[The Editors' Verdict] Uncomfortable Perspectives on the 'Oil Money' World Cup

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Side Effects Emerge Everywhere as the Qatar World Cup Kicks Off

[Asia Economy Jung Doohwan, Trend Managing Editor] The year 2017 marked a major turning point for Saudi Arabia, known as the powerhouse of the Middle East. That year, King Salman bin Abdulaziz Al Saud of Saudi Arabia declared, "We will reduce oil dependency to 50% and reform the economic structure." Since then, the central figure in Saudi reforms has been Crown Prince Mohammed bin Salman. His radical ‘de-Islamic fundamentalism’ approach has caused significant ripples not only in the Middle East but also in the global economy.

There is another figure who has shown equally radical moves: Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar. Ascending to the throne in 2013 at the young age of 33, he declared upon inauguration that he would "adhere to Qatar’s unique vision," even at the cost of severing ties with neighboring countries, and accelerated the reform and opening-up policies initiated by his father. From the early days of his reign, he met consecutively with major Western leaders such as former U.S. President Barack Obama and former British Prime Minister David Cameron, building close relationships with Western countries. He is considered the youngest leader at the forefront of Islamic reform and openness.

The reform and opening-up policies of Middle Eastern countries, backed by oil money, have recently attracted more attention due to concerns over a global economic slowdown. Large-scale infrastructure investments aimed at reducing oil dependency have become a much-needed boon. Following Qatar’s massive expenditure of over 300 trillion won to host the World Cup, Saudi Arabia is sending out love calls with the ‘NEOM City’ project, the world’s largest infrastructure project valued at 640 trillion won.

However, when it comes to the sports sector, views on the oil money offensive are mixed. There is criticism that wealthy Middle Eastern countries are turning sports into money festivals. Already, Emir Tamim purchased the prestigious French Ligue 1 club Paris Saint-Germain in 2011 while he was crown prince. Newcastle United of the English Premier League (EPL) was sold last year to a consortium led by Saudi Arabia’s Public Investment Fund (PIF). The sale price was ?305 million (about 500 billion won). Recently, reports emerged that Dubai’s sovereign wealth fund, Dubai International Capital (DIC), proposed an astronomical ?4.3 billion to acquire EPL’s Liverpool club.

The Qatar World Cup, which opened on the 20th, is also clouded by various controversies. Qatar poured in 307 trillion won, 17 times the amount spent on the Russia World Cup, and staged the first-ever ‘winter World Cup’ to avoid the heat, but the event has been rocky from the start. During the opening match, despite it being Qatar’s national team game, many local spectators left the stadium after the first half, leaving many seats empty. The Qatar team, which includes four naturalized players bought with money, is viewed with skepticism. Human rights abuses against foreign workers during stadium construction and ongoing controversies over discrimination against women have also not ceased.

Though overshadowed by bigger issues, South Korea is also threatened by Middle Eastern capital. Last month, the Asian Football Confederation (AFC) selected Qatar as the host for next year’s Asian Cup. South Korea made every effort to host the tournament after China withdrew due to COVID-19, but ultimately could not overcome Qatar’s high bid, which was more than twice as much. Analysts say that Saudi Arabia’s support for Qatar, with an eye on hosting the next tournament scheduled for 2027, also played a role.

The power of oil money pouring into sports through Middle Eastern pipelines is formidable. However, this power is ironically undermining the purity of sports. It is a new dilemma faced by the sports world, including South Korea and the global sports community.