RIYADH: Saudi Arabia’s hosting of the FIFA World Cup 2034 will have a positive effect on the economy and stock market, according to a report by SNB Capital. The event is expected to raise the nation’s non-oil GDP by 4-5% in the medium term, supporting Vision 2030’s goals of diversifying the economy by reducing dependency on the oil sector.
The SNB Capital forecasts Saudi Arabia’s stock market will outshine the other emerging markets after careful considerations to South Africa, Russia and Qatar’s hosting of the event in past years. Better market reforms, valuation growth and resilience against global economic challenges will possibly be the positive outcome of hosting the World Cup 2034.
In the short term (1-4 years), construction related sectors such as steel, cables and cement will benefit from heavy infrastructure investments in stadiums, transportation and urban development. Medium term gains (4-8 years) would be a result of project completion, whereas long-term benefits will be based on tourism, hospitality and retail industries.
The World Cup will create significant opportunities such as a GDP boost of $ 9-14 billion, 1.5 million new jobs, and 230,000 hostel rooms in around five cities. The approximate cost for hosting will be $ 26 billion, which is comparatively low, as most of the infrastructure has already been planned under Vision 2030.
FIFA’s assessment predicts revenues more than expected through ticket sales, hospitality and licensing, increasing baseline projections by 32%. The event will also boost broadcasting and event management industries, further enhancing economic growth.
Overall, hosting the World Cup will give Saudi Arabia a high-class infrastructure, promoting long-term growth in tourism and other sectors while lessening unemployment and boosting disposable growth. The event will set Saudi Arabia as a key player on a global stage.
