How the Middle East turned hard oil money into soft power

The world was taken by surprise on 2 December 2010 when FIFA announced Qatar as the host of the 2022 men’s football World Cup. Photo: Reuters

On 2 December 2010, the world was taken by surprise when former FIFA President Sepp Blatter announced Qatar as the host of the 2022 men's football World Cup. This decision to entrust the world's most prestigious football tournament to a tiny Gulf nation immediately triggered strong reactions from the football community, rival host nations and Qatar's political adversaries in the Middle East. 

The competition to host the event had been intense, marred by allegations of corruption and carrying significant political and economic ramifications. 

Consequently, what followed was a massive geopolitical showdown, with football emerging as a potent avenue for cultivating soft power, fostering diplomatic and geopolitical relations, and serving as a novel tool for nation-building.

Qatar isn't the first Gulf country to make substantial investments in sports. Dubai, one of the UAE's seven emirates, embarked on its journey of economic diversification in the 1970s. Even though oil constituted more than half of its GDP in the 1990s, Dubai realised the finite nature of oil reserves and began early preparations for a post-hydrocarbon era. The emirate shifted its economic focus to tourism, trade and banking. 

Dubai strategically branded itself as a luxurious haven favoured by celebrities for holidays and shopping sprees. It adorned its skyline with innovative architectural marvels, including the world's tallest skyscraper, the Burj Khalifa, and the largest shopping mall, the Dubai Mall.

To showcase its glamour to the world, Dubai also turned to sports. 

The emirate hosted the world's most expensive horse race, the Dubai World Cup, and welcomed prestigious events such as the PGA golf tour, featuring renowned figures like Tiger Woods, and the Dubai Tennis Championships, headlined by stars like Roger Federer and Rafael Nadal.

Dubai and its state-owned airline soon made their mark in European football. 

In 2004, Dubai secured naming rights for Arsenal's new stadium, The Emirates, marking a significant presence in English football. Emirates Airlines also became jersey sponsors for several major clubs, including Arsenal, Chelsea, Paris Saint-Germain, Real Madrid, Benfica and AC Milan.

Dubai then embarked on its next ambitious endeavour: bidding to acquire Liverpool FC, one of the world's most popular football clubs. This move was seen as the country's most potent advertising platform yet. However, the acquisition attempt faltered due to fierce competition from billionaires who recognised the global popularity of football and its lucrative television revenue. Nonetheless, Dubai had already established itself as a prominent player in sports marketing and soft power projection.

Abu Dhabi, the UAE's power hub, closely monitored Dubai's progress. When the global economic recession struck in 2008, affecting Dubai and other regions, Abu Dhabi stepped in with its substantial oil wealth. In August 2008, the Deputy Prime Minister of Abu Dhabi announced the acquisition of Manchester City Football Club. 

With this move, Abu Dhabi's state-owned airline, Etihad Airways, was prominently featured on the club's jerseys and billboards, and the stadium was renamed the Etihad Stadium. Abu Dhabi aimed to outshine Dubai in promoting itself as a glamorous place to live.

Qatar, too, followed a similar trajectory, hosting golf and tennis championships and investing significantly in its football league during the mid-2000s. In 2011, Qatar made a significant acquisition by purchasing Paris Saint-Germain (PSG), one of France's largest football clubs.

However, Qatar's ambitions extended beyond mere economic diversification and moved away from dependence on oil and gas revenue. For a nation with limited military power in a politically volatile region, the importance of soft power was paramount.

Qatar harnessed its soft power through a combination of factors, including its military alliance with the United States, the influence of its Al Jazeera news network in shaping the narrative of the Middle East, and substantial investments in sports and foreign aid initiatives. Qatar's soft power became particularly evident during political boycotts and economic embargoes launched against Doha between June 2017 and January 2021. 

Despite these challenges, Qatar managed to maintain its image as a progressive and Western-friendly nation, largely through the efforts of Al Jazeera and its investments in football. 

Through Al Jazeera, Qatar highlighted the political instability of its Middle Eastern rivals and their politically motivated embargoes, thereby shaping public opinion. In addition to drawing positive international attention, sports served as a distraction from ongoing claims of labour rights abuses in the country.

Qatar also devised a strategy to use football as a means to promote a national identity distinct from the stereotypical image of a Middle Eastern desert nation characterised by extreme heat, strict Islamic laws, and a questionable human rights record. Moreover, despite having a small population and stringent citizenship rules, Qatar aimed to take pride in becoming a competitive footballing nation.

Initially, Qatar attempted to fast-track the naturalisation of foreign players suited to their national team—a move that FIFA vehemently opposed. Subsequently, they adopted a long-term strategy by launching the ASPIRE Academy, which scouted underprivileged football talents globally, offering scholarships and training. Eventually, many of these talents were granted citizenship under newly reformed laws, making football an integral part of national policy.

Amidst all the controversies, Qatar found success. 

The national team secured victory in the 2019 AFC Asian Cup. Today, Qatar is the proud host to one of the most successful and widely watched football World Cups in history. In the process, it has not only rebranded itself on the global stage but also established a significant geopolitical foothold.

While Qatar has taken the spotlight, Saudi Arabia has emerged as the next major player in the global football economy. The country's investments in football have attracted star players like Cristiano Ronaldo, Karim Benzema and Neymar Jr., who have joined Saudi Pro League clubs. 

Saudi Arabia has allocated substantial funds from its Public Investment Fund (PIF) for sports-related endeavours since early 2021, including the purchase of English club Newcastle United for $391 million. 

Football is a pivotal element of Saudi Arabia's Vision 2030. It aims to diversify the economy, reduce dependence on oil revenue, and enhance its soft power, diverting attention from its conservative image and human rights concerns.

While the economic benefits of Middle Eastern countries' investments in football are evident, their potential impact on governance and

Politics remains uncertain. Critics argue that, despite increased global scrutiny of human rights issues, significant improvements in internal governance have yet to materialise. The term "sportswashing" has been coined to describe these efforts to overshadow rights concerns with the glamour of sports.

Football has transcended its role as mere entertainment to become a matter of state in the Middle East. It has evolved into a powerful tool for projecting soft power, fostering diplomatic relations, and influencing international perception. As countries in the region continue to invest heavily in the global phenomenon of football, its cultural significance and political implications will continue to evolve.

Rafsanul Hoque is a Senior Research Associate and Mustafizur Rahman Rahat is an intern at the BRAC Institute of Governance and Development (BIGD) at Brac University.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.