Standard & Poor’s Financial Services has released a report forecasting the economic impact of the FIFA World Cup in Qatar and the GCC.
And the region’s retail sector is set to benefit significantly from the month-long tournament.
S&P expect Dubai to be the major beneficiary, given its geographical proximity and its already well-established tourism offering, retail attractions, airline connections and multiple-entry tourist visas for World Cup ticket holders.
Higher international visitor numbers will especially increase traffic in malls, which have been gradually recovering since the pandemic.
Mall operators will benefit from improved footfall, which to date remains below pre-pandemic levels, on average, although it is partly offset by higher spending per person. In turn, higher footfall will propel the recovery of the retail industry, thereby temporarily increasing the variable lease component that will benefit mall operators, the report said.
Even so, new projects this year have increased retail space by more than 20 per cent, leading to additional capacity that will put pressure on rental rates and occupancy in the longer run.
S&P estimate real GDP growth of 4.8 per cent in 2022, a sharp increase on 2021 (1.5 per cent), partly due to the additional economic activity associated with the World Cup, but also reflecting the ongoing recovery following the removal of Covid-19-related restrictions.
The agency estimates non-oil GDP growth in 2022 at 8 per cent, compared with close to 3 per cent in 2021.
