78763492 FIFA World Cup 2022 and its expected impact on Qatar economy
[FIFA World Cup 2022 and its expected impact on Qatar economy]
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”Expect amazing” was the main tag line used Qatar Bid Committee for FIFA 2022 it turned to be a reality when FIFA awarded Qatar the right to host 2022 World cup. To become the first country in the Middle East to host the world cup, the world cup is expected to attract around half a million visitors, which is almost a third of Qatar’s total population. This event in Qatar is expected to have a significant economic impact. (Group, 2011)
Qatar is non-standard case due to absence of independent monetary policy, limited domestic production base, and the fact that it is an extremely rich country on per capita basis. Its inflation rate has fallen drastically from 15% in 2006-2008, to -5% in 2009, this is expected to fall further in 2010. This happened because of increased residential units and the drop of international commodity prices, thanks to the financial crisis, the current deflation environment offers the government ideal environment for spending since it is hard to push inflation to above 10%, experienced in global financial crisis years.
Qatar plans to build, a modern public transportation system, a mega size airport, residential housing units, roads, hotels, sophisticated air-conditioned stadiums and many more. This is estimated to cost $100 billion, being 87% of GDP on infrastructures project, which is part of the country’s vision 2030 to modernize the country. This event has already accelerated the country spending program on infrastructure is expected to be completed by 2022. (Menon, 2012)
As the part of the plan, Qatar government will spend more than $40 billion, on various projects concerned with this event while the remaining $60 will be from government entities such as Qatar petroleum. The plan includes a number of profile mega projects, largely in education, health, tourism, and housing sectors. In the plan, $25 billion will be used in rail and
Name:
University:
Instructor
.
”Expect amazing” was the main tag line used Qatar Bid Committee for FIFA 2022 it turned to be a reality when FIFA awarded Qatar the right to host 2022 World cup. To become the first country in the Middle East to host the world cup, the world cup is expected to attract around half a million visitors, which is almost a third of Qatar’s total population. This event in Qatar is expected to have a significant economic impact. (Group, 2011)
Qatar is non-standard case due to absence of independent monetary policy, limited domestic production base, and the fact that it is an extremely rich country on per capita basis. Its inflation rate has fallen drastically from 15% in 2006-2008, to -5% in 2009, this is expected to fall further in 2010. This happened because of increased residential units and the drop of international commodity prices, thanks to the financial crisis, the current deflation environment offers the government ideal environment for spending since it is hard to push inflation to above 10%, experienced in global financial crisis years.
Qatar plans to build, a modern public transportation system, a mega size airport, residential housing units, roads, hotels, sophisticated air-conditioned stadiums and many more. This is estimated to cost $100 billion, being 87% of GDP on infrastructures project, which is part of the country’s vision 2030 to modernize the country. This event has already accelerated the country spending program on infrastructure is expected to be completed by 2022. (Menon, 2012)
As the part of the plan, Qatar government will spend more than $40 billion, on various projects concerned with this event while the remaining $60 will be from government entities such as Qatar petroleum. The plan includes a number of profile mega projects, largely in education, health, tourism, and housing sectors. In the plan, $25 billion will be used in rail and
References: Basher, S. (2010, december 24). The economics of the 2022 FIFA World Cup. Retrieved May 23, 2012, from Vox: http://www.voxeu.org/index.php?q=node/5973 Group, O. B. (2011). Qatar, 2011. Oxford: Oxford Business Group. Menon, M. (2012, march 12). FIFA World Cup 2022 and its impact on Qatar economy. Retrieved may 23, 2012, from Morison Menon News: http://www.morisonmenon.com/fifa-world-cup-2022.php