
Saudi Arabia has been officially designated as the host for the 2034 World Cup, marking a return of the prestigious tournament to the Gulf region for a second time in just a decade—a move that has already ignited significant controversy.
For Crown Prince Mohammed bin Salman (MBS), this could signify a considerable victory in his strategy to utilize sports as a tool for attracting tourists, expanding global influence, and transforming the country’s image.
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“This is a landmark achievement for MBS and the Saudi state. It is arguably the highest point of their sports strategy thus far,” said Stanis Elsborg, director of Play the Game, a Denmark-based organization committed to ethical standards in sports. “However, for MBS, hosting this tournament is merely a component of a broader vision.”
Saudi Arabia is currently engaged in an eight-year, multi-trillion-dollar initiative aimed at decreasing its economy’s reliance on oil revenue. This plan involves developing various new industries, modernizing society, and opening the country to tourism.
The kingdom has invested heavily in sports as part of this vision, both at home and abroad, hoping that events like the World Cup will energize its young population.
Nevertheless, the Saudi bid to host the 2034 World Cup has faced controversy since its inception.
‘Darker side’
Advocacy groups, including Amnesty International, have raised concerns regarding the use of exploited labor, while several U.S. senators have urged the rejection of the bid due to Saudi Arabia’s troubling human rights record.
U.S. intelligence agencies have linked the 2018 murder of Washington Post journalist Jamal Khashoggi to MBS, a former ally who became a critic within the royal court.
According to Elsborg, the kingdom views the World Cup as a means to divert attention from these serious issues.
“We must not ignore the grim reality: this isn’t solely about a passion for sports,” he asserted. “It’s about leveraging sports to distract from their appalling human rights record and to secure global legitimacy.”
The Saudi government has not responded to a request for comment.
‘Sportswashing’
Qatar, which hosted the first World Cup in the Middle East in 2022, faced similar accusations of engaging in sportswashing to mask its human rights concerns. Despite this, the event was deemed a sporting success, improving the small nation’s reputation internationally.
Saudi Arabia aims to achieve even greater advantages.
MBS has cultivated a relationship with FIFA President Gianni Infantino, who has consistently championed the nation as a viable World Cup host. Additionally, the Saudi oil giant Aramco has emerged as a major sponsor of FIFA events.
Consequently, Saudi Arabia was essentially the only bidder for the 2034 World Cup after Australia withdrew, ensuring its selection was almost guaranteed before FIFA’s official decision on Wednesday.
World Cup stadiums
The specific dates for the 2034 World Cup have yet to be confirmed, according to Saudi Arabia’s sports minister. Matches are expected to occur across 15 stadiums in five Saudi cities, including Riyadh and Jeddah, with eleven of these being completely new constructions.
The construction and associated spending requirements could increase pressure on an economy already facing years of budget deficits, partly due to ongoing investments.
Saudi Arabia projects a fiscal deficit of around 2.8% of GDP this year and for every year until 2027.
The kingdom has not indicated when it anticipates returning to a surplus and has acknowledged that operating deficits are a necessary compromise for investing in growth beyond the oil sector.
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“A planned deficit of 2% to 3% in a stable region is beneficial for investing in vital economic sectors,” stated Faisal Al-Ibrahim, the economy and planning minister, last month.
The kingdom has increasingly relied on issuing sovereign debt to cover the shortfall and plans to continue borrowing in 2025. According to Moody’s, this increase in borrowing may push Saudi Arabia’s debt-to-GDP ratio to 35% by 2030, still well below that of many other nations.
“They have more than enough capacity to finance this,” remarked Justin Alexander, director of Khalij Economics and an analyst for GlobalSource Partners. “While they may occasionally need to borrow more or limit spending in other areas to maintain this, it is undoubtedly a priority.”
Construction concerns
Construction related to the World Cup will contribute to the $1.3 trillion in real estate and infrastructure projects that have been announced across the country since 2016.
At the same time, Saudi Arabia is preparing for two major sports championships within the next five years, along with the World Expo in 2030.
Migrant workers, who form the backbone of Saudi Arabia’s construction surge, often face widespread labor abuses, leading Human Rights Watch to assert that it is “almost certain” that rights violations will mar the 2034 event.
The rush to complete stadiums in Qatar before the 2022 event resulted in compromised safety and the deaths of hundreds of migrant workers, as reported by media outlets and confirmed by government officials. Concerns that plagued the selection of the small yet gas-rich nation will likely resurface in Saudi Arabia.
The Qatar World Cup faced backlash from some club owners who argued that the switch to winter tournaments disrupted domestic leagues. The host country’s stance on homosexuality was also scrutinized, with human rights and LGBT advocates noting that the World Cup might not be welcoming for all fans. Furthermore, alcohol consumption was banned in stadiums.
Trophy moment
The tournament culminated in Argentina’s victory over France in a penalty shootout, a match hailed by analysts as one of the greatest World Cup finals ever, cementing Lionel Messi’s legacy as the premier clutch player of his generation.
The iconic image of Messi proudly holding the Jules Rimet trophy, draped in a traditional black Arab bisht cloak gifted by Qatar’s ruler Sheikh Tamim bin Hamad Al Thani moments earlier, became viral, enhancing the nation’s image and soft power.
Following the World Cup, Qatar witnessed a 58% surge in tourism year on year in 2023 and is anticipated to achieve record numbers in 2024.
Prince Mohammed of Saudi Arabia may very well be envisioning a similar result.
The kingdom aims to attract 150 million tourists annually by 2030, with 70 million visitors from abroad. The government has declared its intention to invest nearly $1 trillion in the tourism sector over the next decade to elevate its status as one of the world’s most visited destinations.
“Winning this bid sends a strong message: Saudi Arabia is ready to not only take its place on the global stage but is also committed to reshaping the tourism narrative of the region,” remarked Anita Mendiratta, special advisor to the UN Tourism secretary-general.
Hosting the World Cup could potentially draw millions of new visitors and create new revenue opportunities, supporting the wider diversification goals of the country.
© 2024 Bloomberg L.P.
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