If you're a soccer fan chances are that you're as upset as I am with the recent announcement that the 2022 World Cup will not be held in the United States... but rather in the Qatar. Located in the Middle East, Qatar is roughly the size of Rhode Island but boasts the second highest GDP per capita (Luxembourg being number one). The U.S. was not the only contender that fell short in their attempt to host the tournament, Australia, Japan, South Korea, and Indonesia also placed bids. In researching FIFA's decision I must admit that Qatar's pitch to the committee was impressive to say the least. The link below provides a video of some of the stadiums that will be built.
http://www.brandchannel.com/home/post/2010/12/02/World-Cup-2018-2022.aspx
The article below discusses some of the financial implications of the announcement last week. First, equities in Qatar are not surprisingly at their highest level in two years. The economic growth that can be caused like this is often times underestimated. Here is a country, already second in GDP per capita, that is going to need to build 9 stadiums, refurbish 3 more, and build a metro line. Imagine tiny little Rhode Island building 9 stadiums and their own metro line. The reason for equity prices jumping is that employment will skyrocket and say high for probably the next 10 - 12 years. All of these people now with more expendable cash will spend it, and thus the cyclical nature of economics will take over. The article also mentions one of the really cool features of the upcoming event: Air Conditioned Stadiums. With temperatures expected to be safely above 100 degrees, this will be almost a necessity.
The article below discusses some of the financial implications of the announcement last week. First, equities in Qatar are not surprisingly at their highest level in two years. The economic growth that can be caused like this is often times underestimated. Here is a country, already second in GDP per capita, that is going to need to build 9 stadiums, refurbish 3 more, and build a metro line. Imagine tiny little Rhode Island building 9 stadiums and their own metro line. The reason for equity prices jumping is that employment will skyrocket and say high for probably the next 10 - 12 years. All of these people now with more expendable cash will spend it, and thus the cyclical nature of economics will take over. The article also mentions one of the really cool features of the upcoming event: Air Conditioned Stadiums. With temperatures expected to be safely above 100 degrees, this will be almost a necessity.
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