Saudi Arabia’s hosting of the 2034 FIFA World Cup will serve as a catalyst for significant job creation and infrastructure development.
Significant Boost To GDP Predicted
Experts predict that Kingdom could expect a GDP boost of between SAR 33.75 billion (USD 9 billion) and SAR 52.5 billion (USD 14 billion). These figures are based on previous events, the Kingdom’s geographical location and it’s rapidly growing tourism infrastructure. Further benefits include the creation of 1.5 million new jobs and the construction of 230,000 hotel rooms. These would be developed across five host cities to accommodate visiting fans and dignitaries. Additionally the event demands a significant commitment to quickly building state-of-the-art facilities including stadiums and roads, as well as training facilities, transportation networks and tourist attractions.
Moreover, the event is expected toattract FDI, diversify income sources and boost tourism, aligning with Saudi Arabia’s Vision 2030 objectives. Importantly, the World Cup will provide a unique platform to showcase investment opportunities that currently exist in Saudi Arabia. Furthermore, hosting the World Cup offers both direct and indirect benefits, with economists estimating short-term gains from visitor spending and broadcasting rights to be about 1% of global GDP. Indirect benefits are expected before and after the tournament through higher FDI and tourism driven by improved vistors experiences
Benefits To Kingdom Expected To Continue Post Event
Economists also highlighted the emerging evidence of increased FDI into the host nation following World Cup hosting. Notably, FDI has significantly increased in well-governed countries, indicating that governance quality is a significant moderating element for investors. Moreover, the multiplier effect of these investments could boost other income sources, emphasising that Saudi Arabia’s current non-hydrocarbon income of SAR 1.7 trillion (USD 453 billion) could significantly rise over the next decade in preparation for the event
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