QATAR: Diversifying An Economy With Soccer

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Qatar skyline

Author: Nuha Khan

As the world slowly shifts towards adopting renewable energy sources, the Gulf states have prepared strategies to diversify their economies and decrease reliance on revenue from fossil fuels. As part of the Qatar National Vision 2030, the country seeks to reduce reliance on oil and natural gas by promoting economic growth and social development. In particular, Qatar has leveraged sports, specifically football, to expand its infrastructure and promote various growing sectors of its economy such as tourism. 

In 2011, Qatar Sports Investments (QSI), a subsidiary of the sovereign wealth fund the Qatar Investment Authority (QIA), bought Paris Saint-Germain Football Club (PSG), starting a trend of their record-high spending in European football. As of January 2023, PSG have spent over €1.1 billion, or $1.19 billion, on player transfer fees since the Qatari takeover. Most prominently, in 2017, the club bought Brazilian football forward Neymar for an astonishing €222.00m, or $236 million, from FC Barcelona — the highest transfer fee in football history. At the time, Neymar was regarded as one of the top three soccer players in the world, viewed by many as the natural successor to Messi and Ronaldo. His arrival to PSG brought new attention, investment, and excitement around Ligue 1, France’s top football division. Sponsorship deals with Qatar Tourism Authority and Qatar Airways not only maintained PSG’s financial prowess in European football but also worked to expand Qatar’s tourism industry, a major avenue for the country’s economic diversification efforts. 

In 2022, Qatar would go on to host the FIFA World Cup, the most popular global sporting event. Having spent over $220 billion dollars to prepare for the tournament, Qatar was not seeking major profit from the World Cup itself, from which it earned $1.56 billion (separate from FIFA’s revenue), but the attention it would bring to the small Gulf state. With billions of fans having watched the World Cup, Qatar, a country of only 11,610 km², was highlighted on the map. New infrastructure projects and services used for the World Cup such as a high-tech metro system, a sustainable smart city, and visa-free entry through Hayya, are being used to illustrate Qatar’s capacity to host and impress tourists.

Along with large scale events, Qatar has also leveraged high-profile sports celebrities to further their tourism and hospitality ambitions. Shortly before the 2022 World Cup, Qatar signed a 10-year deal worth $159 million with former England captain David Beckham to not only promote the tournament but also tourism and the brand image of the country. 

Qatar welcomed over 1.18 million international visitors during the 2022 World Cup and in 2023, received 3 million tourists, up from 2.14 million in 2019. The country aims to attract 6 million tourists annually by 2030. In 2024 alone, Qatar will be hosting the AFC Asian Cup, World Aquatics Championships, Expo 2023, and numerous other events attracting mass international audiences. 

While they remain one of the richest countries due to oil and gas sales, Qatar has invested heavily in establishing economic-diversification methods. Most interestingly, the small Arab state has managed to utilize sports and all that surround it to facilitate modernization, economic growth, and social development.