Qatar's World Cup 2022 - In Pursuit of the Diversification GoalSovereigns
With Qatar hosting the first FIFA World Cup in the Middle East from 20 November to 18 December 2022, DBRS Morningstar takes a look at how this major sporting event aligns with Qatar's economic diversification agenda and what the event and its related substantial investment could mean for Qatar's growth prospects in the longer term, beyond this year's economic boost. We also take a look at how a major liquified natural gas (LNG) expansion project in Qatar is expected to support the country's economic prospects.
• Infrastructure investment in Qatar related to the World Cup has been substantial, in line with its National Vision 2030, helping to grow the non-hydrocarbon sector.
• In DBRS Morningstar's view, Qatar has made progress in diversifying its economy, updating its infrastructure and adopting reforms.
• Looking ahead, the expansion in LNG capacity is positive for Qatar's economic prospects, even if it will likely also increase Qatar's reliance on gas.
“Although diversification remains somewhat limited, Qatar’s efforts to diversify its economy have been significant over the past decade ahead of the World Cup,” said Adriana Alvarado, Senior Vice President in the Global Sovereign Ratings Group. “Looking ahead, additional structural reforms and investments will be key for further diversification and economic prospects, amid growing competition from other states in the region. The LNG expansion project will definitely support Qatar’s economic growth over the medium term.”