Economies under the Gulf Cooperation Council, which get benefited from elevated hydrocarbon prices, will be boosted by the upcoming FIFA World Cup 2022 in Qatar, S&P Global said.
The United States-based financial services provider also said that Dubai will gain from the world football showpiece event, among the Gulf Cooperation Council member nations.
Some 1.2 million fans will arrive for the grand event. While Qatar has kept 130,000 rooms ready for visitors, its Gulf Cooperation Council neighbors will be benefited too, as their aviation and tourism sectors are set for massive profits. With accommodation prices going up in Qatar, fans are mulling steps like staying in the neighboring nations and taking shuttle flights to Doha.
“That said, accommodation prices have increased in the Gulf Cooperation Council more broadly to reflect the increased demand,” said the S&P report.
Given its geographical proximity to Qatar, along with its well-established tourism, aviation sectors, and multiple-entry visas, Dubai is all set to serve as the major stopover for football fanatics, the report predicted.
Hotels are already estimated to be close to full capacity, with room prices set to soar till December mid-week.
“This is despite the supply of rooms having increased recently amid new hotel openings. We expect a 10% increase by end-2022 from about 140,000 rooms at end-2021,” S&P added.
The retail sector and shopping mall operators will benefit from the crowd rush, the report predicted. However, it does not expect the FIFA World Cup to have a material knock-on effect on Dubai’s real estate sector-related transactions.