Economic Inequality Saudi Arabia Falls Short as a Host for FIFA World Cup 2034
Credit: Reuters/Susan Baaghil

As the world looks forward to the upcoming 2034 FIFA World Cup, Saudi Arabia has come into the limelight as a host nation. While the chance of hosting this kind of prestigious event also seems exciting, closer examination reveals huge concerns about it. This blog examines the reasons why Saudi Arabia will not be suitable for the FIFA World Cup, especially because of the unequal distribution of monetary benefits among extraordinary segments of society.

Economic Disparities in Saudi Arabia

Saudi Arabia is considered to have considerable oil wealth which has driven its economy to considerable heights. However, this wealth is not always evenly distributed among several people. A study analyzed socioeconomic indices across Saudi Governorates, highlighting that urban areas are generally more prosperous than rural ones. Approximately 11% of the Governorates are categorized as affluent, while an equal percentage is considered deprived.

Concentration of Wealth

Much of Saudi Arabia’s wealth is concentrated in the hands of a few people and families. The kingdom has an excessive Gini coefficient, a measure of income inequality, indicating that at the same time the country is prospering, many residents are no longer sharing in that prosperity. The attention of wealth so that the economic blessings of the World Cup web hosting can essentially favour the elite, leaving the majority of the population without much profit.

Saudi Arabia has a Gini coefficient of 45.6, reflecting a moderate to high level of income inequality, where 0 indicates perfect equality and 100 signifies perfect inequality. This score positions Saudi Arabia among nations with significant wealth disparities.

In terms of wealth distribution, about 47.8% of the adult population has wealth ranging from $10,000 to $100,000. In contrast, the wealthiest individuals hold substantially larger fortunes, highlighting the concentration of wealth at the top.

Limited Opportunities for the Workforce

Despite efforts to diversify the economic system through tasks such as Vision 2030, many Saudi citizens face limited job opportunities, specifically in sectors that would immediately benefit from the influx of vacationers and investment related to the FIFA World Cup. Many expats hold roles in hospitality and service providers, creating an environment where locals may not reap the rewards of web hosting a tournament.

Infrastructure Development vs. Local Needs

Hosting the World Cup requires a large investment in infrastructure along with stadiums, transport, and hotels. While this improvement may lead to the introduction of the task in a short period, the long-term blessings are questionable when the neighbourhood desires are considered.

Prioritizing the World Cup Over Local Needs

There is a danger that the resources allocated to the preparation of the World Cup will divert attention from solving pressing local problems along with health care, education, and housing. Saudi authorities may also prioritize building extravagant stadiums and facilities for the occasion instead of investing in social programs that appeal to the wider population.

Displacement and Gentrification

Infrastructure projects related to the World Cup regularly displace local communities and gentrify neighbourhoods. In Saudi Arabia, where land-use planning is already a contentious issue, there is a theme that web hosting the World Cup may worsen these challenging situations and in addition marginalize low-income residents.

Impact on Small Businesses

While the FIFA World Cup can boost surrounding economies, it is often difficult for small corporations to compete with the large groups that dominate the market. In Saudi Arabia, where a few conglomerates manage a huge amount of the economic system, neighbourhood traders may also struggle to enjoy the financial influx associated with the event.

Dominance of Large Corporations in the Market

Large groups often have the resources to maintain lucrative contracts and dominate the market during events such as the FIFA World Cup. As a result, small corporations may also experience little expected financial growth, leading to frustration and disillusionment among the surrounding entrepreneurs.

Limited Access to Opportunities

Many small groups in Saudi Arabia lack the necessary connections or capital to participate in the economic opportunities that come with hosting the World Cup. Without a pitch to the stage, the expected blessings will not trickle down to the base stage, similarly widening the money hole.

Social Inequality and Exclusion

In addition to economic disparities, hosting the FIFA World Cup in Saudi Arabia raises issues of social inequality and exclusion, particularly when it comes to gender and religious freedom. Non-communicable diseases (NCDs) are responsible for around 70% of all deaths in Saudi Arabia.

Gender Inequality

Saudi Arabia has made strides towards gender equality in recent years, but there are still huge gaps. Women in Saudi Arabia face restrictions in many aspects of their existence, including employment and social participation. Hosting an international event like the FIFA World Cup requires a welcoming environment for everyone, and the current social climate can also discourage capacity traffic and attendees.

Despite progress, approximately 30% of women in Saudi Arabia are still illiterate, primarily due to historical opposition to female education. Additionally, the gender pay gap remains significant, with women earning an average of only 45.77% of what men make for comparable work.

Exclusion of Minority Groups

The United States’ policies against religious minorities and expatriate communities raise other concerns. Hosting an international event requires inclusivity, but Saudi rectification of certain deals should result in a loss of visibility and participation in World Cup festivities.

Conclusion

While the prospect of hosting the 2034 FIFA World Cup in Saudi Arabia may seem enticing on the surface, the underlying financial differences present huge challenges. Without addressing wealth awareness, ensuring fair procedural opportunities, and prioritizing local needs, the benefits of tournament-hosting websites may not reach a wider population.

The FIFA World Cup must be a celebration that brings people from different backgrounds and cultures together. If Saudi Arabia needs to host this global event, it should first confront its financial differences and demonstrate a commitment to inclusiveness and social responsibility.

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