São Paulo – Qatar should invest US$ 115 billion to organize the 2022 World Cup. The forecast, disclosed on Monday (18) by the British Standard Chartered bank forecasts that infrastructure should consume the lion’s share of investment starting this year. Funds should be turned to the 12 stadiums in coming years.
According to the bank’s study, funds for preparation of the country for the Cup should start being invested this year, after few works turned to the World cup having been made in 2012. For the next five years, for example, the government forecasts spending of US$ 20 billion in sewage collection networks and construction of highways.
“In [the first quarter of] 2013, we have seen positive signs related to Qatar’s spending commitments for FIFA 2022. In addition, so far this year, the government has awarded a number of projects related to the country’s decade-long infrastructure commitments. Some of these projects should break ground by [the second half of] 2013,” says the report disclosed by the bank.
Standard Chartered’s forecast is that most of the US$ 115 billion should be spent in the middle term and should be turned to basic infrastructure. To host the Cup, Qatar needs 90,000 hotel rooms, a metro system and a nation-wide railway system. “Sport-related infrastructure (i.e. football stadiums) is more likely to begin midway through Qatar’s decade-long spending cycle,” shows the document.
For the World Cup, 12 stadiums should be built, with part being disassembled and donated to African nations after the event. The government of Qatar is negotiating the donation of these stadiums to some governments.
The Standard Chartered report also forecasts that the building works should push prices and increase inflation in the country, which was 3.4% in the period from January 2012 and January 2013. The bank’s expectations are for inflation this year to reach 3.8%, but to rise in 2014, due to costs with imports of building products and transportation.
*Translated by Mark Ament
