Effect of the FIFA World Cup on Qatar’s Economy- Before one can appreciate the reasons behind Qatar’s bid to host the FIFA World Cup event, one must first have a working knowledge of the country’s economy. In 2010, Qatar became victorious in the competition to host the FIFA World Cup in 2022. The goal of the plan is not only to win the right to host a major international football tournament, but also to teach people in the west about Qatar’s financial system. Qatar, in contrast to the other Middle Eastern countries of the world, has always been open to new prospects, whether it be investing in global enterprises or hosting athletic events.
Qatar’s Economy
Qatar’s economy entered the mainstream for the first time in 1973, when oil production and income went up. Despite the fact that oil exploration didn’t begin until 1939, it was not until much later that the industry began to generate a profit. During that time period, Qatar’s primary focus was on its oil reserves and the improvisations that could be made to them. The previous Emir of Qatar was constantly mindful of the fact that “Oil is not going to be there forever and they will have to establish other industries for a continuing economy.”
However, Qatar is in possession of an enormous number of natural gas reserves. These deposits make up a sizeable portion of the country’s primary economy and will continue to be the primary driver of economic expansion in Qatar.
The SCQ made the discovery of proved quantities of natural gas amounting to 4.6 trillion cubic meters (1601012 cu ft) in the year 1972. It is expected that the gas will be utilized for some time into the twenty-first century.
Between the years of 1982 and 1989, the economy of Qatar was on a descending trend. The Organization of the Petroleum Exporting Countries (OPEC) imposed production limits on crude oil, which led to a decline in the price of oil, which in turn led to a generally gloomy outlook on international markets. All of these factors contributed to a reduction in earnings from oil. As a direct consequence of this, the government of Qatar was compelled to scale down its expenditure plans in order to compensate for the reduction in revenue. As a direct consequence of the deteriorating state of the regional economy that this brought about, a number of firms were compelled to let go of their expatriate personnel. It was at this time that the “Thani family” realized how important it was to separate their eggs into several distinct baskets.
Following that, Qatar maintained its focus on gas reserves and exploration; the business Qatargas had already been established in 1984 for the succeeding stages and improvisations of the project. To proceed with this course of action was the most beneficial choice for the country as a whole. The Qatargas project began exporting liquefied natural gas (LNG) to Japan in 1996. At the time, Japan was the only destination for these shipments. There are a variety of stages that are now being reached in the planning and preparation processes for further phases of the North Field gas development project. Each of these phases will cost billions of dollars. As the economy began to develop in the 1990s, a following increase in the number of individuals from other countries, namely Egypt, Pakistan, India, and Bangladesh, began to immigrate to the United States.
The following industries are the most important contributors to Qatar’s economy:
- Access to Power and Resources
- Fishing and agricultural practices
- Commerce and Industrial Production
- Financial Sector
- Various services
Effect of FIFA world cup on Qatar’s Economy
Most of you must be thinking, if Qatar is so rich in resources, why does it need FIFA world cup for more enhancement. Well Qatar is always upfront in grabbing opportunities from all over the world. Also because its shaky relationship with other middle eastern countries like Saudi Arabia and Bahrain, it is looking to make allies on western world . Prior to 2018, Qatar was totally dependent on UAE and Saudi Arabia for its dairy consumption. After the sanction in 2017, Qatar understood the importance of putting eggs in different baskets. Nothing could have been better than FIFA world cup event, to make the western world familiar with Qatar and its intentions of globalisation. As per the reports in last decade, world has started seeing Qatar with different eyes.
