DUBAI, UAE — As the world gears up for the FIFA World Cup 2022 that will be held in Qatar from November 20 until December 18, the positive ripple effect is being felt across the entire region, especially in the UAE.
From the spurring regional cooperation to a much-needed boost for businesses navigating a challenging year due to recessionary pressures, continuing supply chain disruptions, and geopolitical pressures, the mega sporting event is set to benefit almost every sector of the economy.
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Tourism, hospitality, F&B, retail, real estate and entertainment are among the sectors that have received maximum fillip. Qatar, according to the Al Rayan Investment estimates, have spent $350 billion on infrastructure development as preparation to host FIFA World Cup 2022.
Besides raising Qatar’s profile globally and reopening borders with many neighboring countries with the FIFA World Cup set to record over one million visitors, UAE-based businesses, particularly in Dubai, are expected to be a major beneficiary.
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A Standard & Poor’s (S&P) report stated, “Dubai’s hotel capacity is more than 3x higher than that of Qatar and we expect football fans to take full advantage, supported by daily shuttle flights between Dubai and Doha, less than an hour away. The absence of any pandemic-related restrictions, including no requirement for PCR tests (from most destinations), further simplifies travelling to and from Dubai.”
Optimism is in the air
The FIFA World Cup 2022 has created an air of optimism for industries and businesses that stand to benefit from the tourist influx.
Though the actual sporting event is being held in Qatar, it’s going to be a World Cup for the entire Middle East, said Gates Hospitality Chief Executive & Founder Naim Maadad. The company operates F&B venues, including Reform Social & Grill and Publique, among others.
“Usually, the fourth quarter is a busy time for hospitality in any case. However, this year promises to be busier than ever. The Dubai Sports Council estimates that one million football fans will base themselves in Dubai during the event. We expect to welcome lots of guests who have flown in specifically for this football festival.”
“The fourth quarter of every year typically sees a strong influx of tourists to Dubai and the region, thanks to some iconic events organized in the country,” said Lizelle Fitoussi, Marketing Director at Merex Investment Group, the creator of destinations such as The Beach, City Walk and La Mer with over 550 retail, leisure and entertainment options.
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“When Dubai hosted Expo 2020 last year, we witnessed a spike in tourist footfall across all our destinations. This year, we expect the same with the World Cup in Qatar, and our destinations are more than ready to welcome visitors,” she added.
From the neighborhood community-led hangouts to licensed venues setting up massive screens for football enthusiasts to watch the games with dedicated family and fan zones such as Stadium Lounge, the 28 days of the FIFA World Cup is expected to be nothing short of a festival.
A ‘golden’ opportunity
Fitoussi called the FIFA World Cup 2022 a “golden opportunity”.
“With billions expected to tune-in and millions anticipated to fly-in for the FIFA World Cup Qatar 2022 in the coming weeks this is the perfect opportunity for the region to showcase its world-class destinations and unique offerings for the tourists,” she said.
Dubai is known for its first-rate infrastructure, services, and options, coupled with an innovative outlook and a welcoming approach to tourists like other Gulf countries, including Qatar.
In addition, over the years the UAE has taken aggressive steps to diversify its economy away from oil, and the tourism sector has long been one of the key economic drivers. “If anything, the World Cup will further boost tourist numbers,” she added.
Amid projections of a protracted recession, the FIFA World Cup Qatar perhaps comes at the right time to create an accelerated growth.
“The rich and varied hospitality scene in the region is always going to be beneficial. While the World Cup will only last for four weeks, it’s important that we use the opportunity to constantly evolve our offerings to meet the demands of new tourists coming to the city, all-year round and develop long-term strategies that will cater for the demand that Dubai continues to bring,” Maadad said.
Tourist spillover to benefit SMEs
Besides hotels, malls and luxury retail, home-grown businesses are also set to benefit from the tourist spill-over.
The UAE-born camel milk chocolate brand Al Nassma, for example, is “well prepared” and “stocked up” to handle a considerable rise in demand.
“I wouldn’t be surprised if we see an increase of some 20 percent compared to the record figures of 2019. Especially the first two weeks of the event will certainly see some strong demand,” said Martin van Almsick, General Manager, Al Nassma Chocolate LLC.
“Expo 2020 Dubai already proved that our brand benefits from increased visitor numbers to the region. We bring to the table the authenticity and innovative strength that travellers rightfully expect when coming to our part of the world. People look for new tastes and unique gifting options from the region to take home to their loved ones. Al Nassma chocolates provide just that.”
According to Almsick, the holiday season coming up in the middle of December will add to the momentum.
A perfect sweet spot
Interestingly, it’s the first time that FIFA World Cup Qatar is set to coincide with the on-going Black / White / Yellow Friday sale period in the Middle East.
According to a report by consulting firm Redseer, the upcoming global football tournament is expected to boost the festive retail season with a predicted peak gross merchandise value of $8.4 billion for online retail compared to $6.5 billion in 2021. Including offline sales, the overlap of the football season with Black Friday presents a massive $70 billion opportunity for the MENA retail sector.
The report also stated that the football tournament will bring a $4 billion opportunity through tourist spend, with 51 percent being attributed to accommodation.
A thin line between opportunity and misuse
While the opportunities are real and being acknowledged widely by businesses, the FIFA World Cup Qatar website has an interesting clause on ambush marketing which states “ambush marketing puts FIFA’s commercial programme directly at risk by effectively devaluing official sponsorship.”
It makes one think if and how businesses might be misusing an opportunity of a mega scale such as the upcoming FIFA World Cup in Qatar by engaging in what might be considered ambush marketing.
Ambush marketing is a “delicate” topic, said a veteran business owner who chose to remain anonymous. This phenomenon is not limited to the UAE but “sadly” happens globally “quite like flexing your muscles at someone else’s expense.”
While such activities are damaging for the reputation of the entire business community and “upsetting the market,” they tend to be short-lived, lacking any real strategy causing success, if any, to be “limited” and “unsustainable”.
Another business owner, also choosing to be anonymous, said, “We are certainly not planning on engaging in this type of activity. As for other businesses in the region I haven’t seen any cases of meaningful ambush marketing.”