An Economic Analysis of Qatar's Decision to Host the FIFA World Cup 2022

Abstract

A high-ranking policymaker in Qatar who sought expert advice approached Ahmed, an economic consultant to explore the multifaceted impacts of having hosted the FIFA World Cup 2022. In evaluating the economic impact of hosting the FIFA World Cup 2022, several critical questions emerge. Firstly, the anticipated boost in tourism and its implications for the economy is a key area of interest, specifically how it demonstrates Qatar's capacity for managing large-scale projects and contributes to potential economic growth. There is curiosity about how the positive outcomes of the event balance with the substantial investments and associated costs, especially considering the financial outlay for infrastructure and operational expenses. The long-term utility of these investments and the risk of creating underutilized assets prompt further inquiry, as does the diversion of significant funds toward World Cup infrastructure and its opportunity costs for vital sectors like education and healthcare. The case explores the complex trade-offs involved in this economic evaluation, addressing questions about the broader societal challenges, including the treatment of migrant workers and the environmental impacts of such a massive event.