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    Home»Business»World Cup award adds pressure to Saudi Arabia’s construction challenge
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    World Cup award adds pressure to Saudi Arabia’s construction challenge

    Press RoomBy Press RoomJanuary 6, 2025No Comments5 Mins Read
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    Fifa’s decision to award Saudi Arabia the 2034 World Cup has started the clock on a huge logistical undertaking to build the infrastructure needed to welcome football fans from around the world.

    With eight new stadiums including a futuristic clifftop venue planned, the World Cup has become the kingdom’s latest infrastructure deadline as it invests heavily to become a global sports hub. It will host football’s Asian Cup in 2027 and the multi-sport Asian Winter Games in 2029.

    The demands add to several major projects that are part of Vision 2030, Crown Prince Mohammed bin Salman’s plan to reduce the economy’s dependence on oil revenues.

    Despite the bold vision, Saudi officials acknowledge that they have recalibrated some plans as they assess the kingdom’s ability to complete projects on time.

    “You want to showcase the country and make sure that things are ready by the time of these events,” finance minister Mohammed al-Jadaan said in a recent briefing on the state budget. “We have taken that into consideration in terms of making sure that what we have planned in terms of new stadiums and connectivity is ready for 2034.”

    A view inside the Saudi Arabia World Cup bid exhibition in Riyadh
    Information on World Cup infrastructure connectivity at the Riyadh exhibition © Hamad I Mohammed/Reuters
    A stadium model on show at the Saudi Arabia World Cup bid exhibition in Riyadh
    A stadium model on show at the exhibition © Hamad I Mohammed/Reuters

    With some projects part of Riyadh’s existing tourism and sporting ambitions, he added: “It’s not an event that actually puts an additional pressure on your fiscal plan. It’s part of the total plan that existed.”

    The 10-year timeframe adds an element of fiscal unpredictability due to the continued importance of crude prices to the kingdom’s finances, experts said.

    “A scenario with consistently low oil revenue, under which the financing of key infrastructure becomes difficult, is imaginable but not the most likely outcome,” said Steffen Hertog, an associate professor at the London School of Economics, who added that “spending related to the World Cup will be prioritised” over other projects given the reputational risk of not delivering work for the tournament on time.

    Saudi Arabia has launched real estate and infrastructure projects worth $1.3tn since Vision 2030 was unveiled in 2016, according to estimates by consultancy Knight Frank. These projects, such as the Neom linear smart city, include adding more than 362,000 hotel rooms and 7.4mn square metres in retail space.

    Football has become one of Prince Mohammed’s prime targets for sporting investment. The country’s sovereign wealth fund acquired English Premier League side Newcastle United, while superstars such as Ronaldo and Neymar have been lured to play in the Saudi Pro League.

    Saudi Arabia’s bid said the 48-team World Cup would be played in 15 stadiums across five cities. Eight stadiums would be in or close to Riyadh, which is already undergoing a construction boom that includes an entertainment zone to the west and a major expansion to the capital’s airport.

    A map of Saudi Arabia highlighting planned, under construction and under refurbishment stadiums for the 2034 FIFA World Cup. Locations include Riyadh, Jeddah, Neom, Abha and Al-Khobar

    Human rights groups have already raised a host concerns about the World Cup as the construction programme gets under way, including the rights and welfare of the kingdom’s ranks of construction workers.

    “Today, there is no shortage of evidence of migrant workers being exploited and subjected to racism, activists sentenced to decades in prison for expressing themselves peacefully, women and LGBTI people facing legalised discrimination, or residents forcibly evicted to make way for state projects,” said a joint statement by rights organisations, trade unions, fan groups and organisations representing migrant workers.

    Fifa has also faced criticism for allowing the kingdom’s bid to run unopposed despite pledges to boost transparency over how World Cup tournaments are awarded.

    But Saudi officials have brushed aside both criticisms, arguing they presented a strong bid that would have withstood competition. Fifa’s technical assessment, meanwhile, said the tournament could serve as a “catalyst” for delivering “positive human rights outcomes” in Saudi Arabia.

    Other concerns include whether Riyadh will lift its ban on alcohol in time for the event and the prospect of another winter tournament like the 2022 edition in Qatar given the desert kingdom’s extreme temperatures. The timing would also need to consider the Muslim fasting month of Ramadan and the Hajj pilgrimage.

    Campaigners also worry about the environmental costs, pointing to the limited reuse of some stadiums and other infrastructure in Qatar.

    Back in Riyadh, after the Saudi bid was endorsed by “acclamation” or a clapping of hands at an online Fifa event, thousands of fans celebrated at dozens of locations set up by authorities to mark the occasion.

    The kingdom’s football fans believe their passion for football has been rewarded. In 2022, tens of thousands of them regularly crossed into Qatar to watch World Cup matches. One man told state television that he felt “a hysterical joy” that Saudi Arabia would be the 2034 host.

    Acknowledging the new challenge the kingdom has set itself at a gathering in Riyadh, sports minister Prince Abdulaziz bin Turki al-Faisal pledged to deliver an “exceptional and unprecedented edition of the tournament”.

    “It is a day that we invited the entire world to Saudi Arabia.”

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