Sports sustainability in the GCC depends on public-private partnerships

About the GCC

The Gulf Cooperation Council (GCC) is a political and economic alliance consisting of six countries located in the Arabian Peninsula: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Established in 1981, the GCC aims to promote economic integration, political cooperation, and military collaboration among its member states, as well as coordinate on various regional and international issues.

The Gulf states’ strategic investments in sports have designated the region as a sporting hub capable of hosting the grandest global tournaments and attracting the greatest athletes. The 2022 Qatar FIFA World Cup and Formula 1 in Saudi Arabia have illustrated how the GCC is utilizing sports to develop and diversify their economies away from fossil fuels by promoting tourism, entertainment, and infrastructure development. While large sporting events can help to diversify Gulf economies, greater public-private sector collaboration is needed for such development to be sustainable.

Through national strategies such as Saudi’s Vision 2030 and Qatar Vision 2030, Gulf countries have outlined the importance of capitalizing on sports to diversify their economies. While public investment funds and authorities have shown their capacity to buy renowned international sports clubs and athletes, such actions must be followed by private sector involvement in supporting grassroots sporting ventures.

In 2021, the Saudi Public Investment Fund (PIF) took over Newcastle United F.C. in England, placing Saudi Arabia as a significant player in global sports. This led to global recognition that allowed for the influx of international talent like Cristiano Ronaldo and Neymar to Saudi leagues. While the country imports such icons, they have yet to make significant strides in developing exportable soccer talent.

While the PIF and other GCC investment authorities have successfully targeted mega sporting events and celebrities, such actions may lack the long-term community impact needed to sustain the role of sports in the region.

Over Reliance on public funding can crowd out private companies that could instead be leveraged to promote innovation and local human capital. Public-private partnership (PPP) will ensure stability and sustainability within the sports sector in the Gulf. Given this, in 2020, Qatar established a PPP regulatory system that would further privatization in the country. This has driven PPP in healthcare, education, and hospitality, resulting in greater development and income in the sectors. Such a model can be heavily applied to drive innovation that only the private sector can source within the sports sector. By partnering with private entities, Qatar can ensure it not only gains from short-term mega sporting events but also cultivates infrastructure that serves long-term human capital development.  

Public funding in the GCC has and will continue to establish the region as a significant player in global sports. GCC governments should capitalize on this recognition and prestige to encourage local and international private firms to become active stakeholders in sports in the region. The stability offered by public investments funds and international prestige can serve as backbone for private entities who can innovate and develop grassroots initiatives that create a longstanding sports ecosystem within the Gulf.  

While the GCC must localize such strategies, an example of PPP in sports is the model of privately owned sports teams who occupy government-operated facilities in the U.S. This has allowed for sports teams to spend on technological innovation and develop programs targeting local communities while utilizing some public resources. Vibrant sports public-private partnerships have the capacity to support sustainable economic stability, innovation, and grassroots development in the GCC.

About the author

Nuha Khan is a graduate student at Johns Hopkins University SAIS focusing on the Middle East and economics. She is the founder of GoalDiplomacy, a platform that explores the intersection of sports and global affairs.