(Bloomberg) -- Saudi Arabia wields enormous influence in global sport after channeling billions of dollars into such pursuits as racing, golf, tennis and boxing in recent years. Now, the oil-rich kingdom has won the right to host the world’s most prestigious football tournament: the World Cup. The only time the competition has ever been held in an Arab Gulf country was in 2022, in the tiny emirate of Qatar — and it happened amid considerable controversy. Games were shifted to the winter to avoid the hot climate, human rights practices drew widespread scrutiny, and beer was banned from stadiums at the last minute. Qatar still went on to hold what some pundits say was one of the best-run tournaments in history.
The event is headed to the Middle East for a second time, to a country that raises some of the same concerns. The Federation Internationale de Football Association (FIFA), soccer’s ruling body, on Dec. 11 awarded Saudi Arabia the hosting rights for the 2034 World Cup.
Why Saudi Arabia?
After Australia pulled out, Saudi Arabia was the only bidder to host the tournament, which is held every four years, in 2034. Crown Prince Mohammed bin Salman has been leading an effort to diversify the Saudi economy away from oil by building new industries, promoting tourism, and expanding entertainment options for the country’s young population. To that end, he’s been making big bets on sports.
Saudi Arabia is already home to an annual Formula 1 Grand Prix and is set to host the Asian Football Confederation’s 2027 Asian Cup and the 2029 Asian Winter Games. Its upstart LIV Golf competition is working on a deal with the rival PGA Tour. And its local football league counts top stars including Cristiano Ronaldo among players. Adding the World Cup could attract millions of new visitors, helping to draw in fresh sources of revenue.
How were the Saudis the sole bidder?
The competition was limited from the start because FIFA requires that the 2034 tournament be held in Asia or Oceania. Australia withdrew after deciding to focus on other sporting events it’s hosting in coming years. Other nations may have hesitated to bid in the face of Saudi Arabia’s readiness to commit billions of dollars to football infrastructure and its strong relationship with FIFA. Oil giant Aramco, which is majority-owned by the Saudi government, is a sponsor of the 2026 World Cup in North America and the 2027 Women’s World Cup in Brazil.
Starting in 2026, the World Cup is set to expand to include 48 teams instead of 32, significantly increasing the demands on host nations. Accordingly, that year’s event will be jointly hosted by the US, Mexico and Canada. Then, in 2030, FIFA plans to celebrate the World Cup’s centennial with an unprecedented multicontinent arrangement, with games played in Argentina, Uruguay, Paraguay, Spain, Portugal and Morocco. Against the backdrop of collaborative bids, Saudi Arabia’s plan to host solo in 2034 is ambitious. The kingdom hasn’t revealed cost estimates for its plans. Qatar spent around $200 billion to host in 2022, though that figure included projects such as a new underground railway that would’ve been built even without the tournament.
What are the human rights and social issues?
Two US senators, Ron Wyden and Dick Durbin, had urged FIFA to reject the Saudi bid, citing the country’s human rights record. Advocacy rights groups such as Human Rights Watch and Amnesty International have raised concerns about the exploitation of foreign workers, as other critics did when Qatar was the World Cup host and used foreign laborers to build stadiums and accommodation. In its 2023 annual human rights report, the US State Department said other significant issues include discrimination against women and restrictions on freedom of expression.
Saudi Arabia has introduced seismic changes over the last eight years under the economic overhaul known as Vision 2030 and led by Prince Mohammed. Women have gained the right to drive and travel independently, and social rules have been loosened to allow gender mixing in public. Once-taboo events such as music festivals and comedy shows are now commonplace weekend activity. However, Saudi Arabia’s culture is still largely conservative and the kingdom does not recognize LGBTQ rights. It says all communities will be respected at the 2034 World Cup.
What are the weather issues?
Like Qatar, Saudi Arabia is known for extreme temperatures in the summer. Cities including Riyadh and Jeddah regularly experience heat in excess of 40C (104F) during the western hemisphere summer, though places such as Abha — one of the five cities where Saudi Arabia plans to hold World Cup matches — are generally cooler. Qatar beat the heat by having the tournament from mid-November through mid-December — a move that caused complaints among some club owners, who said moving the tournament would disrupt football’s domestic leagues and risk mid-season injuries to star players. In winter, the host Saudi cities tend to be cooler than Europe in summer. The kingdom said it’s ready to host the World Cup at any time and that a decision on the timing of the event will be up to FIFA. It’s more likely than not that the 2034 tournament will bring with it another disruption to football club calendars.
Will there be alcohol?
One of the biggest questions surrounding a World Cup in Saudi Arabia is whether alcohol will be served. While the sale and consumption of alcohol is generally prohibited in the country, there has been a tiny loosening of the rules. Saudi Arabia opened its first liquor shop in Riyadh in early 2024, though it’s strictly for non-Muslim diplomats and there has been no indication the country plans to expand the offering.
FIFA banned beer at stadiums at the last minute before the 2022 World Cup in Qatar at the request of the host, though fans had plenty of options at other venues. And limiting booze at major sporting events isn’t unheard of. Alcohol was only available to VIP ticket holders at the Paris 2024 Olympics, and the English Premier League doesn’t permit spectators to drink in the stands.
What are the Saudi building plans?
Saudi Arabia’s plan is to have 15 stadiums for World Cup matches spread across five cities. Eleven would be built from scratch, while four would be upgraded to meet FIFA standards. A majority of the sites are set to be in the capital Riyadh. Other host cities are Jeddah, Al Khobar, Abha and Neom, a new urban area in the northwest.
The kingdom said it aims to have more than 230,000 hotel rooms across host cities for fans and teams and is working to expand its air capacity. Saudi Arabia also intends to launch its second flagship airline, Riyadh Air, next year, with the target of connecting to more than 100 destinations and serving 100 million travelers annually by 2030. Train lines and bus routes will be extended to facilitate travel across the country.
©2024 Bloomberg L.P.