Al-Amn Magazine

SPORT T he world stage has a new sports fan: the GCC. As part of their strategies to achieve economic diversification, Middle Eastern countries have increased their investments in the sports sector, benefitting from the internationalisation of major sports leagues and the substantial rise in media rights and broadcasting revenues. Nations including Saudi Arabia, Qatar and the UAE have also increasingly directed funds towards building up strong domestic competitions and global fanbases. The numbers support this narrative. The Dubai Sports Council announced in January 2024 that the sports sector contributes more than $2.5 billion to the Dubai economy and is responsible for over 105,000 jobs in the emirate alone. A key aspect of this is sports tourism. The sector is already a $600 billion industry in the Middle East and it is set to grow by 8.7% by 2026. This is a stark contrast to the global industry, which is forecast to slow to 3.3% growth over the same period. “Sports offer strategic value beyond just financial returns,” Maximilian Klante, Managing Director and Partner at Boston Consulting Group (BCG), explained. “For GCC nations, investing in sports can drive tourism, enhance cultural influence and promote healthier lifestyles among their populations.” Jamie Ryder, Partner, Entertainment and Media Industry Group, Reed Smith, agreed. “Depending on the type of sport and type of investment, sport can contribute to tourism, lead to the establishment or regeneration of areas and communities, create jobs, enhance infrastructure, increase recognition and exposure and contribute positively to society by improving quality of life,” he added. Football in focus When it comes to GCC sports investment, football is the first to come to mind. “Football is truly global, and the FIFA World Cup is the biggest single sporting event on the planet, so investing in the game is a way to reach all new audiences,” Romy Gai, FIFA’s Chief Business Officer, explained. The main example is the 2022 Qatar FIFA World Cup. The International Monetary Fund (IMF) estimated the country spent up to an estimated $243 billion to host the competition, with $6.5 billion dedicated to stadium costs alone. It paid off. The Qatar World Cup resulted in a 365% annual increase in foreign visitors, driving a 276% daily rise in hotel bookings. Overall, the World Cup is said to have contributed between $2.3 billion and $4.1 billion to Qatar’s GDP. “The FIFA World Cup Qatar 2022 served as a catalyst for regional economic growth and sports industry development across the country and the region,” Gai added. “It accelerated infrastructure projects, including new stadiums, transportation systems and hospitality facilities, while the tournament itself–truly a historic one–showcased the region’s ability to host large-scale global events and welcome the world to its shores.” The event was not only a success for Qatar but also for the wider GCC. The most obvious indicator of its value addition is the region’s eagerness to replicate it. Saudi Arabia is currently seeking to host the 2034 World Cup, being the only bidder to have applied by the deadline. The Kingdom has already unveiled the stadiums set to host the matches, including a stadium built on NEOM’s The Line vertical megacity and described as the “most unique stadium in the world” Bet t i ng on sport s Why GCC count ri es are i ncreas i ng l y i nves t i ng i n t he sector