The mystery to Qatar bribing and influencing its way into getting hosting rights for the forthcoming World Cup 2022 is finally getting solved.
There are reasons to believe that the tiny but rich Arabian country had found a way to propel its economic growth, via the hosting and construction of facilities for the world’s most awaited sporting event.
For years, Qatar’s economy has sped forward post receiving the hosting rights and propelled by $200 billion of infrastructure works to prepare for the 2022 World Cup. As it has battled bravely the embargo against the quartet, it has had to look for alternatives to diversify its economy. So, moving away from oil and gas, it took to brisk construction that brought in high demand for property and kept the economy growing.
Since 2010 therefore, builders have raced with each other to get the infrastructure ready till 2020. It was a surprise to the whole world that this small peninsular nation unexpectedly had won the right to host the 2022 World Cup, a decision that has been marred in controversy.
But now that construction works are coming to an end, rents have started to fall. Political analysts can see that the $192 billion economies are now the toll of a large infrastructural strain.
Back in 2010, Qatar used this golden opportunity to do up its reputation and wanted to be taken seriously. The Gulf state went onto upgrade its infrastructure, building roads, metro lines and thousands of hotel rooms. Construction surged over 30 percent at the start of 2015.
The Embargo by Saudi Arabia, UAE, Bahrain, and Egypt had closed trade routes and avenues for Qatar who is the world’s largest resource for natural gas and oil.
With its exports closing down, output excluding oil and gas extraction also started to shrink, for the first time since records began in 2012, dropping an annual 1.1% in the second quarter, according to Qatar’s Planning and Statistics Authority.
Overall, the economy of the world’s largest exporter of liquefied natural gas has now reportedly shrunk by 1.4% from a year earlier. Qatar may have to look for a new card to play, lest it wants to keep digging into its rich coffers which don’t seem to be getting replenished at the moment.