Qatar has unveiled new investment opportunities in ticketing services for sporting, cultural and entertainment events, as it builds up to hosting the World Athletics Championships and Fifa World Cup.
A study undertaken by the Ministry of Economy and Commerce (MEC) indicated that the ticketing sector in the Middle East country is expected to grow rapidly, from QR30m (£6.6m/€7.6m/$8.2m) in 2016 to QR62m in 2025, at a compounded annual growth rate of eight per cent. During the period Qatar will host major local and international sporting events such as the 2016 Road World Championship, the 2019 World Championships in Athletics and the 2022 Fifa World Cup. Qatar also stages a number of annual events such as Doha Diamond League, the Qatar ExxonMobil Open tennis tournament and the Moto GP World Championship.
The study, conducted by the Ministry in cooperation with the Ministry of Culture and Sports, the Supreme Committee for Delivery and Legacy, Qatar Olympic Committee, Aspire Zone Foundation, and Qatar Tourism Authority, is part of efforts to strengthen public-private partnerships and provide support for the sports sector.
The study noted that local companies “lack the ability to meet the requirements of hosting international events by focusing on less complex and attractive sectors (such as cinemas)”.
It said that the sports sector offers investment opportunities that allow new competitors in the market (both local and international) to provide additional services in various fields to differentiate themselves from the competition.
The study outlined the financial plan for investments in ticketing services, noting that investors can take advantage of this opportunity through the allocation of investments worth about QR31m. The net value of these investment is expected to increase to QR26m by 2025 at an internal rate of return of 19 per cent.
The study said local companies with limited financial capacity can invest as low as QR15m with a net present value of QR13m. When investing QR5m, the net present value rises to QR4m.