Key Takeaways:
- Saudi Arabia’s sports investments, criticized as sportswashing to distract from human rights issues, are a key component of its Vision 2030 reform strategy to diversify the economy and enhance global standing.
- Modeled on Qatar’s 2022 World Cup, Saudi Arabia’s 2034 tournament plans focus on massive infrastructure development, boosting tourism, and fostering regional pride.
- Hosting the 2034 World Cup has the potential to drive significant economic growth, enhance non-oil GDP, and position Saudi Arabia as a global hub for premier sporting and cultural events.
Saudi Arabia will host the 2034 World Cup, an initiative that represents the country’s efforts to become a global player in sports and entertainment. In addition to the World Cup, the kingdom will host the 2029 Asian Winter Games, 2030 World Expo, and 2034 Asian Games. The Saudi government has actively worked to welcome and encourage foreign talent, tourism, and investment as part of its Vision 2030 socio-economic reform program intended to diversify the economy. The 2034 World Cup will provide the government with a global platform to strengthen such nascent connections and showcase the sweeping changes in the kingdom since Mohammed bin Salman (MBS) became the Crown Prince in 2016. The event’s vast audience and diverse attendees will offer significant opportunities and bring cultural challenges and risks. However, as the 2022 World Cup in Qatar demonstrated, the likely net gains far outweigh the potential drawbacks. One of the most immediate benefits to Saudi Arabia will be economic, with the country having to invest heavily in infrastructure in the coming years.
Sports Investments as a Pillar of Saudi Arabia’s Vision 2030
In recent years, the Kingdom of Saudi Arabia’s significant financial investments in sports have led to accusations of sportswashing—the attempt to improve its international image through sports. Human rights advocates have long suggested that the Saudi government is using sports to detract attention from long-standing reputational issues. For Saudi Arabia, this likely refers to a combination of human rights issues, such as the mistreatment of women, migrant workers, and members of the LGBTQ community.
The issue regarding the treatment of migrant workers and the status of LGBTQ fans overshadowed the 2022 World Cup in Qatar. However, Saudi authorities have dismissed such concerns, claiming it will not be an issue for the 2034 tournament. While such criticism may be valid, it fails to comprehend that the kingdom’s significant financial outlay on sports, estimated to be approximately USD 6 billion between 2020 and 2023, is part of the government’s commitment to a long-term socio-economic reform program known as Vision 2030. MBS has said he “doesn’t care” about accusations of sportswashing against his country and that investment in sports helped to increase the country’s gross domestic product (GDP) by one percent. Such statements reinforce the sense that sports are key to the Vision 2030 strategy.
Lessons from Qatar’s 2022 World Cup
Saudi Arabia will likely model its strategy based on what Qatar did in 2022. Qatar used the 2022 World Cup as an anchor for its broader development strategy, linking the significant infrastructure development required for the tournament to broader national goals to modernize and diversify the economy. The total cost of hosting the tournament in Qatar is estimated between USD 200- 300 billion. Only a relatively small amount—approximately USD 7-10 billion—went toward constructing new stadiums. Most of the cost went towards improving and creating transportation infrastructure and increasing hotel capacity.
Saudi Arabia will almost certainly follow the Qatari development model in preparation for the 2034 tournament. Moreover, the success of Arab football teams on the pitch generated an upsurge in regional pan-Arab pride and positive adulation from the Arab world. Saudi Arabia will hope further success on and off the pitch in 2034 will generate similar positive sentiments. An upsurge in positivity in 2022 helped offset the negative media coverage in the lead-up to Qatar hosting the World Cup.
Economic Impact of Saudi Arabia’s 2034 World Cup
Should the development expenditures of hosting the World Cup cost around USD 250 billion—the midpoint of Qatar’s estimated expenditure—the tournament could raise Saudi Arabia’s real non-oil GDP growth by an estimated 1.25 percent annually over the next decade. While this growth impact may appear nominal compared to Qatar, it only reflects the much larger size of Saudi Arabia’s nonhydrocarbon economy. By 2034, the economic impact on Saudi Arabia is expected to be more pronounced, particularly vis-à-vis Qatar, as the influx of visitors will likely boost spending.
The 2034 World Cup undoubtedly represents the most significant development project the kingdom will likely undertake. While Saudi Arabia will be scrutinized in the coming years, the potential socio-economic gains that the tournament will provide far outweigh any government concerns. A successful 2034 World Cup will grow the reputation and global familiarity of the Gulf region—not just Saudi Arabia—as a hub for top-tier, high-profile sporting and cultural events.
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