implications for the legacy it leaves behind. It is expected that much of the infrastructure built for the tournament will be abandoned once it is over. This means that the money spent on the event will not have a long-term economic benefit for Qatar. In fact, Qatar may not see any return on its investment for many years. This could potentially lead to economic hardship in the future as Qatar is required to pay off the debt associated with the tournament. Furthermore, the cost of the tournament may mean that other areas of the country are neglected. It is possible that money that could have been used for social and economic development projects is instead being used to fund the World Cup. This could lead to a widening of the inequality gap between the wealthy and poorer areas of Qatar.
The other argument against the event is the lack of sustainability of its economic impact and legacy. Qatar is an extremely small and young country with a population of 2.6 million, and its economy is heavily reliant on imported goods and services. It is expected that the country will need to invest heavily in infrastructure, accommodation and other services to meet the demands of the World Cup. This could lead to long-term economic instability and a lack of sustainability once the tournament has finished. The infrastructure that Qatar will need to build for the World Cup is significant and expensive. This includes 12 new stadiums, new airports, roads, and hotels. The cost of building these stadiums alone is very expensive. Furthermore, Qatar will also need to invest in additional infrastructure such as transport, security and medical services. All of this investment will be necessary to meet the demands of the World Cup, but it is unlikely that Qatar will be able to recoup these costs once the tournament has finished. The long-term sustainability of the economic impact of the World Cup is also questionable. There is a risk that the infrastructure built for the tournament will be under- used after the event is over. This could lead to a situation in which Qatar has spent billions of dollars on infrastructure that is not being used, resulting in a large loss of money. It is also possible that the World Cup will lead to an increase in tourism and investment in Qatar, but this could also be unsustainable in the long-term. Another issue is that Qatar is dependent on imported goods and services for its economy. This means that the country is not able to make the most of the economic impact of the World Cup, as it cannot take full advantage of the opportunities that it presents. This could lead to a situation in which Qatar does not benefit from the economic impact of the World Cup as much as other countries would.
Empirical Studies
According to Global Data (2022, p. 1), the economy is expected to grow at a faster pace of 4.6% in 2022 compared to 1.5% in 2021, largely due to the influx of tourists and investments in infrastructure. The number of international arrivals to Qatar is projected to rise by 162%, while investments to upgrade roads, railways, and airports are expected to boost the construction sector by 7.3%. Additionally, the tournament is expected to generate a total of $1.7 billion in sponsorship revenue. With the World Cup providing an opportunity to showcase the country, Qatar is expected to benefit from an increase in foreign direct investment (FDI). This could further help to diversify the economy away from its reliance on oil and gas, as well as open up new export markets. The tournament is also expected to create thousands of jobs in the hospitality, power generation, 5G telecommunications and transport sectors. This could help to reduce the unemployment rate in Qatar to 0.7% in 2022 from 1.8% in 2021.
According to Mohammed &Qoronfleh (2022, p. 2) research, the economic impact of Qatar hosting the 2022 FIFA World Cup is expected to be substantial. In terms of GDP, Qatar is ranks 5th and the government has invested 220 billion USD into the tournament, which is 17 times higher than the Russian investment for the 2018 World Cup. This funding is largely directed towards infrastructure development. As such, the tournament will boost the Qatar’s sporting industry, with the construction of new stadiums and the development of infrastructure for the tournament. This will help to create jobs, attract new businesses to the region and generate income for the local population. Additionally, the 2022 World Cup is expected to bring at least one million people to visit the country during the tournament, resulting in a boost to the tourism industry and increased opportunities for investment in the hospitality sector. The increased spending from tourists and businesses looking to take advantage of the increased demand for services will help to stimulate the economy. Moreover, the tournament is likely to be a catalyst for further innovation and development in the technology, construction, and communications sectors. The tournament will also provide a boost to the Qatar’s sporting industry, with the construction of new stadiums and the development of infrastructure for the tournament. This will help to create jobs and attract new businesses to the region.
According to the study by Chankuna (2022), the 2022 Qatar World Cup (FWC) will have a significant economic impact on both host and non-host city residents. For example, during the 2018 FWC in Russia, the host city of Doha created and managed up to 315,000 jobs in order to prepare and organize the event. This will result in the unemployment rate decreasing from 5.8% to 4.8%, its lowest rate in 20 years (Chankuna, 2022, p. 2). Additionally, the event is expected to bring in significant revenue through the tourism industry, as well as through business ventures that are created by visitors. Non-host city residents are also expected to benefit from the economic impact of the FWC, as visitors from outside of the host city will bring in money through tourism, shopping, and other activities. Furthermore, non-host city residents may also be able to take advantage of business opportunities created by the event. For example, many local businesses may experience increased demand for their products and services, as well as the opportunity to partner with international companies to provide goods and services for the event.
Summary as to why Qatar chose to host the 2022 FIFA World Cup
Qatar chose to host the 2022 FIFA World Cup in 2022 for several reasons. Firstly, Qatar is a developing country that is looking to make a name for itself on the world stage. Hosting the 2022 FIFA World Cup provides Qatar with an opportunity to showcase its culture and history to the world. Additionally, hosting the World Cup will also provide Qatar with an opportunity to raise its profile and attract more foreign investment into the country. Conversely, hosting the World Cup will provide Qatar with the chance to significantly improve its infrastructure. Qatar has already invested heavily in building new stadiums, roads, and airports. This will provide a long-term benefit to Qatar, as the infrastructure improvements will make the country more attractive to tourists and foreign investors.
Moreover, Qatar has a strong commitment to sustainability, which is an important factor in hosting the World Cup. Qatar has already taken steps to reduce its carbon footprint and increase its use of renewable energy sources. As such, the country is dedicated to creating green spaces and providing eco-friendly transportation options for visitors. This commitment to sustainability ensures that the tournament will be as environmentally friendly as possible and will leave a lasting legacy in Qatar.
Also, Qatar is a financially secure country. Qatar is the wealthiest country in the world per capita, and its economy is largely supported by oil and gas production. This financial security means that Qatar is able to invest heavily in the tournament and ensure that all the necessary infrastructure is in place. Also, the country is able to pay for all of the necessary labor to ensure the tournament is completed on time and is able to provide financial incentives for visiting teams and fans. Lastly, hosting the 2022 FIFA World Cup will provide Qatar with an opportunity to create thousands of jobs in the hospitality and construction industry. This will help to reduce unemployment in the country and provide a much-needed boost to the economy. All of these factors have contributed to Qatar’s decision to host the 2022 FIFA World Cup.
Conclusion
The 2022 FIFA World Cup in Qatar presents a unique opportunity for the country to improve its economic growth, attract foreign investment and diversify its economy. The event is expected to generate an influx of tourists, create jobs in the hospitality and construction sectors, and bring in significant revenue through the tourism industry. Additionally, the tournament is expected to lead to increased infrastructure investments, which will benefit Qatar in the long term. However, the high cost of the tournament and the lack of sustainability of the economic impact are major concerns. Nevertheless, the 2022 FIFA World Cup in Qatar provides an opportunity for the country to position itself as a major player on the world stage and make a lasting impact on its economy.
References list
Chankuna, D., 2022. Socio-Economic Impacts of FIFA World Cup Qatar 2022: A Study in Chon Buri Sports City Residents.
Kabbani, J. (2022). The 2022 FIFA World Cup: Qatar’s Catalyst to Propel Development and Soft Power | Wilson Center. [online] www.wilsoncenter.org. Available at: https://www.wilsoncenter.org/article/2022-fifa-world-cup-qatars-catalyst-propel-development-and-soft-power
McQuaid, J. (2022). The Economic Impact on Qatar from the Upcoming 2022 World Cup – Michigan Journal of Economics. [online] Available at: https://sites.lsa.umich.edu/mje/2022/05/24/the-economic-impact-on-qatar-from-the-upcoming-2022-world-cup/.
Mohammed, S. and Qoronfleh, M.W. (2022). FIFA 2022: Qatar, The Legacy. [online] Available at: https://www.researchgate.net/publication/361098908_FIFA_2022_Qatar_The_Legacy.
write