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Saudi Arabia’s 2034 World Cup: A Catalyst for Economic Transformation

Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
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Saudi Arabia’s 2034 World Cup: A Catalyst for Economic Transformation

Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)

 

As the official announcement approaches on December 11 for the host of the 2034 FIFA World Cup, all eyes are on Saudi Arabia, as this monumental sporting event is poised to bring about a transformative economic shift, aligning with the Kingdom’s vision of fostering a diversified and sustainable economy.
The tournament is expected to have a significant impact on Saudi Arabia’s local economy, driving foreign investments and revitalizing sectors such as tourism, transportation, and infrastructure. Additionally, it will serve as a catalyst for major projects like NEOM and Qiddiya, reinforcing the Kingdom’s position as a global destination and supporting the goals of Vision 2030, which emphasizes economic diversification and the expansion of non-oil sectors.
On Saturday, FIFA announced that the Saudi bid to host the 2034 World Cup achieved a technical evaluation score of 419.8 out of 500, the highest score ever awarded in FIFA’s history for a World Cup bid. This milestone reflects Saudi Arabia’s leadership and ongoing transformation into a hub of innovation and development.
The Kingdom officially submitted its bid in July at a FIFA ceremony in Paris. Experts believe that hosting the World Cup will attract millions of visitors worldwide, boosting key sectors such as hospitality, transportation, and entertainment. Furthermore, it is expected to attract substantial foreign investments in large-scale projects, including sports infrastructure and urban development.
Major Projects
Economic policy expert Ahmed Al-Shehri told Asharq Al-Awsat that hosting the tournament will significantly enhance Saudi Arabia’s tourism economy. The influx of millions of visitors is expected to boost revenue across sectors such as hotels, restaurants, transportation, and entertainment. He also noted that major projects like the Red Sea Project and Qiddiya will benefit from infrastructure upgrades, solidifying Saudi Arabia’s status as a global destination for tourism and investment.
Al-Shehri added that the event will strengthen international confidence in Saudi Arabia’s economy, encouraging foreign investors to channel capital into sectors such as sports, entertainment, and technology. He highlighted that infrastructure improvements, including transportation systems and sports facilities, will yield long-term benefits for the local economy and citizens.
Investment Partnerships
Economic analyst Rawan Bin Rubayan described hosting the World Cup as a historic opportunity with multifaceted benefits for the Saudi economy. Global events of this magnitude, she explained, enhance the Kingdom’s reputation as a leading investment and tourism destination while unlocking growth opportunities across various industries.
She highlighted that hosting the World Cup will increase Saudi Arabia’s appeal to international investors, particularly in sectors like hospitality, entertainment, transportation, and infrastructure. Constructing state-of-the-art stadiums and facilities will foster major investment partnerships and position Saudi Arabia among the world’s top organizers of international sporting events.
Bin Rubayan emphasized how the event complements Vision 2030, which prioritizes economic diversification and supports flagship projects like NEOM, Qiddiya, and the Red Sea Project. These initiatives are expected to accommodate millions of visitors, ensuring their long-term sustainability through heightened global visibility and investment.
Boosting the Tourism Sector
Bin Rubayan pointed out that sectors such as tourism and hospitality—including hotels, restaurants, and local retail—are set to experience significant growth due to rising demand, which will stimulate the local economy and generate new job opportunities.
She also noted that infrastructure upgrades, including advanced road networks and mass transit systems, will leave a lasting legacy, benefiting future generations and improving overall quality of life, stressing that the event is expected to boost international confidence in the Saudi economy and create long-term strategic partnerships.
Bin Rubayan characterized the 2034 FIFA World Cup as a key driver of economic growth and a pivotal moment in Saudi Arabia’s journey toward achieving Vision 2030. She added that the tournament promises to foster a more diverse, resilient, and sustainable economy while reinforcing the Kingdom’s status as a global powerhouse in sports, tourism, and innovation.

 

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Business

Geopolitical Tensions Reshape Global Corporate Priorities

Container ships at a Saudi port (SPA)
Container ships at a Saudi port (SPA)
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Geopolitical Tensions Reshape Global Corporate Priorities

Container ships at a Saudi port (SPA)
Container ships at a Saudi port (SPA)

Global companies are being forced to rethink where they invest, produce and source goods as geopolitical tensions and trade disputes make cost and efficiency alone insufficient to guide business decisions.

Rivalry among major powers, mounting trade restrictions and supply chain disruptions are prompting businesses to reassess their markets, suppliers and exposure to risks beyond national borders.

The shift marks a gradual retreat from an economic model built on maximizing efficiency through global production networks toward one that prioritizes security, resilience and the ability to weather crises.

Diversifying suppliers and markets is no longer simply a growth strategy. It has become a safeguard against dependence on specific sources and an increasingly volatile global environment, even if that means higher costs.

The scale of the shift is evident in the International Chamber of Commerce's 2026 survey, released by the World Chambers Federation. It found that 70% of chambers of commerce worldwide ranked geopolitical tensions as a leading business challenge, up 14 percentage points from 2025.

Political risks have now overtaken tariffs and inflation as the biggest concern for businesses and markets.

Trade risks force a rethink of priorities

Uncertainty is no longer confined to conflict zones. It is spreading across economies and weighing on business conditions, according to the survey, a copy of which was obtained by Asharq Al-Awsat.

Chambers of commerce in 61% of the countries surveyed said the trade environment was hurting their operations in 2026.

Trade uncertainty topped the list of concerns, cited by 70% of chambers, followed by tariffs at 63% and import and export restrictions at 39%.

The figures highlight the mounting pressure on businesses as trade barriers rise and fears of retaliation threaten the flow of goods and investment.

The fallout goes beyond international trade, driving up production costs and prices.

Chambers in nearly nine out of 10 countries reported rising prices, while those in eight out of 10 expected inflationary pressures to persist, indicating that businesses and markets are absorbing some of the costs of trade disruptions.

Companies are responding by redrawing their trade networks rather than relying on a narrow pool of suppliers and markets.

Export diversification emerged as the leading strategy, favored by 73% of respondents, followed by switching to alternative suppliers at 64%.

Relocating production, meanwhile, continued to lose favor, suggesting companies would rather strengthen and diversify existing networks than move manufacturing operations on a large scale.

Cautious optimism amid rising risks

Despite the mounting challenges, the business outlook is far from uniformly gloomy.

Chambers of commerce rated economic conditions as good, very good or excellent in more than half the countries surveyed. Only 10% or fewer of the countries received poor or very poor ratings.

Expectations for business activity also improved.

Chambers in six out of 10 countries anticipated an increase in activity, up from five out of 10 in the 2025 survey.

The findings suggest businesses are not necessarily pulling back. Instead, they are adapting to new risks and reorganizing operations to sustain growth in a more volatile environment.

AI emerges as economic opportunity and geopolitical battleground

The forces reshaping global business extend well beyond trade and supply chains. Technology has become another arena of economic and geopolitical competition.

Artificial intelligence is at the center of that shift.

As companies race to harness AI to boost productivity, the technology is also becoming closely tied to countries' ability to secure advanced chips, infrastructure, data centers and the computing power needed to develop it.

The survey showed AI adoption accelerating sharply. The share of chambers reporting widespread use of the technology reached 32%, nearly tripling since 2024.

Optimism about its potential remains strong.

More than 93% of participating chambers expected the AI boom to continue, while around 90% believed it would improve productivity.

But enthusiasm for efficiency gains is accompanied by growing concern over jobs.

Around 40% of chambers expected AI to have a positive impact on employment. Yet half of respondents anticipated a decline in office-based jobs, compared with 32% who expected losses in manual occupations.

Chambers in emerging economies were generally more optimistic about AI's employment impact than those in advanced economies.

Those concerns are unfolding alongside an intensifying global contest for technological leadership.

The survey revealed a growing perception of China as the frontrunner in the AI race.

Half of participating chambers ranked China as the most advanced country in the field, compared with 38% that chose the United States — a view shared even by some respondents in North America.

Business

China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
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China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)

China and the United States held their first trade council meeting under a bilateral economic and trade consultation mechanism via ‌video link ‌on Friday, China's ‌commerce ⁠ministry said on ⁠Saturday.

The two sides held "candid, in-depth and constructive discussions" on implementing outcomes ⁠from previous trade consultations, ‌including ‌tariffs, a reciprocal ‌tariff-reduction arrangement involving $30 ‌billion on each side, agricultural trade and other issues of ‌note, the ministry said.

Both sides will ⁠continue ⁠to use the council to address trade concerns, expand cooperation and reduce outstanding issues, it added.

Business

IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
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IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)

The International Monetary Fund said on Friday that more work was needed to reach an agreement on restructuring Lebanon's banking sector, one of the steps towards unlocking billions of dollars in financial assistance.

An IMF staff-level agreement reached in April 2022 laid out conditions to unlock assistance, including a law on the distribution of losses in the banking sector, known as the financial gap law, which parliament has still not voted on.

In a statement at the end of meetings that began on Tuesday, the IMF said "there was progress in further clarifying the approaches under consideration by the Banque du Liban (BdL) and the Government regarding banking sector reform, the draft financial regulation law and the recovery of deposits, and aligning them with international standards".

It however noted that "further work is needed to reach an agreement on a strategy for an effective and durable restructuring of Lebanon's banking sector, leading to a sound and resilient system".

The cabinet submitted a draft of the law to parliament in 2025, but the text is contested by the banking sector and political parties, preventing a vote.

Differences over estimates of losses and their distribution have stalled negotiations with the IMF.

In 2022, the government estimated losses resulting from the 2019 financial crisis at around $70 billion, a figure believed to have increased over the last seven years during which the crisis has remained unresolved.

Lebanese Finance Minister Yassin Jaber said during a news conference that he hoped to "achieve progress that would allow us to reach an agreement on a program with the IMF and sign it during the first quarter of next year, and by its end at the latest".

Lebanon's economic crisis, which the World Bank has ranked among the worst since 1850, has deprived depositors of access to all of their funds, destroyed confidence in the banking sector and led to greater reliance on cash liquidity in various economic and commercial activities.