Sport in the Middle East: A Vehicle for Economic Diversification
Several Middle East nations have invested billions of dollars into the sports industry in recent years in a bid to diversify their economies away from energy revenues.
The United Arab Emirates has been at the forefront of the push, spreading their wings into motorsports, football, boxing and many other sports.
The Race to Diversify Economies
With the world moving towards renewable energy, Middle Eastern governments have responded by exploring different revenue streams.
Football is arguably the centrepiece of the project. The Abu Dhabi United Group bought Manchester City in 2008 and placed it under its City Football Group umbrella. They have transformed the club into a European behemoth, winning over 20 trophies since then.
City Football Group has also spread its wings globally, buying stakes in clubs in the United States, Australia and several other countries.
Qatar has also used football as an economic vehicle. They hosted the 2022 World Cup, which was a massive success despite detractors constantly probing for faults.
The sight of Argentina’s Lionel Messi lifting the title in a traditional bischt given to him by the Emir of Qatar, Tamim Bin Hamad Al Thani, was an iconic moment.
Saudi Arabia has been the most aggressive Middle East nation in sport. The kingdom’s Public Investment Fund (PIF) acquired Newcastle United and funnelled money into the club.
They took control of Saudi Pro League clubs, bankrolling an unbelievable spending spree on major stars such as Cristiano Ronaldo, Neymar, N’Golo Kante, Sadio Mane and Karim Benzema.
Saudi Arabia will also host the 2034 FIFA World Cup, which will further cement their status as a new sporting powerhouse.
The Saudis disrupted the status quo in golf when they launched the LIV Golf tournament and signed former world number ones Dustin Johnson, Martin Kaymer and Lee Westwood.
They also persuaded former champions Sergio Garcia, Graeme McDowell, Louis Oosthuizen and Charl Schwartzel to switch from the PGA Tour.
Combat sports have found a lucrative home in the Middle East, with Saudi Arabia hosting boxing matches featuring heavyweights Anthony Joshua, Tyson Fury and Oleksandr Usyk. The UFC and WWE have also staged major events in the Gulf.
Formula One now schedules seasonal races in Bahrain, Saudi Arabia and the UAE. The final race every season is at the Abu Dhabi Yas Marina Circuit. This is where the title is often decided.
The UAE Changes its Approach to Betting Regulation
The UAE has recently relaxed its long-held opposition to gambling. The region has always frowned on betting, with access restricted in countries for cultural and religious reasons.
However, the UAE recognised the link between the sports and betting industries. They established the General Commercial Gaming Regulatory Authority (GCGRA) in 2023 and started issuing gambling licences.
Dubai and Abu Dhabi are already tourist and entertainment centres, and allowing the gambling industry free rein will generate billions of dollars in revenue.
Physical casinos and sports betting sites in the UAE will bolster the local economy, creating jobs and other economic opportunities.
The UAE will operate a heavily regulated sports betting industry like other major jurisdictions, boosting its status as a global entertainment and sports empire.
Investing significant resources is not just a ploy for financial returns. It is a means to rebrand, gain international influence and bolster the economy.
With Saudi Arabia hosting the 2034 World Cup and the UAE redefining its stance on sports betting, the Middle East is poised to be a mainstay in sports discussions.
The Middle East is evolving and diversifying at a rapid pace, and there is no ceiling to the growth potential of sport across the region.