How FIFA’22 affected Qatar’s Economy

INTRODUCTION

Vamos Argentina!! Argentina and Messi finally win the FIFA World Cup Qatar 2022. Winning the worldcup is not an easy deed, but what about hosting the worldcup? In 2010, Qatar was announced as the host of FIFA World Cup 2022, making it the first arab country to host the world cup. Qatar has never qualified for the world cup till 2022. It is merely a small country with a population of almost 3 million. in 2010, they had no infrastructure to support the FWC in any way. How much did they spend for the world cup? did it have a positive or a negative effect on Qatar's Economy? What will be their condition after the worldcup?

UPGRADATION To show off to the world that Qatar’s no less, and to accommodate almost a million football fans(on top of hosting the world cup), Qatar has build 7 new stadiums, a new metro system in Doha(Capital of Qatar), a new city amidst the desert plain- the Lusail City to house the fans, expansion of their airport, a brand new shipping port, and several thousands of kilometers of developed roads. Numerous training centers, fan zones, and other areas have also been built to enhance the outdoor experience of traveling fans. The Qatar state has spent over $300 billion to upgrade this infrastructure. Qatar has spent around a whopping $220 Million exclusively for the World Cup since 2010, which is almost 15 times more than what Russia spent in 2018.

THE INCREASED WEALTH OF QATAR Qatar’s GDP currently is $179.57 Billion which has rose by 43% since 2010, in which the world cup has contributed the most. More over the FIFA World CUp is expected to contribute over $20 Billion to Qatar’s Economy. The fans will be spending more on food, socialising and venturing than the previous worldcups. There is a 80% increase in Food orders on the match days than the rest. The World Cup gains on the QSE are expected to carry into the next year as well, primarily from construction, real estate, tourism and retail spending that trickles down to the exchange-listed companies and the broader economy as a whole.

The QSE(Qatar’s Stock Exchange) has stomped over its peers in the making of this ega-sporting event. The Country has seen approximately $4 Billion Foreign inflows in the first half of the year. The QSE Index grew upto 24.7% until april 2022, and then stabled at 12.1% by the end of the year. This might not look much but Akber Khan(senior director of asset management at Doha-based Al Rayan Investment), in the last 5 years, when preparations related to the World Cup accelerated in terms of the pace of work, Qatar’s stock market is up more than 50 percent, making it one of the fastest growing economies in recent years. WHAT ABOUT THE PEOPLE OF QATAR? The startups of the region are also showing significant interest in the World Cup. Doha-based tech startup Arvex is offering 360-degree VR tours of the Khalifa International Stadium at Doha. For Qatar, the World Cup is a way to showcase and nurture more industries in the region and move beyond its dependency on oil and gas. Working with startups like Arvex is encouraging more local businesses and entrepreneurs. Besides the hotels, malls and hospitality industry, several mid-cap companies which got government contracts as suppliers of materials like paving stones, building materials, plastic,etc are to be equally benefited too, along with services like security, rental houses, public transport workers and the low-wage workers.

WHAT BEYOND THE WORLD CUP? As the world cup is over, what will Qatar(with its little soccer history) do with 8 Football Stadiums? The Qataris have started dismantling some of their stadiums to build other buildings, and the others will be upgraded to host the Asia Cup 2030. The main reason Qatar spent $300 billion was to show the world that they are more than just the Oil and gas supplier. They expect an increase in tourism, and as an investment destination flooding the country with revenue. Despite their allegation on bribing to host the FWC and strict laws about women and the LGBTQ community, the World Cup has ended without any setbacks, and everyone can go back to their normal lives.