H E Ali bin Ahmed Al Kuwari (fourth left), Minister of Commerce and Industry; Sheikh Mohammad bin Hamad bin Jassim Al Thani (second right), Chairman and Managing Director of Barwa Bank Group; Qatar Chamber Chairman Sheikh Khalifa bin Jassim Al Thani (thir
The 6th Doha Islamic Finance Conference, organised by Bait Al-Mashura Finance Consultations, highlighted the opportunities and challenges of investments in Qatar’s emerging sport industry.
Kick-starting the debate, while addressing the opening session, Jassem bin Rashid Al Buainain, General Secretary of Qatar Olympic Committee pointed out there is huge potential for investments in the sport industry in Qatar. Unfortunately, enough investments are not happening in this domain. He said there is enough scope for attracting foreign direct investment to this emerging sector.
Participating in a panel discussion, exclusively dedicated to “Islamic finance and modern trends towards the sports sector”, Khalid Al Mana, Executive Director of Business Finance at Qatar Development Bank (QDB), highlighted the programmes offered by the Qatar Sports Tech (QST) in contributing to Qatar’s diversification goals.
The QST, which aims to transform Doha into one of the leading sportstech hubs in the world, was initiated by the QDB, powered by global startup accelerator Startup bootcamp, and supported by the Supreme Committee for Delivery & Legacy, Qatar Financial Centre, Aspire Zone Foundation, BeIN Sports, and the Ministry of Commerce and Industry.
The programme invests in sportstech startup companies, and has been attracting leading talents and innovators in the field globally, he said.
“Qatar has become a sports hub, with plenty of facilities and training stadiums. We also have plenty of sports institutions participating in the country’s sports boom. For the upcoming Fifa World Cup 2022, our focus is on tapping into financial technologies for the fanzone, and help the fans achieve a more interactive experience. Another focus area is analysing the performance of the athletes and the teams”, Al Mana said.
Speaking about Qatar’s investments in the global sports scene, Dr Mahfoud Amara, Director of Sport Science Programme at Qatar University, said Qatar is becoming a hub in attracting expertise into sports.
“There’s a significant rise of entertainment industry including sport channels. And the region is now becoming a new destination for transnational athletes and coaches. Qatar is becoming a hub when it comes to attracting expertise to sports. While the country is investing in elite sports, it is also investing to maintain its tradition of authentic sport culture such as camel racing, falconry, and sports riding. Qatar’s brand is reconciling global trends with local tradition,” he added.
Amara added that some of Qatar’s investments in sports include sponsorship of sports events wherein Qatari companies like Qatar Airways, Qatar National Bank, and Ooredoo are known for their sports investments to promote their brands locally and internationally, direct investments in international sports clubs and assets such as the takeover of PSG and the London 2012 Olympic Village, sport tv broadcasting (BeINSport), and sport manufacturing (Burdda). Qatari investments in international football include a €36m share and €70m investment in Malaga FC and the Qatar Sport Investment’s €140m investment in PSG Paris.
To date, the value of Mena sports and events industries stand at $15.8bn and $8.7bn respectively. Amara added: “Globally, sports is a growing but increasingly more vulnerable industry which also struggles with cases of corruption, doping, discrimination, violence, monopoly, and inequality. Investing in sports also comes with a responsibility to push for values of good governance. Particularly for the World Cup, we have some top sponsors of Fifa known for their alcohol brands. There are challenges to reconcile between local cultural norms and meeting stakeholders interests. Investing in sports exposes the nation to scrutiny. But this scrutiny can help in terms of pushing for more reforms”.
Dr Khalid Shuga, faculty member at the Kuwait University, who spoke on the topic ‘Shariah Controls and Standards for Investment in Sports Sector’, reiterated the need to rationalise investments towards moderation. He added that investments should neither be excessive nor stingy.
A document on “Investment in Sports sector”, authored by Dr Mahfoud Amara released on the occasion noted that Qatar, since the 2006 Asian games held in Doha, has been considered as a milestone for its international sports strategy and is investing in sport using both direct and indirect investment. The strategy is to establish an international network and alliances and bring more international visibility to local companies/ sectors involved in the economic diversification of Qatar, associated with the development of retail, tourism and hospitality and other service economy based on banking, education and technology.
Sport is becoming a multifaceted industry that mobilises a number of sectors such as turism, hospitality, retail, media, manufacturing and construction, to name but a few. It offers a number of opportunities in terms of jobs, diversifying state’s revenues and investment locally and internationally. Investment in sports offers an opening to an international exposure needed for a country’s branding, as a tourist destination, or simply a place to be to make business.
