Qatar’s economy shows a stronger resilience in Q422 as the country is entering into a historic phase by organising the World Cup for the first time in the Middle East. According to a recent report by FitchSolutions, the Arab State will have a “net positive impact” resulting in a higher boosting on its economy, trade relations and investments while the world turns its focus into the region.
The report said that, “We believe that the tournament will boost growth in Q422 through higher services exports, an uptick in consumption and increased government spending.” The growth in its economy signals a higher possibility for investments and the businesses to soar ensuing a significant boost in the country’s economy.
As the country expects nearly 1.5 million fans during the sporting season, tourists and potential business partners have been captivated by Qatar’s retail and trade markets. The report suggests that this could see a vital inflation in the GDP. “In Q422, the hosting of the tournament will have immediate positive effects on Qatar from the perspectives of real GDP growth and the balance of payments via higher consumption, government spending and services exports,” it said.
The deep-rooted influence for trade and investment relations will be from the visitors during FIFA 2022 World Cup. The report said: “The most prominent impact of the World Cup will come from a surge in foreign visitors. The number of arrivals during the tournament, which authorities estimate at between 1.2m and 1.7m visitors, will represent a substantial portion of our tourism team’s projection of 2.2m visitors in 2022, above the 2.1m in 2019."
"As a result, Qatar (aided by the World Cup) and the UAE (aided by the Dubai Expo and spillovers from the World Cup) will be the only members of the Gulf Cooperation Council (GCC) to see the number of tourist arrivals in 2022 exceed 2019 levels,” it added.
