2022 FIFA and Qatar's Investments

Scheduled to take place from November 20th to December 18th, the prestigious FIFA World Cup is back in Qatar next month. This year, as it has been since 1998, the best 32 national teams that are selected during the qualifications will be competing for the championship. Fans from around the world are already showing their excitement through social media while waiting for the beginning of the largest international soccer tournament that takes place only every four years.

As the hosting country, Qatar is the very first Middle Eastern country ever to host a World Cup in history. The government initially announced that the tournament is expected to bring about 1.2 million foreign visitors, almost half of the current population of the country, and that the infrastructure will be updated as needed, with an estimated budget of $200 million, almost 20 times the cost of the previous tournament that was held in Russia. As a result, there have been a lot of speculations on whether being the host country will benefit Qatar’s economy or not considering how such events are known for their impact on the local economy.

Initially, it was estimated that hosting such a global event would bring about $20 billion to Qatar’s economy; however, the number was revised to about $17 billion recently. Such profit promise was also perhaps the reason behind the government’s willingness to upgrade the current infrastructure. The government hopes to increase foreign investment in the country and attract even more visitors from the international community by investing in advancing the state. Tourism by itself is expected to contribute $240 billion to the economy by 2025. The government has built seven new venues, powered by a solar-panel farm, a new metro, highways, highways, and hotels while renovating one venue and Hamad International Airport. Besides the financial contributions, the government expects that the preparation will create more than 1.5 million new jobs in construction, housing, and hospitality.

While the World Cup could benefit the economy in the short run by causing an increase in tourism and foreign investment, the potential benefits, in the long run, are quite uncertain. Analysts indicate that Qatar may not be able to keep inflation away as demand will increase within the country as a result of an increase in the flow of foreign exchange and demand.

Additionally, given that Qatar is the first Middle Eastern country to host the World Cup, the tournament is a chance for Qatar to present its culture and traditions, besides the possible economic returns.

It is also worthwhile to mention the accusations made to Qatar by Amnesty International for employing migrant workers who were forced to work under poor conditions with very low compensation while, in a 2021 article, the Guardian revealed that more than 6,500 workers died since 2010, which is when it was announced that 2022 FIFA would be held in Qatar.

All eyes are now on Qatar as the long-awaited World Cup kicks off next month.