Mubasher - Asmaa Al-Sayed: It is expected that a number of sectors and companies listed on the Saudi Stock Exchange will witness direct and indirect benefits as a result of the work accompanying the Kingdom’s preparations to host the 2034 FIFA World Cup, according to what experts and analysts confirmed in exclusive statements to “Information Mubasher.”

FIFA announced yesterday, Wednesday, that Saudi Arabia won the bid to host the 2034 FIFA World Cup, making the Kingdom the first Arab country to host the tournament alone under the new system.

Crown Prince Mohammed bin Salman stressed the Kingdom's great determination to contribute effectively to the development of the global game of football, armed with its great capabilities and potential, in addition to the energies of the people of the Kingdom and their high spirits to overcome difficulties, one of the fruits of which was winning the bid to host the World Cup officially.

Experts expect the Kingdom's spending on infrastructure to increase, which will benefit all entities operating in related sectors such as cement, iron and other basic materials, in addition to the tourism, hospitality, transportation, communications, and consumer and retail sectors.

Clear growth

Mohammed Al-Maimouni, a financial advisor in the stock markets, said that the awaited FIFA World Cup event in 2034 in the Kingdom will be titled “We Grow” and seeks to achieve this goal in the Saudi market.

Al-Maimouni explained that the Kingdom’s hosting of the 2034 FIFA World Cup will have a positive impact on many sectors, whether listed on Tadawul or in general, most notably the contracting and construction sector, supported by expectations of the launch of several stadiums in the coming period.

He added that there is also an expected recovery in the banking sector, as a result of companies resorting to obtaining financing to complete their expected expansions according to the nature of their activity, pointing out that there is another major benefit, which is the boom in tourism in the Kingdom as a result of this event.

He also pointed out that this anticipated event is usually preceded by other activities, which results in movement in the tourism sector through increased need for hotel rooms and other sectors, such as transportation, car rental, in addition to the communications sector and consumer goods as a result of increased demand for Saudi products of various kinds.

In general, Al-Maimouni said that all shares of companies operating in the aforementioned sectors are likely to benefit strongly, explaining that the buying momentum on these shares in “Tadawul” may appear at a later time.

Most Beneficial

For his part, Mohammed Al-Shammari, a financial markets specialist, said that the Kingdom’s hosting of the 2034 FIFA World Cup will have a positive impact on the Saudi economy in general, explaining that there are many sectors and listed companies operating in various activities that are likely to benefit directly and indirectly from this event, led by the tourism and hospitality sector, in addition to the commercial sectors in general, retail, and infrastructure.

Al-Shammari expected that the Kingdom would spend heavily on the infrastructure sector in the coming period, which would enhance growth in all companies operating in it, and others producing iron, cement and other basic materials.

He stated that the popularity of these sectors, especially the tourism sector, enhances the companies’ contribution to the gross domestic product, in addition to creating many jobs in several fields, and thus the unemployment rate decreases, which ultimately benefits the overall economy in the Kingdom.

World Tourism Map

In a related context, Raed Diab, Senior Vice President of Research and Investment Strategies at Kamco Investment Company, said that Saudi Arabia hosting the World Cup will have many economic benefits as it will enhance the Kingdom’s position on the global tourism map by attracting millions of visitors.

He pointed out that the activity of the tourism sector will significantly increase the revenues achieved through it and improve the performance of hotels, restaurants and transportation in general.

Diab added that the second benefit will be attracting more investments in infrastructure related to this event, whether roads, stadiums, public facilities, etc., and thus these sectors will benefit from this event.

He pointed out that within the integrated cycle, the banking sector is one of the beneficiaries of this event, as credit facilities will increase, considering that the Kingdom's hosting of the World Cup will provide many jobs and create new job opportunities in many sectors such as local trade and retail, and will also be reflected in the entertainment and media sector.

He also expected that these effects would begin to appear with the start of preparing the infrastructure and would have a noticeable impact at the time of the event with millions flocking to attend the matches and learn about the culture of the Kingdom and the region. The Kingdom may also continue to attract many companies to invest in it after the end of the event.

He expected that this major event would enhance cooperation between the Gulf countries and the participation of Gulf companies and their benefit from the expected growth.

Highest technical rating

It is noteworthy that the Minister of Sports, Chairman of the Saudi Olympic and Paralympic Committee, Abdulaziz bin Turki Al-Faisal, recently said that the Saudi 2034 bid file receiving the highest technical evaluation from FIFA in the history of the World Cup reflects the exceptional work and great empowerment of the Crown Prince and Prime Minister, Prince Mohammed bin Salman.

At the end of last July, the International Federation of Association Football (FIFA) revealed the details of the Kingdom of Saudi Arabia’s ambitious file to host the largest edition ever in the history of the World Cup, organized in one country and with 48 teams; this came after the Kingdom officially submitted its file to host the FIFA World Cup™ 2034 in the French capital, Paris.