By Samindra Kunti
February 9 – Qatar will award $22 billion worth of new contracts in 2016 as the Emirate maintains its spending spree in advance of the 2022 FIFA World Cup.
In 2010 the Gulf nation won the right to host football’s biggest jamboree after a controversial bidding process involving Japan, South Korea, Australia and the United States.
Ever since Qatar has faced a panoply of problems, including accusations by the international media of human rights violations in stadium construction.
The sharp drop in oil and gas prices is another headache for the energy-rich country. Qatar sits on 12.7% of the world proven reserves of natural gas and 1.5% of crude oil wealth, according to US Energy Information Administration.
The world’s largest exporter of liquified natural gas is forecasting a budget deficit of $12.77 billion this year. As such $22 billion worth of contracts will be awarded in Qatar in 2016, according to regional projects tracker Meed. That is about 24% lower than the $29.3 billion worth of deals awarded last year.
Qatar has embarked on a huge infrastructure spending splurge worth $200 billion ahead of hosting the top football tournament. The Emirate recently also announced intentions to bid for the 2028 Olympic Games. Qatar’s drive to become a global player in the world of sports is embedded in the country’s broader ‘2030 vision’ to create a sustainable future without natural resources.
Qatar’s World Cup budget is dwarfing what both Brazil and Russia spent and will spend on the tournament. Brazil spent an estimated $14 billion on hosting the event in 2014. Russia’s total expenditure is projected to be $11.8 billion as the Russian government seeks to implement a wide policy of reducing government spending amid a shrinking local economy.
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