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Economic Impact of sport in

Dubai
$1.7billion+
TOTAL ANNUAL EXPENDITURE
RELATED TO SPORT IN DUBAI

$670m
TOTAL ECONOMIC IMPACT
OF SPORT IN DUBAI

B Economic Impact of sport in Dubai


Contents

Foreword 2

Executive Summary 4

Introduction 8

Section 1: EVENTS 12

Section 2: FACILITIES 18

Section 3: PEOPLE 22

Section 4: dubai’s broader sport industry 32

Section 5: city benchmarks 36

section 6: Dubai case studies 44


Golf, horseracing, racket sports, cricket and
Dubai as a hub for international sport

Section 7: Future Outlook and 58


opportunities for Dubai

Limitations 61

This Report has been written in general terms and therefore cannot be relied upon to cover specific
situations; application of the principles set out will depend upon the particular circumstances involved and
we recommend that you obtain professional advice before acting or refraining from action on any of the
contents of this publication. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any
person acting or refraining from actions as a result of any material in this Report. Further details covering the
scope and limitations of our Report, its use and our legal responsibilities are set out on page 61.

© 2015 Deloitte LLP

Economic Impact of sport in Dubai 1


Foreword

It is a pleasure to introduce Strategically located between East and


this report on the economic West, Dubai has a young, dynamic and
impact of sport in Dubai, multicultural population of nearly 200
prepared for Falcon and nationalities and welcomes more than
Associates by the Sports 10m visitors every year, with plans to
Business Group at Deloitte. welcome 20m by 2020. Testament to
the country’s strengths, the UAE has
Sport plays an important role in the been awarded the honour of hosting
growth and appeal of any global city. the World Expo 2020 in Dubai – a first
It is a driver of economic development for the wider Middle East, North Africa
and has a significant bearing on tourism, and South Asia (MENASA) region.
lifestyle, public health and ultimately, a
city’s international reputation. This event will represent a significant
milestone in the UAE’s incredible
Dubai has long recognised this reality journey, coinciding with the country’s
and has worked strategically for many golden jubilee. As Host City of the World
years to invest in its resources and Expo 2020, Dubai will further strengthen
capabilities across the sport sector. its infrastructure, facilities, skills and
Today, Dubai is home to world-class expertise, with a resulting positive
facilities and venues, hosting home- impact on the long-term opportunities
grown local, regional and international for sport.
events that welcome both elite athletes
and grass roots participation. We would like to thank everyone
involved for their time and for the spirit
Through the three core focus areas of of openness in contributing to this
Dubai’s Events, Facilities and People, report.
this comprehensive study tells the
story of sport in Dubai by quantifying Giselle Pettyfer
its economic contribution, forecasting CEO and Executive Vice Chairman
its impact in the years ahead and Falcon and Associates
identifying areas for potential growth.

2 Economic Impact of sport in Dubai


“a healthy body is
the source of human
happiness”
His Highness Sheikh Mohammed Bin Rashid Al Maktoum,
Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

Omega Dubai Desert Classic at Emirates Golf Club


Executive summary

Introduction Events The majority of event financing


comes from within Dubai due to the
This report quantifies the ‘gross Dubai hosts a wide range of sports origin of leading sponsors and Dubai
expenditure’ of sport in Dubai, i.e. the events – from major events on the world Government support.
economic ‘footprint’ of sport in the stage and regular elite-level domestic
emirate. This comprises all expenditure competitions through to a large number Attendance
related to sport in the emirate and the of smaller events encouraging grass It is estimated that over 1m spectators
‘ripple effect’ as this expenditure is roots participation. watch sports events in Dubai each year,
recycled through the economy (known with the highest individual attendance
as ‘indirect and induced impacts’). Dubai’s events have been divided into being over 100,000 at the Emirates
three broad ‘tiers’: Airline Dubai Rugby Sevens over three
We have also quantified the ‘total days. The Dubai World Cup is the best
economic impact’ of sport on the • major (major international annually attended single day of sport, attracting
economy of Dubai which measures recurring events); c.80,000 spectators each year.
the expenditure and associated ripple
effect that are additional to the Dubai • international (including leading Event sponsorship
economy because they originate from regional events); and Dubai has a well-developed sponsorship
outside the emirate (e.g. sports related market. All the major international events
spending by visitors to Dubai). • LOCAL (other Dubai events). held in Dubai each year benefit from
sponsorship from globally recognised
The stakeholders involved in Dubai’s When the economic impact of Dubai’s brands, both Dubai-based and overseas.
sporting landscape are wide ranging, events is analysed, the majority Sponsorship spend for sports events in
from government bodies and agencies ($407m, 57%) of the gross expenditure Dubai is c.$100m p.a., with around 70%
through to multiple sport-specific is estimated to come from the seven of this attributable to the seven major
suppliers. The economic impact of major annual events Dubai hosts events held in the emirate.
sport in Dubai has been split into (see table below), with $250m (35%)
three components: Events, Facilities attributable to the 46 international Event media and broadcast
and People. The respective gross events and the remaining $52m (7%) to The television and media (including
expenditure and direct economic impact local events. social media) coverage associated
of these three components, together with hosting sports events generates
with the indirect and induced estimates, Major events substantial exposure and awareness for
are as follows: Dubai, providing a platform to showcase
• Omega Dubai Desert Classic itself to international visitors and promote
Gross Economic • Standard Chartered Dubai Marathon itself as a leading destination for tourism.
expenditure impact • Dubai Tour
$m $m • Dubai Duty Free Tennis Championships Other observations
• Dubai World Cup Dubai’s sporting calendar, and that
The following approach has Events 709 359 • DP World Tour Championship of the UAE as a whole, is particularly
been taken to avoid double
counting: Facilities 255 54 • Emirates Airline Dubai Rugby Sevens busy through the core event season
Events = all events taking place
in Dubai;
People 172 8 (October-April), due to summer
Facilities = all non-event use of Indirect & induced 627 249 temperatures and the organic way in
elite/high-level facilities;
People = participation In terms of direct economic impact, which the event calendar has developed
excluding events already
covered and use of elite/high-
TOTAL 1,763 670 over 90% is estimated to come from the over the last 30 years. This congested
level facilities. seven major events with the remainder period is a challenge for established and
from the international tier. for new events alike.

4 Economic Impact of sport in Dubai


Facilities

Dubai has developed a set of high


quality sports venues, which are
capable of hosting a wide range of
activities from elite sporting events to
grass roots recreational activities. This
section of the report concentrates
on those capable of hosting elite and
high-level regional sport. Grass roots
recreational facilities are included in the
People section.

Key sporting facilities from an economic


perspective include:
2010 FINA Short Course World Swimming Championships at the Hamdan Sports Complex
• Golf courses;
Among Dubai’s sports stakeholders it is Economic impact terms explained
• Dubai Duty Free Tennis Stadium; felt that the emirate’s sporting offering
would benefit greatly from the addition Gross expenditure = the total spend
• Meydan Racecourse; of a purpose built indoor 10-15,000 on sport in Dubai, regardless of source.
capacity multi-purpose arena (despite
• The Sevens Stadium a c.5,000 seat arena being constructed Direct economic impact = “new
at the Nad Al Sheba complex) and a money”; the additional expenditure
• Dubai Sports City; and permanent 30,000+ capacity outdoor in the Dubai economy from external
stadium, the latter of which may be sources that is directly related to sport.
• The Hamdan Sports Complex. addressed by the UAE’s hosting of the
2019 Asian Cup in football. Indirect and induced impacts
The direct economic impact (additionality) (collectively the ‘ripple effect’):
attributable to facilities is significantly less Indirect = business-to-business
than that attributable to events, as to People expenditure of suppliers related
prevent double counting this constitutes to sport, e.g. companies in Dubai’s
the economic impact arising only from Dubai has a youthful and cosmopolitan sport industry using other Dubai based
the non-event use of the facilities. population of nearly 200 nationalities. businesses as suppliers.
This presents a significant opportunity for
Of the c.$54m direct economic impact growth in sport in Dubai, both in terms Induced = additional expenditure from
due to non-event use of facilities, the of event attendance and participation. consumer spending, e.g. individuals
majority comes from Dubai’s 11 golf working in the sport industry spending
courses and the expenditure of the Dubai’s macroeconomic conditions their wages in Dubai’s shops and
overseas visitors that use these facilities. also bode well for sport. A strong restaurants.
The next largest source is from the use sporting culture is a key selling point to
of facilities as warm weather training attract and retain talent in the emirate, Total economic impact = direct and
or competition venues during the helping to enhance the quality of life indirect and induced impact.
European winter, which is an area of both in terms of participation and as a
considerable growth potential. spectator activity.

Economic Impact of sport in Dubai 5


executive summary

Employment Tourism Economic contribution


Dubai’s sport industry supports Tourism forms a central part of Dubai’s Sport participation, both by residents
significant levels of employment. economic growth and diversification. and tourists, and other economic
We estimate that c.14,500 full-time Sport tourism is expected to play elements not captured under events
equivalents are employed in the a key role in this regard. or facilities, are estimated to have
core sport industry, 0.6% of the total contributed $172m to Dubai’s
workforce. This places Dubai favourably Events form a key part of the sport economy, with c.$8m of additionality
when compared to a number of tourism landscape. However, inbound from overseas visitors participating in
European countries, demonstrating tourists also travel for other purposes sport using publicly available/community
that sport is well engrained within the such as to visit sporting attractions, facilities (participation at elite facilities
economy. attend sport conferences and has already been accounted for in the
exhibitions and participate in sporting Facilities section).
mass participation activities.
Sport participation
Sport participation is an important Dubai’s golf stakeholders have for many
component in the lives of a significant years positioned the emirate as one
number of Dubai residents. The biggest of the leading destinations worldwide
mass participation event in Dubai is the for golf tourists. Other sports popular
Standard Chartered Dubai Marathon. amongst tourists include watersports,
In 2015, over 25,000 runners and, increasingly, extreme sports.
participated with significant numbers
also taking part in similar events such
as the Color Run, the Electric Run and
$670m
Total economic impact of
We Run Dubai. sport in Dubai (expenditure from
non-Dubai sources
In total, we estimate that mass plus ‘ripple effect’)
participation events attract over 85,000
participants each year in Dubai.

Those events attracting overseas


competitors will also contribute to the
direct economic impact of sport in the
$421m
Direct economic impact of
emirate, to a sum in excess of $10m p.a. sport in Dubai (expenditure
from non-Dubai sources)
Dubai contains a diverse range of
facilities available to participants
regardless of their level of ability. Recent
notable additions to public facilities have
been the cycle paths at Nad Al Sheba
and Al Qudra, both of which provide
high quality, traffic-free facilities and are
85,000+
Mass participation
due to be extended further in 2015. event participants
These paths, together with events,
have helped increase participation and
boosted the cycling ‘boom’ that has
taken place in the emirate over the
past decade.

400+
Gyms in Dubai

6 Economic Impact of sport in Dubai


The broader sport industry Supply chain organisations (such as
catering, construction, maintenance
The Government plays a vital role in and legal) also play a key role in sport’s
supporting and developing sport in economic contribution to the emirate.
the UAE and Dubai through its policies
and funding, with Dubai Sports Council Dubai-based companies such as
(“DSC”) taking the lead for sport in Emirates Airline, Dubai Duty Free and
Dubai. DP World are very significant players in
the global sports sponsorship industry,
There are over 30 sport federations and with Dubai a city synonymous with sport
governing bodies with a permanent as a result.
base in Dubai.

Shuttle Time Dubai

$1.7 billion+
city benchmarks

Dubai has been compared with a


Total expenditure p.a. related selection of international competitors
to sport in Dubai by examining the quality and quantity
of events hosted and facilities. Dubai
performs well in terms of regular annual
events, thanks largely to its global series

c.14,500
Core industry employment
of events in golf, rugby and tennis.

Dubai has a relatively small number


of venues compared with the other
benchmark cities. However, the close
proximity of Dubai’s venues to each
other, the ease of access to/from all

1m+
Aggregate attendance
areas of the city and its excellent airport
and accommodation offerings afford
Dubai a significant advantage.
at sports events p.a.

300+
Regular annual
events

$13m+
Expenditure on sports
equipment p.a.

Economic Impact of sport in Dubai 7


Introduction

Falcon and Associates • The data included in this report Report structure
(“Falcon”), the strategic has been gathered through a The report has been structured around
advisory company working on combination of: three key ‘pillars’:
behalf of the Dubai leadership,
commissioned the Sports - extensive consultations with 1. Events – a comprehensive overview
Business Group at Deloitte to stakeholders in sport in Dubai. across sporting events taking place
provide an in-depth quantitative A full listing of those organisations/ in Dubai, from elite, global events
and qualitative analysis of the individuals is included on page 61; through to mass participation events
contribution of sport to Dubai. enjoyed by the general public.
- data supplied directly by these
Sport is an intrinsic part of the fabric of individuals/organisations; and 2. Facilities – discusses the sports
Dubai, entwined within its image, place facilities of Dubai and their role in
and identity. However, to date there has - additional research and analysis the sport industry of the emirate,
been no consolidated analysis of the performed by Deloitte. including elite venues capable of
economic scale and worth of sport to hosting international sporting events
Dubai. This report aims to rectify this. • The study focuses on the most and those hosting professional
recent data wherever possible, domestic sport. (NB – grass roots/
so 2014 has been used as the community facilities are included in
Methodology last full year. However, in some the People section due to their close
A detailed methodology, assumptions circumstances prior years have been links to participation).
and limitations are set out on page 61, used where more up-to-date data
but the key points are as follows: was not available. 3. People – an overview of sports
participation in Dubai, with reference
• The report quantifies the economic • Some of the data in this report is in to the emirate’s population,
contribution of sport in terms of current (or nominal) prices. Current demographics and sports tourism.
both direct impacts (from sectors prices are the prices at the time of
directly related to sport) and indirect reporting and do not include any A number of case studies have also
impacts (from other sectors that rely adjustments for the effects been included to examine particular
on sport to a certain extent e.g. in of inflation. events, facilities or participation aspects
the supply chain). It also assesses in more detail.
the current sporting landscape in
the emirate, assessing the progress We then consider the broader sport
achieved in bringing Dubai up to industry and provide benchmarks to
its current standing together with other leading sporting cities in terms of
recommendations to take forward events staged and event management,
and improve its offering further. organisation and strategy so that
Dubai’s current standing can be gauged
on a global scale.

The report concludes with a section


on Future outlook and opportunities
identified to enhance sport in Dubai.

8 Economic Impact of sport in Dubai


ECONOMIC IMPACT
ECONOMIC IMPACT MEASURES
Introduction
This report quantifies the economic
impact of sport on the economy of
Dubai. The total economic impact
Direct economic Indirect and Gross
comprises two elements: direct
impact induced impacts expenditure
economic impact, and indirect and
induced economic impact.

In addition to this, we have included a


high-level estimate of gross expenditure Indirect and induced economic Gross expenditure
attributable to sport (i.e. expenditure in impact The gross expenditure of sport has
the Dubai economy that would likely not Indirect and induced economic impact also been estimated based on our
have occurred if sport was not present quantifies the “ripple effect” as this discussions with stakeholders in sport
in the emirate). direct expenditure is recycled through in Dubai. This represents the total
the economy via business-to-business spend on sport in Dubai, i.e. the total
and consumer spending, as described ‘pot’ of money circulating around
Direct economic impact further on page 34. Our estimates are Dubai’s economy due to sport, whether
Direct economic impact measures the based on economic impact multipliers internally or externally sourced.
additional expenditure generated in calculated specifically for the Dubai
the Dubai economy by visitors to that economy which are detailed in the
host economy (e.g. the investment of Limitations on page 61. Employment
international sponsors in Dubai or the In addition the number of Full-Time
expenditure of individuals from abroad). Equivalent (“FTE”) individuals working in
the sport industry has been estimated,
We do not include expenditure by incorporating full-time, part-time and
Dubai residents, businesses or temporary workers at organisations in
organisations on the basis that this the industry. A significant number of
represents “deadweight” expenditure temporary roles exist due to the large
– i.e. economic activity that would number of events taking place in Dubai.
have occurred regardless of sport
taking place.

This is consistent with widely accepted


economic impact measurement
methodology and with previous
economic impact studies that we have
conducted.

Economic Impact of sport in Dubai 9


Introduction

THE SPORT INDUSTRY IN DUBAI • Core industry – those organisations The following entities are considered
that work only in sport, i.e. if there part of the core sport industry:
The economic impact of sport in was no sport industry in Dubai these
Dubai has been estimated based on organisations would not exist. UAE and Dubai governance – those
the direct expenditure of its participants organisations part of, or working on
and consumers. The stakeholders • Ancillary industry – those behalf of, the Dubai or UAE leadership
involved in Dubai’s sporting landscape organisations which, whilst working in relation to sport. Whilst sport may be
are wide ranging, from government in the sport industry, are not 100% only part of the remit of these entities
bodies and agencies through to reliant on it. they have been included as part of the
multiple sport-specific suppliers. For core industry due to their importance to
ease of analysis they have been divided • Supply chain – industries which the development of sport in the emirate.
into core and ancillary industries and supply the sports sector with goods
the supply chain. and services.

Dubai governance
· Dubai Sports Council
UAE governance
· General Authority of Youth
International sports
and Sports Welfare
governance
· UAE NOC
· International Federations
· National Federations

Sport facilities Sport facilities


– elite – participation
· Sport stadia · Private clubs
· Golf clubs Core sport · Public facilities

industry in
Dubai
Sport/event Events
management · Elite/international
companies · Professional leagues/
· Marketing and championships
Media · Amateur/mass
· Legal and participation
professional

Sport-specific suppliers
· Equipment and clothing (retail)

10 Economic Impact of sport in Dubai


International sports governance –
international federations (“IFs”) that are
located in Dubai, the main IF being the
International Cricket Council (“ICC”).
Health and fitness Education
· Gyms and · Schools
Sport facilities – elite – facilities
private clubs · Higher/further
capable of being used for elite, world-
· Hotel/resort education class sporting events.
facilities · Academies
Sport facilities – participation
Ancillary sport – a significantly broader category
encompassing sport facilities accessible
industries by the general public.

(work in other industries Sport/event management


in addition to sport) companies – a smaller component
of entities specifically providing event
Government entities Conferences/ management, marketing, media, legal
· DSC funding for exhibitions or professional expertise to sporting
facilities/infrastructure, events/facilities.
participation etc.
· Road Traffic Authority (“RTA”) Events – encompassing all sporting
for transport, construction, events staged in Dubai, from major
advertising and road events events through to the numerous mass
participation events that take place in
the emirate.

Sport-specific suppliers – those


business suppliers that rely exclusively
Construction/ on supplying the sport industry, e.g.
management companies golf-specific suppliers, manufacturers/
retailers of sporting apparel.

The ancillary and supplier industries

Supply indicated in the diagram will still have


a major economic impact on sport in

chain Dubai, but their existence is not reliant


on sport in the emirate.
(industries which supply
the sports sector with See page 61 for further details of our
goods and services) methodology.

Suppliers to sport and other industries


· Other products/services
e.g. food and beverage

Economic Impact of sport in Dubai 11


Section 1

Events

Dubai hosts a wide range of


sports events – from major
events on the world stage and
regular elite-level domestic
competitions through to a
large number of smaller events
encouraging grass roots
participation.

Major international events help to raise


the profile of the emirate and are a
key driver of tourism and associated
economic impact. In addition they
encourage interest and participation
at a local level, which is where smaller, Dubai Tour
locally organised events play a vital role.
Figure 1: Number of sports events by calendar month (2015)
Several of these events have taken
place for a considerable length of time, Omega Dubai Desert Classic

and as such are an important part of Dubai Duty Free Tennis


61
Emirates Airline Dubai
Championships Rugby Sevens
Dubai’s sporting heritage. For example,
JAN
the Emirates Airline Dubai Rugby Sevens
47 46
has been taking place since 1969 and 40 MAR 39 NOV
has featured in the World Rugby Sevens FEB APR 30
Series for 16 consecutive years. OCT 22
14 12 16 DEC
JUN 4 8
This section describes Dubai’s events MAY SEP
by dividing them into three broad ‘tiers’ JUL AUG
before detailing their economic impact,
including a discussion of the number of
spectators, the sponsorship market and
event media and broadcast. Dubai
Tour Dubai World Cup DP World Tour
Championship
Dubai has also held a number of
Standard Chartered
‘one-off’ events, such as the 2010 FINA Dubai Marathon
Short Course World Swimming Notes:
Championships, the 2013 FIFA U17 been accounted for in the Methodology 1. For events which span
more than one month, the
World Cup, a number of Indian Premier and included in the ‘International’ tier. month in which the event
starts has been used for
League (“IPL”) cricket matches and the the purposes of the above.
Dubai Football Challenge between Real Figure 1 illustrates Dubai’s seasonal
2. All events taken from Dubai
Madrid and AC Milan in 2014, the 2015 calendar of events, with very few Sports Council Events
Guide 2015-2018.
Men’s U23 Volleyball World events held in the summer months. A
Championship, and in 2019 will be a host description of the three event tiers and 3. Domestic sports leagues
(e.g. cricket, football, rugby)
city for the AFC Asian Cup. Although the number of individual events in each have been excluded.

these events vary each year, they have tier is outlined in Figure 2. Source: Dubai Sports Council.

12 Economic Impact of sport in Dubai


Figure 2: Sports events in Dubai split by tier

Tier Number of individual events Description

Major
Major international
annually recurring
7
including:
• Omega Dubai Desert Classic
• Standard Chartered Dubai
Marathon



Dubai Tour
Dubai World Cup
DP World Tour Championship
Globally recognised annual events that
regularly attract significant numbers of
overseas visitors travelling specifically
events • Dubai Duty Free Tennis • Emirates Airline Dubai Rugby for the event.
Championships Sevens

INTERNATIONAL
Including leading
regional events
46
including:
• ITTF World Tour Grand Finals
• BWF Dubai World Superseries Finals
• Arabian Gulf League Football
• Samsung Beach Soccer
Intercontinental Cup
• World Championships
Events that are international in focus,
and/or recognised throughout the
UAE and wider GCC region. They may
• Dubai International Triathlon of Beach Ultimate include international competitors and
• XCAT World Series Powerboating • FINA Swimming and Diving attract some overseas visitors travelling
• Beach Polo Cup World Cups for the event.

LOCAL
Other Dubai events 90+
including:
• Local fun runs and community events
e.g. Furjan district tournament, Nad Al Sheba Sports Tournament,
Spinneys 92 Cycle Challenge Dubai
Local, smaller scale events, usually
recreational activities with no
international competitors or overseas
visitors.

CONFERENCES including: • Dubai International Sports • FIH Congress 2016 Global sport conferences and
AND EXHIBITIONS Conference • ITF AGM 2014 exhibitions taking place annually
• Host Cities • SportAccord 2010 in Dubai.
• Middle East Sports Event Summit

Note: Repeat/serial events have been grouped together hence total number of events differs from Figure 1.

Economic impact staging of the event. This typically Figure 3: Event stakeholders and typical contributions
Two measures of the economic impact includes transport, accommodation towards direct economic impact (%)
of Dubai’s sports events have been and subsistence costs of overseas Non-local
estimated: visitors, competitors and so forth. 5 spectators
6 Event management
1. Gross expenditure – the total The following chart (Figure 3), whilst 2 and infrastructure
economic footprint of the events. not specific to Dubai, demonstrates the
Teams/participants
This represents the expenditure stakeholders involved in staging major 17
within Dubai’s economy due to the international events and their typical Sponsors

staging of the events regardless of contributions to economic impact, i.e. Media


the origin of the expenditure. the expenditure generated by the events
from external sources. 70 Note: Percentages taken are
averages from a number of
2. Direct economic impact – the economic impact studies

additional expenditure entering Dubai performed by Deloitte.

from outside the emirate due to the Source: Deloitte analysis.

Economic Impact of sport in Dubai 13


Section 1: EVENTS

Figure 4: Typical event economic Figure 5: Estimated economic impact of Dubai’s events ($m)
impact profile
Event tier Gross expenditure Direct economic impact
(total expenditure associated with (expenditure from
Largest

events, regardless of source) non-Dubai sources)

MAJOR 407 325


MAJOR

INTERNATIONAL 250 34
INTERNATIONAL

LOCAL 52 0
Gross expenditure

TOTAL 709 359

Source: Dubai Sports Council Event Guide 2015; The Dubai Calendar; Deloitte analysis.
LOCAL
Smallest

Figure 6: Direct economic impact of a selection of international


Largest Smallest sporting events ($m)
Scale of events
250

232
200 213
The typical profile of the economic

World Triathlon Grand Final 2013


impact of events held in a territory with

FIBA World Cup


183

NFL International Series


London Marathon
a well-developed sport industry and
2014 (Spain)
150

seven major events


Average of Dubai’s

2013 (London, UK)


infrastructure is likely to resemble the
World Equestrian Games

136
ATP World Tour Masters

2010 (UK)
curve in Figure 4.
2010 (Kentucky, USA)

RideLondon 2013
NFL Superbowl 2013

Tour de France 2014


(New Orleans, USA)

100
2012 (Miami, USA)

UK & Ireland France Spain

(London, UK)

(London, UK)
89
(Yorkshire, UK

A small number of the major events 72


will provide the majority of economic 50
46 40
impact, with a smaller portion provided
by the international events and the ‘tail’ 16 9
0
of local events providing a decreasing
amount.

When the economic impact of Dubai’s When compared with a selection of Notes:
1. Figures relate to direct
events is analysed a similar profile sporting events held elsewhere in the economic impact only.

emerges. As shown at Figure 5, the world, Dubai’s top events are on an Where direct economic
impact figures have
majority ($407m, 57%) of the gross equal footing with a number of those not been available we
have deflated the overall
expenditure is estimated to come from held in leading event cities such as economic impact by 25%.

the seven major events Dubai hosts, London (see Figure 6). 2. Studies may employ
with $250m (35%) attributable to the 46 different methodologies to
calculate economic impact.
international events and the remaining This highlights the importance of
3. Figures related to the direct
$52m (7%) to local events. In terms of these major events to Dubai from an economic impact of events

direct economic impact, i.e. expenditure economic perspective and reinforces on a host city, region or
country.
in Dubai originating in other territories, the perception that it is leading events
4. All figures presented at
then over 90% is estimated to come such as these that make a discernible prevailing prices at the
time of the study/event.
from the seven major events with the difference, both in terms of their Original amounts in Euros
remainder from the international tier economic footprint and their role in converted to USD based
on exchange rate at 20th
(local events are assumed to have attracting overseas investment to the March 2015.

negligible international visitors travelling emirate. 5. FIBA World Cup 2014

specifically for the event). (Spain) relates to non-local


spectator expenditure only.

250 Source: Deloitte analysis.

200

150

100

14 Economic Impact of sport in Dubai 50


0
Attendance Figure 8: Title/main sponsors of Dubai’s major events
Spectators drive a significant contribution
of the gross expenditure at an event. It is Event Sport Title/main sponsor Sponsor origin
estimated that over 1m spectators watch
sports events in Dubai each year, with Dubai Desert Classic Golf Omega Switzerland
the Emirates Airline Dubai Rugby Dubai Marathon Athletics Standard Chartered UK
Sevens alone attracting over 100,000 Dubai Tour Cycling Commercial Bank of Dubai Dubai
attendees over the three days of Tennis Championships Tennis Dubai Duty Free and J.P. Morgan Dubai and USA
competition and the Dubai World Cup Dubai World Cup Horseracing Nine partners including Emirates Airline, Various
around 80,000 spectators. Longines and DP World
Tour Championship Golf DP World Dubai
Whilst major events are responsible for Dubai Rugby Sevens Rugby Emirates Airline Dubai
a significant proportion of spectators,
due to the large number of individual
events the aggregate attendance for
international events exceeds that of the Excluding competitions taking place
major events. over extended periods of time such
as the matches of Dubai’s four (as of
The estimated split of total number of 2014/15) UAE Arabian Gulf League
attendees at Dubai’s sporting events by football clubs, the three best attended
event tier is as follows: sports events in Dubai are the Dubai
Duty Free Tennis Championships,
Figure 7: Attendance at Dubai the Emirates Airline Dubai Rugby
sporting events (’000s) Sevens and the Dubai World Cup
which between them attract well over
250,000 spectators. The DP World
Tour Championship also attracts over
50,000 attendees.
9
(1%) 393
(39%) Whilst full data on the origins of
Total: 1,006 spectators is not currently available for
leading Dubai events, consultations Emirates Airline Dubai Rugby Sevens at the Sevens Stadium
604
(60%) with stakeholders reveal that the most
significant numbers travel to Dubai for
the major events, with smaller numbers Event sponsorship
for those in the international tier. This Due to its global reputation as an
mirrors the direct economic impact of effective place to do business and
events discussed previously, with over also as a host of major sporting
Major International Local
90% coming from the spending of events, Dubai has a well-developed
Source: Deloitte analysis. international visitors to major events. sponsorship market. All the major
international events held in Dubai each
This reinforces the importance of having year benefit from sponsorship from
For many of the mass participation a coherent events strategy, agreed by globally recognised brands, both Dubai-
events held in Dubai the number all major stakeholders, to help drive based and overseas (see Figure 8).
of participants will greatly exceed increased levels of economic impact at
spectators. Total participants in such events in future. In terms of the gross expenditure,
mass participation events is estimated i.e. spending in Dubai’s economy
to be c.64,000, with the Standard directly attributable to sporting events,
Chartered Dubai Marathon alone sponsorship spend is c.$100m p.a., with
numbering around 25,000 runners in around 70% of this attributable to the
its three race distances (Marathon, seven major events listed in Figure 8.
10km and 3km). Sports participation is
discussed further in the People section. However, due to a significant proportion
of sponsorship arising from Dubai

Economic Impact of sport in Dubai 15


Section 1: EVENTS

Dubai World Cup at Meydan

entities, the direct economic impact of Figure 9: Media coverage of a selection of Dubai’s events
sport event sponsorship will be notably
less than this. Only sponsorship from Event Media coverage
non-Dubai based organisations can be
included as having a direct economic Dubai Duty • 120 international broadcasters
impact (e.g. Omega, Standard Free Tennis • Men’s event broadcast for 3,437 hours across 63 countries
Chartered, J.P. Morgan). Championships • Women’s for 2,564 hours across 51 countries
• Global television audience of 400m
The majority of event financing therefore • Over 400k unique visitors to the tournament website
comes from within Dubai due to the
origin of leading sponsors. An increased Dubai Tour • Broadcast to 111 countries on five continents
level of sponsorship from non-Dubai • 1,793 online articles posted on 629 digital media networks
entities would be necessary for events for 2015
to increase their direct impact on
Dubai’s economy. DP World Tour • Broadcast live on television for 1,220 hours across
Championship 51 broadcasters
Major and international sporting • Global audience reach of 458m households
events currently represent a net flow
of expenditure out of Dubai (mainly Emirates Airline • The most televised HSBC World Rugby Sevens Series
via prize money), albeit balanced with Dubai Rugby tournament in history
advertising exposure for Dubai. The Sevens • 593 hours of television coverage across 359m households
only sources of funding from outside in 145 countries
of the emirate will be from non-Dubai
sponsors and overseas visitors. BWF Dubai World • Over 1,600 global broadcast hours
Superseries • $25m in television coverage media value for the Dubai brand
Finals • 96% attributable to the East and South East Asian markets

Source: Event media reports.

16 Economic Impact of sport in Dubai


Event media and broadcast Figure 10: Social media profiles of major Dubai sporting events (‘000s)
The television and media coverage
associated with hosting major 40 38 Facebook likes
35
international events generates 33
Twitter followers
substantial exposure and awareness 30
for Dubai, providing a platform to
showcase itself to international visitors
20
and promote itself as a leading
destination for tourism. 12
10 10 9
10 7 6
Furthermore, Dubai’s connectivity with 3 3
2
the rest of the world as discussed in the
0
case study on page 56 provides access Dubai Tour Emirates Airline Dubai Dubai Duty Dubai World DP World Tour Omega Dubai
to audiences on a vast scale. Around Rugby Sevens Free Tennis Cup Championships Desert Classic

2.2 billion people across Asia, Europe


and Africa live in the four time zones • The 2015 Fazza IPC Athletics • Employment opportunities (see Note: Standard Chartered
Dubai Marathon has no
either side of Dubai, making it ideally Championships, which served as People section); and Facebook page or Twitter

situated to capture a global television a qualifier for the 2015 IPC World profile.

audience. Championships and 2016 Paralympic • Social benefits such as increased Source: Deloitte analysis
(Data correct as at 18th March
Games, attended by 490 athletes national pride and unity. 2015).

Media coverage of a selection of events from 48 countries; and


is provided in Figure 9. TV coverage Conclusion
of Dubai’s leading events regularly • The 2016 IPC Athletics Asia-Oceania Dubai is well represented by
generates up to $0.5 billion of gross Championships, expected to international events, with the seven
advertising media value per event. attract around 600 athletes from 45 major events complemented by more
countries. recent additions such as badminton’s
Dubai’s sporting events are also well BWF Dubai World Superseries Finals,
covered by the domestic media and cycling’s Dubai Tour and the Dubai
sport specific publications e.g. the Additional impacts International Triathlon. In a number
Sport360 newspaper. In addition to the economic benefits of sports Dubai is also now host to
associated with hosting a sport event the end-of-season “finale” e.g. golf,
Dubai’s major events are also well outlined above, there are a number of badminton and squash.
represented on social media, with other potential advantages including:
the respective Twitter followers and The brand and appeal of Dubai as a
Facebook likes shown in Figure 10. • Enhancement of the city’s image and destination is of great importance to the
brand on the world stage; success of these events. Sport can look
to leverage the trading relationships
Parasport events • Greater likelihood of attracting future with territories including the GCC and
Dubai is increasingly associated with events; wider MENASA region, China and India
hosting leading parasport events, with as a result.
Dubai Sports Council playing a key • Improvement in infrastructure and
role in this regard. The Dubai Club for facilities (see Facilities section); As shown in Figure 1, Dubai’s sporting
the Disabled plays host to the majority calendar, and that of the UAE as a whole,
of such events, and in the 2014/15 • Increased levels of engagement is particularly busy through the core
season hosted a number of leading with sport by local residents, with event season (October-April) due to the
competitions. Notable parasport events potential for associated health and organic way in which it has developed
in Dubai include: fitness benefits (see People section); over the last 30 years, which can prove
a challenge for new events to become
• The 2014 IPC Powerlifting World • Greater likelihood of developing established and for existing events to
Championships, attended by 400 future sports stars (see Emirati talent thrive. This topic and possible solutions
athletes from 62 countries; case study); to improving the current situation are
discussed in more detail in the Future
• Increased levels of tourism (see outlook and opportunities section.
People section);

Economic Impact of sport in Dubai 17


Section 2

Facilities

Figure 11: Overview of a selection of Dubai’s elite venues

Venue Dubai Autodrome Dubai International Dubai Polo & Dubai Roads
Marine Club & Equestrian Club
Dubai Offshore
Sailing Club

Sports Motorsport Sailing, other Polo, Dressage, Cycling, Marathon,


hosted Watersports Show Jumping Triathlon

Dubai Autodrome

Dubai has developed a set of Main events 24 Hour Race in Traditional sailing Dubai Polo Gold Dubai Tour,
high quality sports venues, hosted Dubai, Color Run and dhow events Cup Series, Standard Chartered
which are capable of hosting British Polo Day Dubai Marathon,
a wide range of activities from Dubai Dubai International
Triathlon
elite sporting events to grass
roots recreational activities.
In 2011, a feasibility study into
Dubai’s capability for hosting
the Olympic Games concluded
that 70% of the “hard”
infrastructure was already
planned or in place.
Spectator 15,000 n/a n/a n/a
capacity
For the purposes of this section,
facilities are defined as those venues
capable of hosting elite and high-level
regional sport. The economic impact Other • The UAE’s first • Together provide • Offers polo and • Dubai’s largest
of facilities for the use by the general information multi-purpose Dubai’s main show-jumping mass participation
motorsport and sailing facilities alongside desert event, the Standard
public for recreational purposes is
  entertainment alongside various horse riding Chartered Dubai
detailed in the People section.
facility including: other watersports • Includes club with Marathon, is held
- FIA sanctioned extensive on Dubai’s roads
Many of Dubai’s sporting facilities are in circuit restaurant and with over 25,000
close proximity to each other which, - Race school leisure facilities runners and tens
coupled with the support of the - Indoor and of thousands of
emirate’s excellent infrastructure and outdoor karting spectators
tracks • The Dubai Tour,
efficient transport links, provides ease of
- VIP hospitality area totalling 660km in
access and travel between venues.
- Entertainment 2015, is also held
facilities annually
An overview of a selection of Dubai’s elite • Also hosts road
venues is provided here in Figure 11. cycling

18 Economic Impact of sport in Dubai


Dubai Sports City Dubai Tennis Dubai World Trade Golf courses Hamdan Sports Meydan The Sevens
Stadium Centre Complex Racecourse Stadium

Cricket, Football, Tennis Football, Rugby, Golf Aquatics (Swimming, Horseracing, Rugby, Football,
Golf, Rugby, Badminton, Table Diving, Water Polo, Golf, Tennis Cricket, Gaelic
Swimming, Athletics, Tennis, Tennis, Synchronised Football, Netball,
Tennis, American Basketball, Boxing, Swimming) plus Basketball, Aussie
Football Mixed Martial Arts, other sports, e.g. Rules, Tennis,
Body building, Badminton, American Football
Volleyball and Basketball, Karate,
Gymnastics Tennis, Volleyball

International cricket Dubai Duty Free UFC, Glory World DP World Tour FINA World Swimming Dubai World Cup Emirates Airline
– IPL and Pakistan Tennis Series Kickboxing Championship, Championships Carnival Dubai Rugby
national team (Dubai Championships Omega Dubai Desert (2010); FINA Diving Sevens,
International Classic, Omega World Series Dubai Football
Stadium) Dubai Ladies (2012-2015); Challenge
Masters, Challenge Badminton World (AC Milan v Real
Tour Final Superseries Finals Madrid in 2014)
2014; IPTL Tennis;
FIBA U17 World
Championships 2014;
Asian Volleyball
Championships 2013

25,000 (Dubai 5,000 Up to 10,000 n/a 15,000 Grandstand 50,000


International depending on arena 60,000
Stadium); 3,000
(Rugby Stadium)

• Other planned • Aside from DDF • The region’s • 11 golf courses in • Olympic-standard • Five-star hotel • Venue contains
venues include a tournament is largest facility for Dubai at nine golf swimming and • Conference centre 12 pitches
60,000 capacity used mainly by conferences, clubs diving pools with • Restaurants • Hosts Arsenal
stadium and a coaching exhibitions and • See Golf case seating capacity of • IMAX theatre Soccer School
10,000 capacity academies events study p.44 15,000 • Open-air concert • Hosts multiple
indoor arena • Also used for • Arena also used • Can be converted capacity of 20,000 sporting events
• Hosts ICC Cricket Dubai Duty Free for sport (mainly into multi-sport • Nine-hole golf and concerts
Academy and Darts Masters and combat) events venue (e.g. course throughout the
Spanish Soccer as concert venue and Dubai Sports basketball, boxing, • Tennis centre year
School run by World for two tennis, volleyball) • Secondary 15,000
Michel Salgado months each • Concert and capacity arena
• Also houses summer conference venue
residential, retail
and leisure facilities

Source: Deloitte analysis.

Economic Impact of sport in Dubai 19


section 2: facilities

5km

Jebel Ali
Dubai Offshore
Golf Resort
Skydive Dubai Sailing Club

Jebel Ali
Dubai International Dubai World
Shooting Emirates
Marine Club Trade Centre
Club Golf Club

Montgomerie
DWC Airport and Golf Club
Meydan
Expo 2020 Dubai
Racecourse
site
Jumeirah Dubai Sports City
Golf Estates
Dubai
Autodrome Nad al Sheba
Key sporting facilities from an economic Sports Complex
Dubai
perspective include:
Equestrian &
Polo Club The Sevens
• Meydan Racecourse – one of Hamdan Stadium
Dubai’s most iconic venues, the Sports Complex
centrepiece being a 1.5 kilometre-
long, 60,000-capacity grandstand.
Meydan is home to the world’s richest
horse race, the Dubai World Cup.
Economic impact expenditure of c.$205m. As outlined
• Dubai Sports City – comprises a As for events, the economic impact of above this is expenditure stemming
range of high quality sporting venues facilities has been measured by two purely from use of the facilities for non-
including the Dubai International expenditure based approaches: event purposes – for example for golf
Stadium, the Els Club golf course, courses this will include expenditure
Spanish Soccer Schools and the ICC 1. Gross expenditure, i.e. the total arising from membership fees and green
Cricket Academy. economic footprint of the facilities fees but exclude any expenditure arising
excluding that directly attributable from the professional events detailed in
• Hamdan Sports Complex – built in to events as this has already been the previous section.
2010 to host the FINA World Short accounted for in the Events section.
Course Swimming Championships This represents the expenditure The other professional sport facilities in
and has since hosted other within Dubai’s economy due to the Dubai are estimated to generate gross
international aquatic and other sport use of the facilities regardless of the expenditure of c.$50m, the majority of
events when converted into an origin of the funds themselves; and which comes from the emirate’s four
indoor multi-sport facility. main sports clubs with football clubs
2. Direct economic impact, i.e. the in the Arabian Gulf League in 2014/15
• The Sevens Stadium – best known additional funds entering Dubai from (ultimately funded by the Dubai Sports
as the home of the Emirates Airline outside the emirate exclusively due Council). Other venues include the Nad
Dubai Rugby Sevens, features to non-event use of the facilities. Al Sheba complex (not run for profit) the
a 50,000 capacity main arena This typically includes transport, Jebel Ali resort and other equestrian
constructed specifically for the accommodation and subsistence and polo facilities.
event and a secondary 15,000 arena. costs of foreign visitors.
The direct economic impact (additionality)
The main facilities outlined in Figure 11, directly attributable to facilities is
are estimated to generate gross significantly less than that attributable

20 Economic Impact of sport in Dubai


Al Nasr
Club Dubai Creek Al Shabab
Golf Club & Club
Yacht Club
Al Wasl Club Al Ahli
Club
Standard Chartered Dubai Marathon
Dubai Duty
DXB Airport
Free Tennis School and club teams from countries Conclusion
Stadium including the UK, South Africa, Australia Dubai has a range of high quality facilities
and New Zealand are also frequent suitable for elite level competition and
Al Badia Golf Club visitors to Dubai, travelling to train and grass roots participation. However, there
play in tournaments against Dubai remain both significant opportunities and
based teams or other touring parties. room for improvement in future.
Cricket, hockey and netball are the
most popular sports for such teams. The use of Dubai’s facilities for warm
to events, as more expenditure from weather training is a particular area of
non-Dubai sources is likely to enter the For activities such as these training opportunity. Whilst a number of leading
emirate due to the staging of a major visits it is Dubai’s favourable autumn, European football clubs do visit, and
event (already accounted for in the winter and spring climate, in conjunction leading golfers often base themselves in
Events section) rather than from the with the high standard of facilities and the emirate for periods of the year, the
use of facilities. The only additionality accommodation, which is an important facilities and infrastructure are already in
attributable to facilities will therefore be driver of this inbound expenditure. place for other sports to capitalise, for
from non-event visitors from abroad, i.e. example cycling and triathlon.
foreign participants or sport tourists. Dubai’s sporting facilities, especially
golf courses, are important enablers Among Dubai’s sports stakeholders it is
Of the c.$54m direct economic impact for real estate developments due to felt that the emirate’s sporting offering
due to non-event use of facilities, the the desirability of property in these would benefit greatly from the addition
majority comes from Dubai’s 11 golf locations. Whilst this will have an of a purpose built indoor 10-15,000
courses and the expenditure of the impact on real estate values, it is not capacity multi-purpose arena (despite
overseas visitors that use these facilities. an economic impact of sport per se, a 5,000 seat arena being constructed
The next largest source is from the use hence not reflected in the expenditure at the Nad Al Sheba complex) and a
of facilities as warm weather training or discussed in this section. permanent 30,000+ capacity outdoor
competition venues, for example the stadium.
training complexes at Nad Al Sheba Figure 12: Estimated economic impact
and Jebel Ali which are frequently used of sports facilities in Dubai ($m) The latter may be addressed following
by overseas football teams on winter the announcement by the Asian Football
break training. A number of English, Gross expenditure 255 Confederation that the 2019 Asian Cup
Eastern European and Russian clubs will be staged in the UAE, with a new
have visited the facilities in recent years. Direct economic impact 54 stadium in Dubai likely to be necessary
Other professional sports teams have to facilitate the successful hosting of
used Dubai en route to competitions in Note: Non-event expenditure attributable to professional sport facilities. tournament.
other parts of the world, for example Source: Deloitte analysis.

the Brazilian Youth Olympic Team These themes are explored later in the
trained in Dubai ahead of the Singapore Future outlook and opportunities for
Youth Olympics. Dubai section.

Economic Impact of sport in Dubai 21


Section 3

people

This section provides an Figure 14: Dubai population by age group and gender – 2013 (‘000s)
overview of sport participation
75+ Male Female
in Dubai, both in terms of local
70-74
residents and tourists, set out
65-69
in the context of the macro 60-64
environment (i.e. population, 55-59
economy, employment and 50-54
tourism). The facilities used
Age group

45-49
by these participants are also 40-44
discussed. 35-39
30-34
25-29
20-24
Population 15-19
Dubai is the most populous city in the 10-14
UAE, with an estimated population of 5-9
2.2m at the end of 2013. Over 80% 0-4
are foreign-born, comprising nearly 200 400 300 200 100 0 100 200
nationalities. Dubai also has a male- Population
dominated population which is attributed Source: Dubai Statistics Centre.

to the fact that the majority of expatriate


workers are men who often are not On top of the resident population, Over more recent years, Dubai’s
accompanied by their families in Dubai. Dubai hosts significant numbers of economy has become increasingly
inbound commuters (workers who diversified and GDP has grown. In 2013,
reside outside of the emirate) and it grew by 4.6% to reach $88.7 billion,
Figure 13: Dubai population by age tourists each day, which raises the with hospitality the fastest growing
group – 2013 (‘000s) daytime population yet further. sector – its 13% increase represented
the sector’s third consecutive year of
130 168 Around two thirds of Dubai’s population double-digit growth.
(6%) (8%) are aged between 20 and 39. Within
328 168
(8%) these age groups, the most populous 22 economic free zones are in operation
(15%)
is the 30-34 bracket. Such a youthful in Dubai, offering foreign businesses
population presents a significant attractive concessions and investment
opportunity for growth in sport in Dubai, incentives across sectors such as ICT
Total: 2,214
both in terms of event attendance and (Information and Communications
657 participation. Technology), media and finance. Such
(30%)
incentives, coupled with Dubai’s central
763
(33%) location and multicultural population,
Economy have helped to attract increasing levels
In the latter half of the twentieth of foreign direct investment over recent
century Dubai has rapidly developed its years ($8 billion in 2012).
0-9 10-19 20-29
infrastructure, resources and capabilities
30-39 40-49 50+
to become a leading business and Dubai also has an affluent society,
tourism destination. Such growth and in the ten years to 2013 levels of
Source: Dubai Statistics Centre. attracted large numbers of expatriate personal disposable income grew by
workers to the emirate. over 72% to a collective $24 billion.

22 Economic Impact of sport in Dubai


Sport is likely to be a beneficiary of such is well engrained, with a significant Figure 15: Workers by economic sector in Dubai
a rise in disposable income levels. employment contribution, within the – 2012 (’000s)
economy of the emirate.
Wholesale, Retail
These macroeconomic conditions
318 Trade and
bode well for sport. A strong, growing Volunteers, who are not included in the (14%) Repairing Services
550
economy requires sufficient resources FTE figures outlined earlier, will also play (23%)
122 Construction
to support it, which is likely to result a key role in the sport industry although (5%)
Manufacturing
in increasing numbers of expatriate the economic impact of these will be
workers in Dubai. A strong sporting minimal. 269
(11%) Total: 2,381 Transports,
culture is a key selling point to attract Storage and
Communication
and retain talent in Dubai, helping to 465
(20%)
enhance the quality of life both in terms Sport participation 316 Real Estate and
(13%) Business Services
of participation and as a spectator This sub-section considers the
activity. economic impact associated with sport
341 Restaurants and
(14%)
Hotels
participation, of which there are various
forms including mass participation Other sectors
Employment events and sport within schools. Whilst
There are significant numbers of people some events, programmes and facilities Source: Dubai Statistics Centre.

working in Dubai who reside outside of are specifically targeted to increase


the emirate, partly due to the cheaper participation amongst the Emirati
accommodation rates in neighbouring community, others are aimed more at
emirates. As a result, Dubai’s workforce expatriates. Regardless of background,
– around 2.4m in 2012 – exceeds its sport participation remains an important
resident population of 2.2m. component in the lives of a significant
number of Dubai residents.
The dominant sectors in terms of
employment numbers are Wholesale,
Retail Trade and Repairing Services Figure 16: Sport share of national employment as percentage of heads (%)
(23% of the total workforce in 2012),
Construction (20%) and Manufacturing 0.80
(14%), as illustrated by Figure 15.
0.61 0.60
The sport industry supports significant 0.60
levels of employment, both directly
0.45
and indirectly across the economy. 0.39
0.40 0.37 0.37
We estimate that c.14,500 FTEs are 0.33
Denmark

employed in the core sport industry, 0.28


0.24
0.6% of the total workforce. This figure
0.19
Portugal

0.20
Netherlands

would be even higher with the inclusion 0.15


Spain
Germany

Sweden
Belgium

of workers in ancillary sports industries


Greece

France
Ireland
Dubai

Italy

(i.e. those not working 100% of the


UK

0.02 0.02
time in sport). Figure 16 shows that this 0.00

places the city of Dubai favourably when


compared to a number of European Source: SpEA (2012); Deloitte analysis.

countries, demonstrating that sport

Economic Impact of sport in Dubai 23


section 3: people

Sport – a key part in Dubai’s future Committee in 2006 to help achieve this.
DSC also supports a number of female-
The leadership of Dubai sees sport as an important component in the future only tournaments and events, such as
development of the emirate and the wider UAE. the Sheikha Hind Women’s Sport
Tournament and the Dubai Women’s
• Dubai Plan 2021 with its theme of ‘A City of happy, Creative and Empowered Run, the latter attracting around 6,000
People’ reinforces the responsibility of individuals to maintain a healthy lifestyle, runners annually.
enabling them to play an active, productive and innovative role in all aspects of
society and the economy. Other significant mass participation
events include:
• UAE Vision 2021 National Agenda has a national key performance indicator
of increasing the number of Olympic and Paralympic medals won by UAE • Nad Al Sheba Sports Tournament,
athletes, with the aim of making citizens proud of their identity and have a sense held over 22 days during Ramadan,
of belonging. which attracts over 3,000 athletes
competing across six sports: padel
• UAE National Day (2 December) will from 2015 also incorporate a National tennis, futsal, cycling, running,
Sports Day as announced by His Highness Sheikh Mohammed, stressing the squash and volleyball;
importance of sport and the need to promote a culture of exercise and sports
activities in the young. • Spinneys Dubai 92 Cycle
Challenge, operated by Promoseven
Sports Marketing and which has
grown to become the largest
Government role leading events on the global marathon amateur cycling event in the Middle
One of the Dubai Government’s key circuit. In 2015, over 25,000 runners East and North Africa. The 2014
strategic priorities is to develop Emiratis’ participated across the Marathon, 10km edition attracted 1,800 participants;
interest and participation in sport. As Road Race and 3km Fun Run, the vast
well as expanding its portfolio of major majority being non-elite runners. • Emirates Airline Dubai Rugby
sporting events and making Dubai a Sevens which comprises an
leading sports tourism destination, it is Despite being in its relative infancy, the international amateur tournament
committed to promoting an inclusive Color Run has quickly become one of alongside the World Series event,
sports participation culture in order to Dubai’s leading mass participation events attracting more than 3,300 players in
facilitate an active and healthy lifestyle since it was launched in 2012. The 5km over 220 teams. Will also include a
across society. race, which is organised by IMG and netball tournament from 2015;
supported by DSC, attracted around
The Dubai Sport Council (“DSC”) 12,000 participants in 2014, around two • We Run Dubai, a 10km race in
was established in 2005 with the aim thirds of whom were women. Downtown Dubai that forms part of the
of building an outstanding sports global Nike ‘We Run’ series, attracting
community in the emirate. A significant DSC runs a number of mass thousands of competitors;
amount of DSC’s budget will be participation events and initiatives
attributable to driving participation. throughout the year including the Dubai • Beat Diabetes Walk, a 2km
Pulse, a physical activity programme walk taking place in Zabeel Park
Mass participation events comprising four events (swimming, in December which attracts over
Mass participation events are becoming walking, cycling and running), and the 20,000 participants; and
increasingly popular worldwide. As well Furjan Championships, an annual
as facilitating a healthier lifestyle, the residential districts tournament. It • Electric Run, a 5km night run which
social element of the experience and the is estimated that the Dubai Pulse will take place for the first time in
challenge to complete the event are key programme has contributed to a 7% Dubai in November 2015.
factors which attract entrants. Dubai is rise in the number of Dubai residents
no exception to this trend. that regularly engage in physical activity. In total, we estimate that mass
participation events attract over 85,000
The biggest mass participation event Promoting the culture of sport and participants each year in Dubai,
in Dubai is the Standard Chartered practice of physical activity among which will result in significant gross
Dubai Marathon. Founded in 2000, women in Dubai is a key focus of expenditure through entry fees and
it has grown to become one of the DSC, and it formed a Women’s Sport spending on equipment. Those events

24 Economic Impact of sport in Dubai


attracting overseas competitors such
as the Emirates Airline Dubai Rugby
Sevens and Standard Chartered Dubai
Marathon will also contribute to the
direct economic impact of sport in the
emirate, to an estimated sum in excess
of $10m p.a.

Mass participation events are an


effective tool to attract inbound tourism,
both from GCC countries and further
afield, and their rise in popularity
presents an opportunity which Dubai
can capitalise upon.

School sport
Figure 17 shows the number of schools,
students and teaching staff for the
2013/14 academic year in government
and private establishments. Sport forms
part of the curriculum at all schools, with
a minimum of two 45 minute sessions per
week being carried out by all students.
A children’s football training session in Dubai
Dubai’s education system attempts to
instil a culture of sports participation
in young people, and DSC has made Figure 17: Number of schools, students and teaching staff in Dubai (2013/14)
efforts to expand the sports offering
in schools. As well as sport forming Government Private TOTAL
part of the regular curriculum, DSC
runs the Hamdan Bin Mohammed Schools 77 158 235
School Games Tournament from Students 29,080 243,715 272,795
October to the end of April each year. Teaching staff (Total) 2,503 9,200 11,703
The tournament aims to improve sport Teaching staff (Sport and Physical Education) c.250 c.1,000 c.1,250
in Government schools and use school
sport as a base from which promising Note: Does not include Adult and Technical schools. Source: Dubai Sports Council.

talents can develop towards achieving


success at national level. Over 1,700
competitors participated across the In 2010 the Princess Haya Initiative population) and around 70 private
various sports in 2014. commenced to promote physical gyms. Other facilities that are made
education and active lifestyles among use of include those in schools – for
In addition the UAE National Olympic schoolchildren. Former England cricketer example DUPLAYS, the region’s largest
Committee runs the School Olympics Andrew Flintoff, who lived in Dubai for a organiser of recreational sport, hires
programme which, whilst promoting an period, participated in its launch. a large number of school facilities in
active lifestyle, also provides a means the evening on which it runs various
of identifying future sporting talent. The Facilities competitions and leagues, and around
UAE-wide programme is delivered to In addition to the elite and professional 80 private schools have swimming
nearly 20,000 children across Dubai in sport venues noted in the Facilities pools, several of which are available for
33 training centres, with the winners of section, Dubai contains a diverse range use by clubs and other groups out of
each category being included on of facilities available to participants school hours.
an elite-level training camp to Italy in regardless of their level of ability. The
recent years. ‘core’ facilities available to the general Recent notable additions to public
public include sports clubs funded by facilities have been the cycle paths at
DSC (used exclusively by the Emirati Nad Al Sheba and Al Qudra, both

Economic Impact of sport in Dubai 25


section 3: people

The seasonal calendar and effect


on participation
As illustrated by the calendar of sports
events at Figure 1, fewer events are
held throughout Dubai’s summer
months when temperatures outside
often exceed 40 degrees Celsius. Such
temperatures will have an obvious effect
on participation levels for outdoor sports
and due to the fact that significant
numbers of residents go on vacation
around this time.

During these months the need for


indoor sporting offerings become more
pertinent, and the Dubai World Trade
Centre’s Sheikh Saeed Hall transforms
Dubai Creek Golf and Yacht Club into the region’s largest air-conditioned
indoor sports complex to facilitate this.
of which provide high quality, traffic- Other sports participation The 80-day event, known as Dubai
free facilities. The Nad Al Sheba path • The Sports Village academies based Sports World, attracted nearly 200,000
provides 4km, 6km and 8km loops at Dubai Sports City attracted a attendees in 2015, a 13% increase
with an 850m children’s path, whilst total footfall of over 820,000 in 2014, compared with the previous year.
Al Qudra offers two longer distance split between football (c.300k), rugby
loops of 18km and 50km with c.150km (c.280k) and cricket (c.240k). In 2015, Another venue which offers indoor
in total. By 2030, the Road Traffic this is projected to rise to around 1.4m. sporting activities is Ski Dubai, a
Authority intends there to be 900km of 22,500m² indoor ski resort which
dedicated cycle paths within Dubai. • Rugby is one of the fastest growing provides the opportunity to participate
participation sports in Dubai and the in snow sports all year round.
These paths, together with events such UAE as a whole. For example, there
as the Dubai Tour, Spinneys 92 and the were over 1,750 registrants of Dubai Offering a compelling programme of
inaugural running of the UCI Dubai Gran based rugby clubs for the 2014/15 events during the summer months
Fondo in March 2015, have helped season across the younger age should be a strategic priority for
increase participation and contributed to categories, including 1,200 Emiratis. Dubai, although the progress made by
the cycling ‘boom’ that has taken place offerings such as Dubai Sports World
in the emirate over the past decade. • DUPLAYS is the region’s largest is an encouraging sign. The potential
This has led to a significant economic sport and social club. c.40,000 of need for a purpose built multi-sport
footprint, estimated at over $2m due its members are based in Dubai, indoor venue is a finding referred to in
to the annual spend of participants on 60% of whom are under 35. It runs both the Facilities and Future outlook
equipment. recreational and competitive leagues and opportunities for Dubai sections of
in 15 different sports. this report.
Another sport to benefit has been
triathlon, whose participants also • Polo is a sport that is becoming Figure 18: Estimated economic impact
make extensive use of the cycle increasingly prominent in the of sport participants in Dubai ($m)
paths. Triathletes also benefit from the emirate. Popular with both Emirati
swimming facilities available, whether it and expatriate residents alike, gross Gross expenditure 172
be Dubai’s extensive coastline or three expenditure associated with the sport
Olympic size swimming pools – more at the two leading clubs is estimated Direct economic impact 8
than any city in the United Kingdom to be in the region of $4m p.a. Dubai
– which have also helped increase is also the birthplace of beach polo, Note: Excludes participation in events (included in Events section)
and at elite/professional facilities (included in Facilities section).
expenditure on sport in the emirate. and the Beach Polo Cup has taken Source: Deloitte analysis.

These have contributed to numbers of place since 2004. The sport is now
registered triathletes rising from under played in over 30 countries worldwide.
500 to nearly 3,000 in the last decade.

26 Economic Impact of sport in Dubai


Tourism Events still play a role in this decision
Tourism forms a central part of Dubai’s through the place marketing benefits
economic growth and diversification, they provide – for example a golf tourist
and the emirate has invested significant may wish to play at Jumeirah Golf
amounts over recent years in order to Estates having watched coverage of
develop its infrastructure, attractions the DP World Tour Championship on
and services to attract tourists and television.
serve their needs.
Dubai’s golf stakeholders are
Despite being known for its high-end continuing to position Dubai as one
offerings Dubai has established a of the leading destinations worldwide
broad mix of hotels in order to appeal for golf tourists due to its world-
to a wider tourist base, from budget class facilities, favourable weather
accommodation to the exclusive Burj conditions and raised profile from the
Al Arab. At the end of 2014, Dubai had successful hosting of international
c.660 hotels and serviced apartments events. It is estimated that around
which offer around 92,000 rooms and 16,000 international visitors played
host around 2.8m guests every quarter. 40,000 rounds of golf in 2013, although
significant opportunities exist to increase
In the decade to 2013, visitor numbers this yet further. The golf case study on Dubai International Parachuting Championships at Skydive Dubai
to Dubai more than doubled, increasing page 44 discusses this in more detail.
from 5.4m (2004) to 11m (2013) at a
compound annual growth rate (“CAGR”) Watersports have long been popular People – contribution to Dubai’s
of 8%. In addition, the length of time in Dubai, and in addition to hosting economy
that visitors spend in Dubai is increasing leading events such as the Louis Vuitton This section has summarised sport
year on year, with the average number Trophy sailing regatta in 2010, the participation in Dubai in terms of the
of guest nights rising from 2.8 to 3.8 emirate is a popular tourism location for emirate’s population and underlying
over that period. This represents just sports including windsurfing, jetskiing, economic conditions. This has included
under 42m guest nights which would powerboating and scuba diving. mass participation events, school
be higher if those visitors staying with sports, and the facilities on offer to
friends and relatives were also included. Other sports popular amongst tourists the wider Dubai public aside from
include winter sports such as skiing those elite/professional venues already
Whilst recent growth has been and snowboarding at Ski Dubai, and discussed in the Facilities section.
impressive, Dubai has set itself an extreme sports such as skydiving
ambitious target for future growth. A key at Skydive Dubai. XDubai has been When the economic contribution of the
objective within its ‘Vision for 2020’ is to established to promote extreme sports events and facilities already accounted
attract 20m visitors per year and generate in the emirate, including wingsuiting, for have been removed (to avoid
$82 billion in annual tourism revenues by flyboarding and events such as the double-counting), sport participation
2020. Sport tourism is expected to play a Reebok Spartan Race. The FAI World and other economic elements not
key role in helping to meet this target. Air Games will take place in Dubai in previously captured are estimated to
December 2015, the World Parachuting have contributed over $172m to Dubai’s
Sport tourism Championships were held in 2012 and economy, with c.$8m of additionality
Sport tourism comprises any activity the Dubai International Parachuting from overseas visitors participating in
in which people are attracted to a Championships are held annually at sport on publicly available/grass root
particular location to participate in or Skydive Dubai, since 2010. facilities (participation at elite facilities
view sport-related activities. Events has already been accounted for in the
form a key part of the sport tourism Sport events and recreational sporting Facilities section).
landscape. However, tourists also activity act as a catalyst for tourism and
travel for other purposes such as provide significant levels of additionality There remains a significant opportunity
to visit sporting attractions, attend to Dubai’s economy. to increase this direct economic impact
sport conferences and exhibitions via the use of Dubai’s public facilities,
and participate in sporting mass such as the cycle track at Al Qudra for
participation activities. overseas warm weather training camps/
mass participation events in the winter.

Economic Impact of sport in Dubai 27


Section 3: people · case study

Emirati talent

Local athletes and teams who Figure 19: UAE’s FIFA World Ranking history
achieve elite success on an
1
international scale help to drive
economic impact. Success
20
raises the profile of a sport,
inspires national pride and the
feel-good factor generated can 40
lead to an upsurge in interest
and participation.
60

A selection of elite level sporting case


studies are provided below, highlighting 80

success stories for Emirati talent.


100

Football
120

Domestic
140
Football is the leading professional sport
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
in Dubai. It has five professional clubs
– Al Ahli, Al Nasr, Al Shabab, Al Wasl Source: FIFA.

and Dubai CSC – four of whom were


participants in the 2014/15 Arabian Gulf
League, the UAE’s professional football related club revenues for the league as National
league (Dubai CSC were relegated a whole range from around $10m to The UAE men’s national football team
to the second tier in 2013/14). Al Ahli $40m per club. has enjoyed a period of success over
has won the league twice since it was recent years. Since FIFA introduced
established in 2008/09 and (at the time In order to further boost football’s its World Ranking in December 1992,
of writing) has reached the final of the economic footprint, clubs need to the UAE has had an average ranking
2015 AFC Champions League. increase their commercial acumen and of 80. However, having fallen to as
expertise, for example by engaging low as 130th in 2011, it is ranked 70th
Considerable funding for clubs comes marketing agencies or other consultants as at September 2015. It is the fifth
from DSC in the form of annual grants. to assist in this area. In addition, as highest ranked member of the Asian
These amounts are accounted for the majority of attendees at domestic Football Confederation (“AFC”), and
within the Facilities section in terms of league football matches are Emiratis, has competed in one FIFA World Cup
economic impact. it will be important to attract a wider (1990) in its history.
demographic of society in order for
Average attendances at Dubai’s clubs professional football to grow. Factors The UAE has qualified for the AFC’s
are typically between 3,000 and 5,000 such as improved facilities and the quadrennial flagship tournament, the
which, with at least 13 home games attraction of quality international players Asian Cup, in nine out of the last ten
played by each club per season, will will help in this regard. editions. At the 2015 Asian Cup, the
contribute towards sport’s gross UAE achieved the second best result in
expenditure. The limited interest from its history; a third place finish falling just
non-Emirati residents will, however, short of the runner-up position achieved
result in minimal additionality. Football- in 1996. Having come second to Iran in

28 Economic Impact of sport in Dubai


The UAE men’s football team at the 2015 AFC Asian Cup

the group stage, the team beat defending Tournament hosts • Around 45,000 fans from overseas,
champions Japan in the quarter-finals, In March 2015, the AFC awarded the of a total 650,000 fans who attended
before losing to eventual winners UAE the rights to host the Asian Cup the matches; and
Australia in the semi-finals. The UAE in 2019, with three host cities of Abu
finished the tournament on a high with Dhabi, Dubai and Al Ain. This will be the • 15% increase in tourist numbers
victory over Iraq in the third place match. second time that the UAE has hosted anticipated in the months immediately
the tournament, having previously done following the tournament.
The team’s strong performance so in 1996. The tournament is likely
generated a wave of excitement to attract large numbers of overseas In addition, 24 teams will be featured at
within Dubai, including the expatriate visitors to Dubai, which will provide the 2019 tournament (up from 16), and
community, and it will be important to significant economic impact. a new stadium will reportedly be built in
capitalise on this in order to develop Dubai, which will provide another boost
football and inspire the next generation By way of comparison, the 2015 Asian to football in the city.
of Emirati footballers. Cup provided the following benefits:
Other international football tournaments
Having participated in every set of • An estimated c.$18m added to hosted by the UAE include the 2003
qualifiers for the Men’s Olympic Football Australia’s gross domestic product; FIFA World Youth Championship, the
Tournament since 1980, the U-23 2009 and 2010 FIFA Club World Cups
team finally succeeded in achieving • Australia showcased to a potential and the 2013 FIFA U17 World Cup. The
qualification for the London 2012 television audience of 2.5 billion UAE will also host the FIFA Club World
Games, and finished with one point viewers; Cup again in 2017 and 2018.
from its three matches.

Economic Impact of sport in Dubai 29


Section 3: people · case study

Olympic and paralympic The UAE NOC is also focused on The Tour has grown from four events
games developing talent capable of delivering in the inaugural 2011 season to ten
international performances for the events across five countries in 2015,
Based in Dubai, the UAE National country in the future and has formed a carrying a total prize fund of $525,000.
Olympic Committee (“UAE NOC”) was committee of experts, chaired by His Two events on the calendar are staged
founded in 1979 and is funded by the Highness Sheikh Ahmed bin Mohammed in Dubai: the Dubai Creek Open at the
General Authority of Youth & Sports bin Hasher Al Maktoum, to assist in Dubai Creek Golf & Yacht Club and
Welfare, the supreme governmental this area. In 2014 the ‘Elite Club’ was the Sheikh Maktoum Dubai Open at Al
body responsible for the welfare of youth launched to implement a development Badia Golf Club.
and sport in the UAE. The UAE NOC pathway to excellence, offering athletes
has been a member of the International funding and performance management With golf returning to the Olympic
Olympic Committee since 1980, and the resources. Games programme at Rio 2016, the
UAE has competed in eight consecutive development of Emirati golfers through
Olympic Games since 1984. Another initiative has been to take the MENA Golf Tour presents an
young athletes to intensive training opportunity for the UAE to participate in
His Highness Sheikh Ahmed bin camps overseas, as seen in August future Games.
Mohammed bin Hasher Al Maktoum, a 2014 when 82 athletes in the 13-14 age
member of Dubai’s ruling family, is the group travelled to Italy. This follows its
UAE’s most high profile and successful success with the UAE School Olympics Heritage events
Olympic athlete. He made Olympic programme, which was delivered to
history in 2004, claiming the UAE’s first nearly 20,000 Dubai children across In addition to global sports, many of
ever Olympic medal by winning gold in 33 training centres, as discussed in the the UAE’s oldest and most enduring
the double trap shooting which remains People section. traditions also feature in Dubai’s
the UAE’s only medal at the Olympic sporting landscape. One of the largest
Games. As well as competing in two The UAE’s strong performance on the events to focus solely on disciplines
other Olympic Games, Sheikh Ahmed world equestrian circuit in recent years, which celebrate cultural heritage is the
is now a successful coach, having highlighted by winning a gold medal at Fazza Championship, which takes place
coached the British athlete, Peter the 2014 FEI World Equestrian Games, between January and April each year at
Wilson, to the double trap shooting gold suggests that there should be scope various locations across Dubai.
at London 2012. for the UAE to also target equestrian
participation in future Olympic Games. The Championship was launched under
At London 2012, the UAE NOC sent the patronage of H.H. Sheikh Hamdan
the nation’s largest ever team to the Bin Mohammed Bin Rashid Al Maktoum
Games, with 26 athletes (24 men, MENA Golf Tour in 2002, and aims to help preserve the
two women) competing in six sports: heritage of the UAE and enable future
athletics, football, judo, shooting, The MENA (Middle East & North Africa) generations to appreciate their roots.
swimming and weightlifting. Subject Golf Tour provides another platform for
to qualification, these will also be the the showcase of Emirati talent on the Disciplines that form part of the
UAE-represented sports at the Rio world stage. The Tour is owned and Championship include:
2016 Games. In addition, cyclist Yousif operated by ‘Golf in Dubai’, whose
Mirza has qualified for Rio 2016 having aim is to promote Dubai as one of the • Al Youla, the UAE’s traditional dance
performed well at the 2015 Asian world’s leading golfing destinations and dating back over 200 years, which
Cycling Championships. to underline Dubai’s other international sees competitors judged on how
attractions to a worldwide audience. gracefully they control the Al-Youla
The UAE has also sent athletes to every weapon while following a rhythm;
Paralympic Games since 1992. 12 The Tour is aimed at the best MENA
medals have been won in total, including National amateur and professional • Falconry, one of the most popular
two golds, the most recent of which players, along with eligible players disciplines, which reportedly
came at London 2012 and was won by from around the world. It gives MENA attracted over 7,000 participants
Abdulla Sultan Al Aryani in shooting. National professionals and amateurs the from across the UAE and further
opportunity to develop their golfing skills afield in 2015;
As discussed above, such successes alongside international players.
help to increase participation and
economic impact.

30 Economic Impact of sport in Dubai


Dhow racing

• Free diving, which celebrates Dhow racing is another popular


the heritage of pearl diving which heritage event, amongst which the
depended on the diver’s breathing Al Gaffal race is the most prominent.
strength and the length of time under The 2014 edition of the race saw the
water; participation of over 100 sailboats and
2,000 sailors.
• Saluki, hunting with dogs, which
celebrates the hunting culture of the Endurance horseracing is also
region; and extremely popular amongst the Emirati
population. Facilities such as the Dubai
• Shooting, covering both heritage International Endurance City have
rifles (Saktoun) and clay pigeons. helped Dubai become a leading venue
for the sport, with eight endurance Camel racing
The Fazza Championship for Special events being held each year between
Needs was added to the calendar November and March. In August 2014
in 2009, which sees participants His Highness Sheikh Hamdan bin
with physical challenges competing Mohammed bin Rashid Al Maktoum
at different skill levels, and is held in won the endurance gold medal for the
conjunction with the Dubai Club for UAE at the Alltech FEI World Equestrian
the Disabled. Games in France.

Camel racing is a traditional sport in The gross expenditure for heritage


Dubai with a strong Emirati following. sports such as dhow racing is likely to
Meetings regularly take place at the be significant due to the capital costs
Al Marmoum Camel track throughout of the equipment used. However, the
Dubai’s events season. direct economic impact is likely to be
low, although certain key events do
attract participants from elsewhere in
the UAE and wider GCC region.

Economic Impact of sport in Dubai 31


Section 4

Dubai’s broader
Sport industry
In this section we consider the the UAE NOC, therefore facilitating Across these three bodies, we estimate
stakeholders involved in Dubai’s participation schemes including the that at least 100 staff work full-time on
broader sport industry, namely School Olympics. sport.
Government bodies, sports
federations and governing Dubai Sports Council Conclusion
bodies, as well as organisations Established in 2005, DSC’s overriding It will be important for the Government
in the supply chain that provide objective is to provide a world-leading to maintain a strong emphasis on sport,
goods and services to the core sports environment at all levels for particularly the role sport plays in the
industry. We also assess the Dubai, with a particular focus on grass development and advancement of the
indirect and induced impacts roots sport for Emiratis. As discussed city, and continue to provide sufficient
of sport expenditure as it is in the People section, it runs various financial investment in order to support
recycled through the economy, events and initiatives to develop sport at the development of the sport industry
as well as the level of outbound this level, such as the Dubai Pulse and in Dubai.
investment committed by the Furjan Championships.
Dubai-based companies in the
global sport industry. At an elite level, DSC helps run various Sports federations and
events including cycling, swimming and governing bodies
table tennis. Cycling’s Tour of Dubai By administering, regulating and
Government policy and funding is its biggest event, with a multi-million sanctioning their respective sports,
The Government plays a vital role in dollar activation budget. sport federations and governing bodies
supporting and developing sport in Dubai, play a key role in the provision of sport
both through its policies and funding. Department of Tourism and in Dubai. As well as the development
Commerce Marketing of sport at an elite level, increasing
Its main items of expenditure on sport Established in 1997, DTCM works to participation typically forms a key part
relate to grants to sports clubs, running plan, supervise, develop, and market of their remit.
events, and facilities. The economic Dubai’s tourism industry.
impact of this expenditure has been There are over 30 sport federations and
considered in each of the Events, One of DTCM’s aims is to bring major governing bodies with a permanent
Facilities and People sections. events to Dubai, which are viewed as base in Dubai, (see Figure 20).
a key driver of tourism. They facilitate
In summary, the key Government and support events through promotion We estimate that these organisations
stakeholders include: on their website, social media and employ around 300 FTEs, in addition
other communications etc., as well to volunteers. The ICC contributes a
General Authority of Youth as assisting with visas and trips for significant proportion of this.
& Sports Welfare familiarisation.
GAYSW is the federal body (at the UAE By way of comparison, in 2013 there
level) responsible for the welfare of DTCM’s primary objective is to attract were 67 international sports organisations
youth and the sport sector. Established 20m visitors by 2020 (Tourism Vision with operational activities in Switzerland
in its current form in 1999, it plays a 2020). Sport is expected to play a key (mainly Lausanne), employing a total of
leading role in developing a positive role in helping to achieve this target, as 1,770 FTEs, demonstrating the scale that
culture and environment for youth sport. well as in meeting Dubai’s more holistic can be achieved.
Its strategy includes objectives vision for 2021 (Dubai Plan 2021), which
related specifically to youth, women, sets out various strategic developmental These organisations generate revenues
community and the disabled. It is aims for Dubai. through grants from the Government,
also the ultimate provider of funds to supplemented by other income such

32 Economic Impact of sport in Dubai


as membership fees, sponsorship and Figure 20: Sport federations and governing bodies based in Dubai
events. As sport in Dubai becomes
more professional and commercial, their International
economic impact will grow.
• International Cricket Council • World Professional Powerboat
In terms of economic impact, we • European Tour (Golf) Association
estimate that these organisations
contribute c.$25m in gross expenditure The UAE
to Dubai, of which c.$7m represents
additionality. • Arab Golf Federation • UAE InterSchool Sports Association
• Emirates Bodybuilding Federation • UAE Marine Sports Federation
We assume that the majority of • Emirates Bowling Federation • UAE National Anti-Doping Committee
organisations operate on a break- • Emirates Golf Federation • UAE National Olympic Committee
even basis, with expenditure largely • Emirates Motor Sports Federation • UAE Rugby Federation
comprised of staff costs and other • Emirates Weightlifting Federation • UAE Padel Federation
overheads to support the sport. • UAE Athletics Federation • UAE Sailing & Rowing Federation
Expenditure arising from events and • UAE Basketball Association • UAE Shooting Association
tournaments that these organisations • UAE Billiards & Snooker Association • UAE Squash Association
run is captured in the Events section. • UAE Chess Federation • UAE Swimming Association
• UAE Disabled Sports Federation • UAE Table Tennis Association
As discussed in the case study Dubai • UAE Fencing Federation • UAE Taekwondo & Karate Federation
as a hub for international sport (p.56), • UAE Football Association • UAE Tennis Emirates
Dubai has a real opportunity to grow • UAE Handball Federation • UAE Volleyball Federation
its role as a Middle Eastern hub for • UAE Hockey Committee • UAE Women’s Sport Committee
international federations.

Examples of supply chain organisations • Medicine and sports science


Supply chain assisting with the production and institutions (not solely provided to
As outlined in the Introduction, in this provision of sport-related goods and sports organisations).
report we have made a distinction services include:
between the core sport industry, which These organisations play a key role in
contains those organisations that work • Construction and management supporting the development of sport in
only in sport, ancillary industries which, companies to design and build Dubai and its economic contribution to
whilst working in the sport industry, facilities; the emirate.
are not 100% reliant on it, and supplier
industries, which contain organisations • Maintenance companies; From our consultations with event
in the supply chain that provide goods organisers, a high proportion of suppliers
and services to the sport industry. • Food and beverage suppliers (e.g. to used to run events (e.g. infrastructure
golf clubs, sports clubs, events etc.); development, event delivery) are based
Although the raison d’être of in Dubai, and therefore will contribute
organisations within supplier industries • Legal and professional services firms economic impact in Dubai rather than
is not about sport, it is still important to (including marketing, accounting etc.) leakage overseas.
consider them in an impact assessment who provide consultancy advice to
of sport in Dubai, as they form part of the sport (amongst other) organisations; We estimate the economic impact of
overall sport ecosystem. and sport’s supply chain below.

Economic Impact of sport in Dubai 33


section 4: dubai’s broader sport industry

We have also calculated a Gross Value


Added (“GVA”) figure, which is more
comparable to Gross Domestic Product
(“GDP”), and takes into account non-
economic leakage relating to production
and other costs. This is estimated to be
$289m for sport in Dubai.

In gross expenditure terms, direct


expenditure of $1.1 billion leads to
indirect and induced expenditure
of $325m and $302m respectively,
resulting in total gross output of over
$1.7 billion (see Figure 22).

Figure 22: Estimated impact of sport


on Dubai – Gross ($m)

2,000
302 1,763 1,061

Non-economic
leakage
1,600
325

Induced
expenditure

Gross Value
1,200 1,136
XCAT World Series Powerboating

Added
Direct
expenditure
Indirect
expenditure
800 702

Total gross output


Indirect and induced impacts sources (and hence the level of
In addition to the direct economic leakage), and the profile of expenditure 400
impact we also consider the indirect associated with sport in Dubai.
and induced impacts to develop a total 0
“gross output” figure. The methodology Our model estimates that the direct
used for estimating indirect and induced economic impact (direct expenditure) of Source: Deloitte analysis.

impacts is set out in the Limitations sport in Dubai is $421m. We estimate


section, and estimates two components that indirect and induced expenditure
of indirect impact: amount to $125m and $124m Our estimated GVA of c.$0.7 billion
respectively resulting in total gross equates to c.0.8% of Dubai’s GDP
• Indirect (business-to-business output in Dubai of $670m. ($88.7 billion in 2013). By way of
impact) – which estimates the total comparison, according to a 2014 study
additional expenditure caused by Figure 21: Estimated impact of sport by the European Commission, the
businesses sourcing from further on Dubai – Additionality ($m) sports sector accounts for c.1.2% of
down the supply chain (i.e. by EU’s global GDP (on a broadly like for
businesses reinvesting the money 800
like basis).
124 670 381
they received on supplies); and
The broad conclusion therefore is that
Non-economic
leakage
Gross Value

600 125
• Induced (consumer) impact – Dubai’s sport sector is approaching
Added
Induced
expenditure

which measures the associated 421


that of other economically developed
400
Total gross output
Direct
expenditure
Indirect
expenditure

consumer spending impacts (i.e. by 289


countries in terms of its economic scale
individuals recirculating revenue into and contribution, albeit lags behind
the economy). 200 somewhat at present.

The collective impact of these two 0


factors is variable and depends on
the structure of Dubai’s economy, its Source: Deloitte analysis.

level of interdependence with external

34 Economic Impact of sport in Dubai


Outbound Investment Cheltenham Festival, the Grand

CristinaMuraca / Shutterstock.com
In addition to supporting the domestic National, the Investec Derby Festival,
sport industry, Dubai-based companies Royal Ascot, Glorious Goodwood and
are very significant players in the global the entire QIPCO British Champions
sports sponsorship industry, with Series. Dubai also sponsors the
Dubai a city synonymous with sport as specialist channel Racing UK.
a result.
Dubai is also the official sponsor of
Emirates Airline is Dubai’s most active the Chinese Table Tennis Association,
outbound investor in sport, having which sees Dubai’s name highlighted
well-established partnerships with on the national team’s official clothing
numerous high-profile sports properties and other signage. Being one of China’s
around the world (as seen in Figure most popular sports, this generates
23). Its global sport budget runs into substantial exposure for Dubai, and
hundreds of millions of dollars across the estimated 2014 media value in the
its sponsorship portfolio outside Dubai Chinese market amounted to c.$9m.
in 2015. Emirates is therefore amongst Emirates Airline sponsors AC Milan
the very top global brands in terms of Dubai Duty Free is another significant
sports sponsorship. investor in global sport outside its
domestic Tennis Championships and Derby Festival at The Curragh. It has
The Dubai brand also has a major Darts Masters competition, particularly recently become the title sponsor of
presence in the UK horseracing in golf and horseracing. In horseracing, golf’s Irish Open.
industry, sponsoring (through Falcon it sponsors events such as the Dubai
and Associates) all of the broadcaster Duty Free Stakes (Newbury) and the Other Dubai-based sponsors of
Channel 4’s horseracing coverage Dubai Duty Free Shergar Cup (Ascot), international golf properties include
including iconic events such as the as well as the Dubai Duty Free Irish DP World, official partner of the BMW
PGA Championships and the Hong
Figure 23: Global sporting events/teams sponsored by Emirates Airline Kong Open, and Jumeirah Golf
Estates, a top-tier global partner of the
Australian Rules Football: Horseracing: Godolphin, the European Tour.
Collingwood Football Club. international horseracing stable;
Carnivals: Dubai World Cup and As discussed in the Horseracing case
Cricket: Durham County Cricket Club; Melbourne Cup. study, His Highness Sheikh Mohammed
Emirates Old Trafford; ICC; ICC’s Elite Major races: Dubai World Cup, Bin Rashid Al Maktoum is one of
Panel of ICC Umpires and Match Emirates Melbourne Cup, Emirates the leading international investors in
Referees; Lancashire County Cricket Singapore Derby. British horseracing, primarily through
Club. the Darley breeding and Godolphin
Motorsports: Formula 1. horseracing operations headquartered
Football: AC Milan; Arsenal FC; Asian in Newmarket, UK. These operations
Football Confederation; Benfica; The Rugby: Glasgow Sevens; Lions (South support significant levels of employment
Emirates Cup; The Emirates FA Cup; Africa); Rugby World Cup 2015 and and contribute substantial amounts
Hamburger SV; New York Cosmos; 2019; USA Rugby; World Rugby to the local economy through capital
Olympiacos FC; Paris Saint-Germain; Referees and Match Officials. and other expenditure. His Highness
Real Madrid CF. Sheikh Mohammed also runs breeding
Sailing: Emirates Team New Zealand. operations in other countries including
Golf: Australian PGA Championship; Ireland, France, Australia, the USA and
Boeing Classic (USA); Emirates Tennis: ATP World Tour Finals; Japan, and also has horses in training in
Australian Open; European Tour Barcelona Open; BNP Paribas Open; these territories.
(19 events). Emirates Airline ATP Rankings;
Emirates Airline Australian Open Such outbound investment in sport
Series; Emirates Airline US Open provides a powerful platform to promote
Series; Internazionali BNL d’Italia; Dubai as a leading sporting, leisure and
Rogers Cup; Roland Garros. business destination, and acts as a
facilitator to inbound investment.

Economic Impact of sport in Dubai 35


section 5

City Benchmarks

Introduction The majority of the benchmark cities Los Angeles London


regularly feature in the SportBusiness
This section compares Dubai with other Ultimate Sport Cities Awards, a ranking Population Population
leading event-hosting cities across of the world’s top sports hosts. Its most 13m 8.6m
the world, in particular to highlight the recent comprehensive ranking (2012)
critical success factors and lessons included six of the benchmark cities in Key events Key events
from such cities. the top 25 event-hosting cities in the 1984 Olympic 2012 Olympic and
world, as shown at Figure 24. Games, 1994 Paralympic
It compares and contrasts Dubai with   FIFA World Cup, Games, Rugby
a selection of international cities by These overall rankings take account of a Candidate city World Cup 2015,
examining the quality and quantity of number of criteria including the number for 2024 Olympic World
events hosted and facilities. and importance of events held from and Paralympic Championships in
2008 to 2016, the quality of facilities Games Athletics 2017
The following cities have been selected and infrastructure, and the support of
as benchmarks: Auckland; Baku; Doha; local government and event strategy Key venues Key venues
Dubai; Istanbul; London; Los Angeles; amongst others. Staples Center, Olympic Park,
Singapore. Dodger Stadium, Wembley Stadium,
StubHub Center All England Lawn
Tennis Club
Figure 24: SportBusiness Ultimate Sport Cities ranking (2012)

City Rank (2012) Rank (2010) Region

London 1st 3rd Europe

Melbourne 2nd 1st Oceania

Singapore 6th 2nd Asia

Istanbul 13th 25th Europe

Dubai 14th 8th Africa/Middle East

Doha 17th 12th Africa/Middle East

Source: SportBusiness Ultimate Sports Cities.

36 Economic Impact of sport in Dubai


Istanbul Baku Doha Dubai Singapore Melbourne Auckland

Population Population Population Population Population Population Population


14.2m 2.1m 0.8m 2.2m 5.4m 4.2m 1.5m

Key events Key events Key events Key events Key events Key events Key events
World Indoor European Games 2015 Handball World Rugby Formula 1 Cricket World Cup Cricket World Cup
Athletic 2015, Formula World Sevens Series, Grand Prix, WTA 2015, Australian and FIFA U20
Championships 1 Grand Prix Championship, ATP and WTA Championships Open Tennis World Cup (2015)
2012 from 2016, 2017 Cycling Road Tour tennis, Dubai
Islamic Solidarity World World Cup, AFC Key venues Key venues Key venues
Key venues Games, UEFA Championships Asian Cup 2019, National Stadium Melbourne Cricket Eden Park, QBE
Istanbul Park, Euro 2020 host 2016, 2019 World Expo 2020 Dubai and Indoor Ground, AAMI Stadium, Vector
Atatürk Olympic location Championships in Stadium (both at Park, Etihad Arena
Stadium, Türk Athletics, FIFA Key venues The Singapore Sports Stadium
Telekom Arena Key venues World Cup 2022 Sevens Stadium, Hub)
National Stadium Dubai International
Key venues Stadium, Hamdan
Aspire Academy, Sports Complex
Khalifa
International
Stadium

Source: UN (population); Deloitte analysis.

Economic Impact of sport in Dubai 37


section 5: city benchmarks

Dubai’s skyline

Figure 25: Summary benchmark findings – Events Overview


London and Melbourne are the two
City Regular One-off Sports Total leading benchmark cities in terms of
annual events events teams hosting sports events. Both have a
strong mix of regular annual events and
Auckland one-off events, as well as being home
to a host of leading professional sports
Baku teams. Along with Singapore, Dubai
performs well in terms of regular annual
Doha events, thanks largely to its global series
of events in golf, rugby and tennis. Doha
Dubai is one of the leading benchmark cities in
terms of one-off events, having focused
Istanbul more on hosting world championships
in a range of sports, whilst Los Angeles
London has a particularly strong domestic
sports team contingent.
Los Angeles
In order to be successful at hosting
Melbourne major sports events, a city requires
world-class facilities and infrastructure.
Singapore Again, London and Melbourne are
the two stand-out cities, with both
Key: Strong Weak Source: SportBusiness Ultimate Sports Cities; Deloitte analysis. possessing an abundance of purpose-
built, accessible and atmospheric

38 Economic Impact of sport in Dubai


sporting venues. Dubai has a relatively Figure 26: Summary benchmark findings – Facilities
small number of venues compared with
the other benchmark cities, although City Number and Capacity Location Total
their close proximity to one another and quality of stadia
the ease of access from all areas of the
city is a significant advantage. Auckland

In drawing these comparisons, it must Baku


be remembered that Dubai is a young
city, the UAE only being founded in Doha
1971, yet in the short time period
since has made significant progress in Dubai
developing its sporting infrastructure.
In comparison with the benchmark Istanbul
cities, which in some cases have
developed over a longer period, this London
demonstrates the enormous potential
that exists in Dubai. Los Angeles

Melbourne

Singapore

Key: Strong Weak Source: SportBusiness Ultimate Sports Cities; Deloitte analysis.

Economic Impact of sport in Dubai 39


section 5: city benchmarks

Auckland Baku 2015 provides a legacy of Istanbul


Having lost some high-profile events to infrastructure improvements and world- Istanbul has shown a strong appetite
other cities in the early 2000s, Auckland class venues, with 11 permanent new for bidding for, and hosting, major
has experienced a resurgence in major and renovated venues including the sports events. Sport is a key part of
event activity in recent years thanks in showpiece 68,000 capacity National the Turkish Government’s 2023 Master
part to a more aggressive bid strategy. Stadium. It is also hoped that the Plan, and despite Istanbul missing out
Games will encourage sports potential on the 2020 Olympic Games (its fifth
Auckland Tourism Events and at a grass roots level. Olympic bid in less than 20 years), there
Economic Development is a council- is a strong alignment of stakeholders
controlled organisation which plays a In 2016, Baku will host the Formula 1 and a growing pool of event-hosting
significant role in attracting, planning European Grand Prix, and it is one of experience.
and bidding for major sporting events. the thirteen host cities for UEFA EURO
Its event strategy is driven by economic 2020, having been awarded three Major events hosted by Istanbul over
development, tourism, quality of life group games and one quarter-final. recent years include the 2010 Basketball
and international exposure, and follows It will also host the Islamic Solidarity World Championship, the 2012 World
a ‘portfolio’ approach which focuses Games in 2017. Short Course Swimming Championships
on outcomes delivered over multiple and the 2012 World Indoor Athletics
events, rather than per event. A strong Championships. It also hosted a
emphasis is placed on the feasibility Doha Formula 1 Grand Prix from 2005 to
stage, assessing benefits and costs Doha has built up a strong event- 2011, and the season-ending WTA
plus the likelihood of success – it hosting pedigree over recent years, its Championships from 2011 to 2013.
reportedly has close to an 80% success strategy being to target one-off events
rate on submitted bids. rather than focus on global series Its key facilities include Istanbul Park,
events. Atatürk Olympic Stadium and the Türk
Auckland has targeted a broad variety Telekom Arena.
of sports, with recent events staged This strategy has resulted in Doha
including the IRB Rugby World Cup hosting world championships in a
(2011), Volvo Ocean Race (2012), ITU wide range of sports, particularly those London
World Triathlon Championships (2012), that feature in the Olympic Games. London is one of the world’s pre-
World BMX Championships (2013), Since 2008, it has staged world eminent cities for hosting sports events.
World Softball Championships (2013), championships in volleyball, swimming Its flagship annual events include
ICC Cricket World Cup (2015) and FIFA and handball, and in 2016 will host Wimbledon, the Emirates FA Cup
U20 World Cup (2015). cycling’s Road World Championships, Final and the London Marathon, and
with the 2019 World Championships in in recent years it has hosted world
Auckland’s Eden Park is New Zealand’s Athletics and the 2022 FIFA World Cup championships in sports such as
national sports stadium and hosts further on the horizon. badminton, canoeing, gymnastics and
sports such as cricket, rugby and modern pentathlon.
football. Over 0.5m people attend Doha has a number of high class
matches and functions at Eden Park venues. The Doha Asian Games in London is also a leading destination
each year. 2006 was the catalyst for much of the for overseas sports properties looking
improvement in sporting infrastructure, to expand into other territories, as
with a reported capital expenditure of evidenced by its staging of regular
Baku $2.8 billion for 30 new-build venues. season games in two of America’s
Baku is one of Europe’s rapidly These included the Khalifa International leading leagues, the NFL and NBA, as
emerging cities on the global sports Stadium and the Aspire Academy for well as the Tour de France.
event stage. In recent years it has Sports Excellence, which is the world’s
hosted the World Amateur Boxing largest indoor sports facility. London has a well-established
Championships (2011) and FIFA U17 approach to bidding and delivering
Women’s World Cup (2012), and more Qatar’s hosting of the 2022 FIFA World major events, with key stakeholders
significantly it hosted the inaugural Cup will provide more world-class aligned and working in unison. Such
European Games in 2015. stadia for the city, although these will stakeholders include London &
present major challenges for Doha in Partners, which hosts the city’s major
terms of legacy and future utilisation. events team, Transport for London,
local boroughs and venue owners.

40 Economic Impact of sport in Dubai


London has a well-developed sports
infrastructure, boosted by the legacy
of successfully staging the Olympic
and Paralympic Games in 2012 which
provided a number of new world-
class sport venues. These have led
to other additions to its sporting
calendar such as the 2015 EuroHockey
Championships, the 2015 Canoe
Slalom World Championships and the
2017 World Championships in Athletics.

As well as the remaining Olympic


venues, London’s other leading venues
include Wembley Stadium, Twickenham
Stadium and the All England Lawn
Tennis Club. Sports teams based in the
city also provide quality venues such
as Lord’s Cricket Ground and the
Emirates Stadium.

Los Angeles
Los Angeles is one of the leading
sporting cities in the United States. The Jumeirah Emirates Towers
US Olympic Committee has chosen Los
Angeles as its candidate for the 2024
Olympic Games which, if successful, Melbourne public. In 1991, it established a
will be a catalyst for significant Melbourne has built an outstanding specialist, not-for-profit organisation
improvements in the city’s sporting sporting calendar that balances major to target and attract major sporting
infrastructure in the coming years. one-off events such as the 2006 and cultural events, the Victorian Major
Commonwealth Games, the 2011 Events Company (“VMEC”). VMEC
Los Angeles is one of four cities to President’s Cup Golf and the 2015 ICC plays a key role in Melbourne’s event
have hosted the Olympic Games twice, Cricket World Cup, with annual events landscape, acting as the link between
most recently in 1984, and has made such as the Formula 1 Grand Prix, the all stakeholders, and is now regarded
more bids for Olympic Games than Spring Racing Carnival and Australian as one of the world’s leading events
any other city. In 1994 it hosted eight Open Tennis Championships. acquisition groups.
matches including the Final in the FIFA
World Cup at the Rose Bowl Stadium, This provides year-round content and Victoria’s major events programme is
and also hosted matches in the 1999 ensures that sports federations, athletes currently being independently reviewed
and 2003 Women’s World Cups. Other and visitors return year-on-year. Its for the first time in 20 years, with
events held include seven Super Bowls major events calendar is estimated the possibility of an Olympic Games
and the 2015 Special Olympics. to attract over 230,000 international bid for 2032 also being discussed.
visitors to the state of Victoria every year This demonstrates that even the
Los Angeles is also home to a number – representing 23% of all international most established cities are striving to
of professional sporting teams in sports visitors – and delivers an estimated maintain their position and refresh their
such as baseball, basketball, football annual economic benefit of $1.1 billion. strategies.
and ice hockey. Leading venues include
the Staples Center, home of the city’s One of the key factors in Melbourne’s Melbourne’s most iconic sporting venue
two NBA basketball teams and one success is the support of the State is the Melbourne Cricket Ground, and
NHL ice hockey team, the Dodger Government of Victoria, who view almost 4m spectators attend over 80
Stadium (baseball) and the StubHub sporting events as an opportunity to events at the venue each year.
Center (football). showcase Victoria to the world stage
and create a legacy for the Victorian

Economic Impact of sport in Dubai 41


Section 5: city benchmarks

Singapore
Singapore is one of Asia’s leading
sports cities. Its hallmark events
include the Formula 1 Grand Prix,
which provided the first night race on
Facilities
the Formula 1 calendar, and the WTA Strategy and infra-
Championships, which Singapore will
host until at least 2018. Singapore also
structure
hosted the inaugural Youth Olympic
Games in 2010.

In June 2014, a state-of-the-art, fully Political


integrated sports, entertainment and Event
and
lifestyle hub – the Singapore Sports Hub
delivery
– was opened. At its centrepiece is a social
new 55,000-capacity National Stadium
which is planned to host sports such as
rugby, cricket, football, and athletics,
and it also contains facilities such as an
Indoor Stadium, Aquatics Centre and an
outdoor Water Sports Centre.

The venue was built at a cost of


$1.3 billion and is one of the largest
sporting infrastructure Public-Private
Partnership projects in the world. • A designated body within a national, Facilities and infrastructure
One of the key features of the project federal or local government which • World-class venues and facilities
plan was to have a comprehensive, targets ‘best fit’ events and assesses
year-round sporting calendar, with the what benefit/impact they can have • Importance of wider infrastructure
private sector consortium’s strategy for the city such as transport links and
guaranteeing at least 90 event days accommodation
at the National Stadium and 46 at the • Emphasis on ‘winnability’ of a bidding
Indoor Stadium. contest during feasibility stage • Consideration of legacy usage/
utilisation of venues – temporary
• Long-term and ongoing relationships seating and structures can be used
Conclusion with event stakeholders and sporting as an alternative to ‘white elephants’
bodies
We have selected the following critical • Expo 2020 Dubai and its legacy
success factors of relevance to Dubai provides a big opportunity for sport
which are features of some, or all, of the Political and social facilities
above case studies. • Sport is viewed as an important tool
to raise living standards of the local
population Event delivery
Strategy • Event production expertise
• A cohesive strategy which provides • Political will and commitment to
a blueprint to guide major events establish a global reputation in sport • A coordinated and collaborative
selection and for all stakeholders to approach in planning for and
work towards to help achieve a city’s • Strong financial support from national delivering major events, with co-
vision and local government operation between the municipality,
event owners, local boards, transport
• Maintaining a calendar of regular • A passionate and enthusiastic agencies, venues etc.
events supplemented by one-off major public in relation to attending and
events on a more occasional basis supporting sport events

42 Economic Impact of sport in Dubai


1,000,000+
aggregate attendance at sports
events in Dubai each year

Economic
DP World Impactthe
Tour Championship, of sport
last in Dubai
tournament 43 Tour’s Race to Dubai
in the European
section 6: dubai case studies

Golf

This case study measures the Figure 27: Estimated economic impact • Golf’s direct economic impact, i.e.
economic activity stimulated of Dubai’s golf industry ($m) the amount of additional spending
directly by expenditure from overseas it creates, is $131m,
associated with golf in Dubai c.30% of the total economic impact
(golf clubs, associations, events) (excluding indirect and induced
and golf consumers (spectators, 38 impacts again).
2
international visitors), which
then flows through the Direct economic
economy to create activity in impact Core industries
other related industries. • Clubs are at the heart of the golf
Total: 131
80 industry, providing the hub for
11 major events to be staged and for
Overview of golf in Dubai leisure participants – both local and
• Golf was first played in Dubai in the international – to play. These are
mid-1970s. Since then the industry typically operated by management
has grown to become an important companies, with revenues generated
part of the economy, with Dubai now through membership, green fees and
20
a leading destination for international food and beverage sales.
events and golf tourism.
38 92 • Major events are another key part
• Dubai features a number of world- Gross of the core industry, both in terms
class facilities and courses, hosts expenditure of economic contribution and in
several international golf events, helping to raise the profile of Dubai
including the prestigious climax to the Total: 270 internationally.
European Tour, the DP World Tour
Championship and the Omega Dubai • Suppliers whose sole clientele are
120
Desert Classic, and attracts visitors golf-related (e.g. manufacturers or
from around the world to play or distributors of golf equipment) are
watch the sport. Events Facilities - golf clubs also classed within the core industry.
People Other stakeholders
• The golfing ‘ecosystem’ in Dubai - international
visitors
essentially comprises: Ancillary industries and suppliers
Source: Repucom; Deloitte analysis. • Investors provide the capital for the
- Core industries such as golf construction of new courses and
clubs/courses, associations and the expansion of existing courses,
events; and Economic impact of golf usually in conjunction with real
• The gross expenditure of golf in estate developments. The value of
- Ancillary industries and Dubai amounts to c.$270m p.a. properties located adjacent to golf
suppliers. This amounts to c.25% of the courses are often enhanced.
total expenditure on sport in Dubai
(excluding indirect and induced • Golf attracts international visitors
impacts which have not been (tourists) to Dubai, either as a primary
attributed to specific sports). motivation or as a secondary activity
whilst in Dubai.

44 Economic Impact of sport in Dubai


• Suppliers which supply other Figure 28: Number of courses and population per course for Dubai and a
industries in addition to golf (e.g. selection of European countries 2013 (‘000s)
retailers, food and beverage
3,736
suppliers) support the golf industry. 3,000
2,984 Golf courses
Population
per course
2,800
Benchmarking

This section provides some contextual 600


583
analysis of Dubai’s golf industry in
relation to some European countries. 400
345

Population per course 200 220


112 134 121 200 Note: The European average is
86 based on 31 countries across
• With a population of 2.2m, Dubai’s 23 20 Europe. Data for Turkey relates
89 87 11 10
11 courses (at nine locations) equate 0
to 2012.

to a population per course of around UK & Ireland France Spain European Portugal Turkey Dubai Cyprus Source: KPMG; Deloitte
average analysis.
200,000. When the four courses
currently under construction are
completed, this will fall to around • It should be noted that Dubai is Events
147,000. a city which has a much smaller
geographical area than the majority of Overview
• To put this into context, popular golf European countries in the benchmark • Dubai has become a major player
countries such as France and Spain group, and therefore a relatively low in the international golf landscape
have 112,000 and 134,000 people number of courses is expected. thanks to the hosting of leading
per course respectively, although events at its world-class facilities.
Turkey has a significantly lower • Dubai’s courses are relatively The European Tour promotes its
concentration, with 3.7m people per expensive, and therefore target those entire schedule around the ‘The Race
course (see Figure 28). residents with higher disposable to Dubai’, a season-long competition
income. As a result, there may be a spanning 47 tournaments in 26
• The UK & Ireland (combined) has gap in the market for cheaper, more countries worldwide (2015 season),
by far the lowest population per affordable courses. the culmination of which is the DP
course of the benchmark group, World Tour Championship.
with 23,000. Its c.3,000 courses is
over five times greater than the next Participation rates • Other significant golf events staged
highest country, France. • Dubai’s 6,000 golfers equate to include the Omega Dubai Desert
a participation rate of 0.26%. As Classic, which has taken place since
• Other worldwide leading golf shown at Figure 29, this falls in the 1989, and the Omega Dubai Ladies
destinations, the USA (c.16,000 middle of the benchmark group, with Masters, the first full Ladies European
courses) and Japan (c.2,500 courses), participation rates exceeded in the UK Tour event ever to be played in the
have populations per course of around & Ireland (1.85%), Spain (0.68%) and Middle East.
20,000 and 50,000 respectively. France (0.65%), but lower in Cyprus
(0.17%), Portugal (0.13%) and Turkey
(0.01%), the latter being markets
which mainly cater for golf tourism.

Economic Impact of sport in Dubai 45


dubai case studies · golf

Figure 29: Number of players (‘000s) and participation rates for Dubai and a Gross expenditure
selection of European countries 2013 • Revenues are generated primarily
through membership, green fees,
1,253
1,200 Players
2.0% and food and beverage. The total
1.85%
Participation rate
annual revenue of Dubai’s nine golf
1.8%
clubs is $120m, classified as gross
1,000
1.6% expenditure since the majority is
spending by local residents. The
1.4%
800 overseas aspect of the spending –
1.2% which contributes to direct economic
600 1.0% impact – amounts to $11m.

423 0.8%
400 0.73% 0.68% 0.65%
0.6% Academies and training camps
314 • Dubai’s golf clubs are also home to
0.4%
200 0.26% a number of academies and training
142
0.17% 0.13% 0.2% schools, such as the Dubai Golf
6 1 14 6 Academy at the Emirates Golf Club
0
0.01% and the Butch Harmon School of Golf
UK and European Spain France Dubai Cyprus Portugal Turkey
Ireland average at the Els Club. These provide amateur
golfers with world-class teaching
Note: The European average is based on 31 countries across Europe. Data for Turkey relates to 2012. Source: KPMG; Deloitte analysis. facilities and high quality coaching.

Direct economic impact Facilities • Dubai also provides a base for elite
• Golf events generate an estimated golfers from around the world to
$80m of direct economic impact Golf clubs train and take advantage of the
for Dubai per annum. The biggest • The Emirates Golf Club, host of the favourable winter weather conditions.
components of this are the DP World Omega Dubai Desert Classic and For example, to prepare for the start
Tour Championship and the Omega Omega Dubai Ladies Masters, was of the 2015 season, players such
Dubai Desert Classic. the first all-grass championship golf as Martin Kaymer, Justin Rose and
course in the Middle East when it Henrik Stenson based themselves
• The majority of the impact is derived opened in 1988. This was soon at the European Tour Performance
from spectators visiting the events, followed by the opening of the Dubai Institute at Jumeirah Golf Estates, and
with contractors the next most Creek Golf and Yacht Club in 1992. Rory McIlroy is resident in the emirate.
significant group. Other contributors
include hospitality guests, event • There are now nine golf clubs – 11
management, players and their courses – in Dubai, with a further four
entourages, media and volunteers. clubs planned to open by the end of
2017. The golf clubs have a range
of owners and management models
Gross expenditure (see Figure 30).
• In gross expenditure terms, which
measures all expenditure relating to • There are a range of other amenities
the event regardless of source, the at the clubs such as shops, bars and
events generate an estimated $92m. restaurants. Some clubs, such as the
Emirates Golf Club, operate as a wider
leisure facility, offering pool and gym
facilities, tennis and padel courts and
a spa.

DP World Tour Championship at Jumeirah


Golf Estates

46 Economic Impact of sport in Dubai


Figure 30: Golf Clubs in Dubai Figure 31: Estimated economic impact
of golf club facilities in Dubai ($m)
Golf clubs Owner (Operator)
Gross expenditure 120
Al Badia Golf Club Al Futtaim Group (Intercontinental)
Arabian Ranches Golf Club Emaar Properties (Troon Golf) Direct economic impact 11 Note 1: Golf travel highlights
2013, KPMG.
Dubai Creek Golf and Yacht Club Dubai Golf (Wasl Asset Management Group)
Emirates Golf Club Dubai Golf (Wasl Asset Management Group)
Jebel Ali Golf Resort and Spa JA Resorts & Hotels
Jumeirah Golf Estates Government of Dubai (Self-managed) airlines (Emirates), hotels, restaurants
The Address Montgomerie Emaar Properties (Emaar / Troon Golf) and retailers, in addition to the
The Els Club Dubai Sports City (Troon Golf) spending in the golf clubs.
The Track Meydan Meydan Group (Troon Golf)
Dubai Trump International 1 DAMAC Properties / Trump Organisation Direct economic impact
Dubai Golf City 1 Madeed Properties • Dubai’s 16,000 international golf
Trump World Golf Club Dubai 1 DAMAC Properties / Trump Organisation visitors per year play an average of
Dubai Hills 1 Emaar Properties 2.5 rounds each. The associated
‘on-course’ expenditure (e.g. green
Notes: 1. Golf clubs which are under construction. Source: Deloitte analysis. fees, food and beverage) has been
excluded from the calculation below,
People Golf tourism as this has been captured within the
• Dubai is one of the leading Facilities sub-section.
Employment destinations for golf tourists, thanks
• Dubai’s core golf industry employs to its facilities, weather conditions and • Of Dubai’s international golf visitors,
c.1,800 people in many different raised profile due to the successful each spends an average of five nights
services and organisations. Golf hosting of international events. in Dubai, and typically spends c.$190
clubs account for the majority of this per day on accommodation with
employment. • Another attraction is the close additional spend of c.$220.
proximity of the golf clubs in
• It should be noted that event staff Dubai, thanks to its relatively small • The average cost of flights is c.$1,350,
are not included within the above geographical area, providing ease of of which it is estimated that 27% are
figures, but these will also add to the access within a short time. with Dubai-based airline Emirates. All
employment numbers (largely on a other flight costs do not have a direct
temporary basis). • In a recent study1, Dubai was ranked impact on the Dubai economy.
the joint sixth (along with Abu Dhabi)
• Golf also supports employment in most popular travel location for golfers, • Based on these assumptions,
several ancillary industries in the with only Spain, Portugal, Scotland, international golf visitors generate an
supply chain, from airline and hotel Turkey and Ireland ahead of it. overall direct economic impact
staff through to grass seed suppliers. of $38m.
• Golf tourists provide a boost to
Participation Dubai’s economy through spending
• Around 440,000 rounds of golf are on goods and services such as Other stakeholders
played in Dubai each year, c.40,000
of which are played by c.16,000 Figure 32: Estimated economic • Other stakeholders in Dubai’s
international visitors. impact of golf tourism to Dubai golf industry include associations,
manufacturers and distributors and
• The remaining rounds – c.400,000 freelance professionals.
– are booked by the 6,000 golfers
resident in Dubai, and played • We estimate that these organisations
by them and their visitors. The contribute gross expenditure of

$38m
gross expenditure of these local c.$20m and direct economic impact
participants is captured within the of $2m to Dubai’s economy.
Facilities sub-section (golf clubs).

Source: Deloitte analysis.

Economic Impact of sport in Dubai 47


dubai case studies

Horseracing

Godolphin Figure 33: Dubai World Cup Carnival


Founded by His Highness Sheikh – partners
Mohammed in 1992, Godolphin quickly
made its mark on global racing. Event owner and organiser
Following the establishment of training
yards in Newmarket, UK, it developed Dubai Racing Club
innovative training methods which saw
horses based in the UK for the summer Partners
months before moving to Dubai in the
winter to benefit from the emirate’s Al Basti Equiworld; Al Tayer Motors;
climate. Although no longer involving the DP World; Emirates Airline; Emirates
wholesale movement of all Newmarket Global Aluminium; Gulf News; IPIC;
based horses, the practice continues to Longines; Meydan Sobha; The Saeed
this day. and Mohammed Al Naboodah Group

Although Godolphin employs trainers in Source: Deloitte analysis.

a variety of locations around the world,


Horseracing at Meydan two of its three main trainers, Saeed
bin Suroor and Charlie Appleby, have Darley
bases in both Dubai and Newmarket, Darley is His Highness Sheikh
Dubai is synonymous with the whilst John O’Shea is based in Sydney, Mohammed’s global thoroughbred
sport of horseracing, being Australia. The Al Quoz Stables in breeding operation which currently
regarded as one of the world’s Dubai are the operation’s international houses stallions in six countries around
leading racing destinations. headquarters where bin Suroor is the world. Darley’s headquarters are
Due to the passion and based, with Appleby occupying at Dalham Hall Stud, Newmarket,
commitment to the sport the Marmoom Stables. Both offer which was initially purchased by His
shown by His Highness Sheikh world-class training facilities, with Al Highness Sheikh Mohammed in 1981
Mohammed the emirate hosts Quoz in particular mirroring Dubai’s since when it has developed from a
one of the leading international development having grown from a facility with one stallion and c.10 staff
racing events, the Dubai World small office surrounded by desert to a to a seven stallion/210 mare operation.
Cup Carnival, and through the state-of-the-art facility located close to When Godolphin’s employees are
Godolphin racing and Darley Downtown Dubai. also included, these two Dubai racing
breeding operations Dubai entities employ over 700 individuals in
has a truly global reach. As The Godolphin facilities in Dubai Newmarket alone.
mentioned in the Outbound involve a significant level of capital
Investment sub-section on investment and employ large numbers
page 35, horseracing therefore of staff both to care for the hundreds The Dubai World Cup
represents one of Dubai’s most of thoroughbred racehorses in training The horseracing world focuses on Dubai
significant investments in and maintain the facilities to world-class at the end of March, when Meydan
global sport. standards. Perhaps most importantly racecourse hosts the Dubai World Cup,
Godolphin plays an ambassadorial role the most valuable race in the world.
for Dubai globally, being synonymous
with international competition and The Dubai World Cup Carnival, which
representing the emirate to the world. runs from January to March with fixtures
held at Meydan each week, attracts

48 Economic Impact of sport in Dubai


Dubai World Cup at Meydan

leading horses, trainers, owners and 30 countries have been represented equivalent Dubai World Cup Carnival
jockeys from around the world but it is by runners at the Dubai World Cup figure of c.1,700 demonstrates the truly
the Dubai World Cup meeting that is Carnival from 2004 to 2015, with 14 international nature of the event.
the culmination of the preceding fixtures being represented at the 2015 Dubai
and one of the highest grossing sporting World Cup fixture. As a comparison, A comparison with other leading
events from an economic perspective the leading British and European global horseracing events is included at
held in Dubai. meeting, Royal Ascot, has hosted c.640 Figure 34.
international runners since 2006, so the
The Dubai World Cup has been run
each year since 1996, moving to Figure 34: Comparison with other leading global horseracing events
Meydan, the world’s largest integrated
racing facility, in 2010. The nine race Event Attendance Races Prize
card on World Cup night culminates in money
the feature race itself, which with a total
prize fund of $10m is the most valuable Dubai World Cup 80,000 9
A
$30m
race in the world. Breeders Cup (various locations, USA) 59,000 B
13 $26m
Prix de l’Arc de Triomphe (Longchamp, France) 50,000 C
17 $10m
The Dubai World Cup is one of the British Champions Day (Ascot, UK) 29,000 D
6 $6m
most important events hosted from Melbourne Cup (Melbourne, Australia) 101,000 E
10 $6m
an economic impact perspective, with
a sizeable economic footprint (gross Key: Note: Information represents most recent
A Includes five Group 1 races. renewal of each fixture for which data available.
expenditure) and additionality (direct B All Grade 1 races over two days. If a multi-day event, attendance at feature race

impact), on a par with the world’s other C Eight Group 1 races over two days.
D Four Group 1 races.
day is given.

leading racing events due to the high E One Group 1 race on Melbourne Cup day of Source: Deloitte analysis.
a total of eight at the Melbourne Cup Carnival.
proportion of international visitors and
participants.

Economic Impact of sport in Dubai 49


dubai case studies

Racket sports

Dubai Duty Free Tennis Championships

Dubai is well known as the Tennis advocated that due to the calibre of
location of one of the leading The Dubai Duty Free Tennis the tournament, it should be upgraded
tennis tournaments in the Championships have taken place each to ATP Masters 1,000 level. It is one of
world, the Dubai Duty Free year in February since 1993, when it the few worldwide to offer equal prize
Tennis Championships, but in was titled the Dubai Men’s Open. The money to men and women.
recent years has also developed Women’s tournament commenced
as a leading destination for in 2001, and 2009 saw the Men’s The Dubai Duty Free Tennis
other racket sports, notably Championships granted ‘ATP 500’ Championships is one of Dubai’s
badminton, squash, table tennis, status with the Women’s tournament premier international sporting events,
and more recently padel tennis. gaining WTA ‘Premier 5’ accreditation drawing sizeable attendances each year
due to its success and popularity on the with significant numbers of overseas
professional circuit. This reputation is visitors. As such the tournament has a
reinforced by the Men’s Championships notable economic impact, both direct
being voted ATP World Tour 500 and gross.
tournament of the year by the players
11 times in the past 12 years. In 2015 A development that could increase
world number one Novak Djokovic the economic contribution of

50 Economic Impact of sport in Dubai


Badminton
The Badminton World Federation
(“BWF”) Dubai World Superseries Finals,
staged at the Hamdan Sports Complex
in December, are the culmination of 12
qualifying tournaments held worldwide
over the course of the year, with the top
eight ranked players in each category
(men’s and women’s singles and
doubles, and mixed doubles) invited to
compete for a $1m prize fund.

Held for the first time in Dubai in 2014


when it attracted 5,000 spectators over
five days, the event will take place for
the next three years up to the 2017
edition. Whilst the main rationale for
the first few years of the event is to
promote Dubai and highlight its sporting
capabilities and attributes, the event
budget and expenditure of spectators
are estimated to have resulted in gross
expenditure in excess of over $2m.

Whilst not a measure of economic


impact per se, total sponsorship value
of the inaugural event was estimated
as $33m, the components of this are
the tournament would be further Figure 35: Dubai Duty Free Tennis shown in Figure 36.
partnerships with non-Dubai entities, Championships
building on the major new sponsorship Dubai also sponsors the BWF
with US-based sponsor J.P. Morgan Attendance 120,000 Destination Dubai Rankings,
in 2015. demonstrating the emirate’s
International c.20,000 commitment to the promotion of the
2014 marked the establishment of the visitors (est.) sport throughout the year. The top
International Premier Tennis League eight ranked players come to the Finals
(“IPTL”), with Dubai hosting the final leg Prize money (total) $5m to compete in men’s and women’s
of the series in December as the home singles, doubles and mixed doubles.
venue of one of the four franchises, Event owner and Dubai Duty Free
the UAE Royals. The franchise licenses organiser
are for a 10 year period, with budgets
capped at $10m p.a. for each. The Partners J.P. Morgan; Rolex; Al
event drew a total attendance of 14,000 Nabooda Automobiles; Lacoste;
to the Hamdan Sports Complex. ENOC/Dugas; Emirates; Gulf News

Source: Deloitte analysis.

Economic Impact of sport in Dubai 51


dubai case studies · racket sports

Table Tennis
The International Table Tennis
Federation (“ITTF”) World Tour Grand
Finals were staged in Dubai in January
2014, with a $1m prize fund for the
season-ending tournament, and the
next in the series of leading events, the
ITTF World Team Cup, was also held in
January 2015. The UAE will also host
the Asian Table Tennis Union’s Asian
Cup in April 2016.

These events are one way in which


Dubai is playing an increasingly
influential role in international table
tennis, the sponsorship of the Chinese
national team and the hosting of the
Star Awards, the ITTF’s annual awards
show, being other examples. The
Chinese national team sponsorship
BWF Dubai World Superseries Finals 2014 at the Hamdan Sports Complex was estimated as having a media
value in China of $8.3m for Dubai in
2014, covering 17 ITTF tournaments
Figure 36: BWF Dubai World Superseries Finals 2014 – total sponsorship worldwide. This will have increased
value estimate ($m) further in 2015 following the World
Championships held in China.
Value type Description $m
To increase participation amongst the
Tangible value Television 24.6 general public the ‘Ping Pong Dubai’
Online 0.8 initiative was also launched to attempt
Collateral and other rights 0.3 to integrate table tennis into Dubai’s
Additional components 0.9 sporting fabric across all sections
of society. Free to play tables were
Intangible value added Additional value brought to naming 6.4 installed and tournaments established
rights partner brand through association in a variety of locations across the city,
with the event with monthly Ping Pong Dubai nights
also being staged.
TOTAL 33.0

Source: Repucom 2015 BWF Destination Dubai World Superseries Finals Evaluation February 2015. Squash
Squash is another popular racket sport
in the emirate, with a sizeable playing
Whilst this is showcasing badminton There are c.1,500 badminton players population.
at the elite level in Dubai, to increase affiliated to clubs in addition to a
participation at grass roots the ‘Shuttle number of unaffiliated participants in Leading professional squash events
Time Dubai’ initiative was held in Dubai. have also been staged, for example
schools and clubs during the year in November 2014 the Professional
and at Dubai Sports World. Leading Squash Association (“PSA”) Dubai
professionals officially launched the Squash Cup was held at the Nad Al
programme which aims to promote Sheba complex. From 2016 to 2018
badminton as a sociable and fun way the emirate will also host the PSA Dubai
to keep fit and active regardless of age, World Series Finals for the top eight
gender and fitness. men and women, and will sponsor the
PSA Road to Dubai Standings.

52 Economic Impact of sport in Dubai


Ping Pong Dubai

Conclusion
Outside of the Dubai Duty Free Tennis
Championships which is one of Dubai’s
leading sporting events, including
through its economic contribution, at
present most racket sports have limited
direct economic benefit or additionality.
This is understandable due to their very
recent arrival as events in the emirate,
hence they have not yet had time to
fully embed themselves into the sporting
calendar and generate interest from
overseas in terms of investment and
Padel tennis spectators.

If allowed to develop and attract


Padel tennis has led to the formation of a National increased investment, media exposure
Padel tennis, a sport similar to tennis Federation for the sport, the UAE and attendances, the badminton
but played on an enclosed court of Padel Association. Padel tennis now and table tennis events have a good
approximately half the size of a regular plays an important part in the annual opportunity to integrate fully into Dubai’s
tennis court, is played extensively in Latin Ramadan tournament at the Nad Al sporting landscape, particularly due to
America and Spain but in recent years its Sheba complex, which in 2014 involved the emirate’s increasingly strong links
popularity has extended to a number of 16 overseas players with an additional with China and Asia where these sports
other locations including Dubai. tournament for Dubai residents. are already highly popular. Strong
participation figures for racket sports at
With courts established at a variety of In October 2015, the Nad Al Sheba Dubai Sports World in the summer of
locations in the emirate, including at Complex will host the Dubai Padel 2015 demonstrate a growing popularity
Kite Beach, Emirates Golf Club and Masters, one of five stops on the World among both men and women.
the Nad Al Sheba complex, the sport Padel Tour.
is becoming increasingly popular and

Economic Impact of sport in Dubai 53


dubai case studies

Cricket

Cricket is one of the most The success achieved by Dubai (and the
popular sports in Dubai, thanks other UAE host cities, Abu Dhabi and
to the significant proportion Sharjah), particularly the passion shown
of residents and workers from by fans, will make Dubai an attractive
South Asia, as well as the city destination if the BCCI wishes to stage
having played host to a number matches outside India in the future.
of elite international matches
over recent years. In 2016 the inaugural Masters
Champions League T20 tournament
will take place across the UAE’s three
International cricket stadia, with teams comprised of some
As discussed in the Facilities section, of cricket’s greatest former international
Dubai Sports City contains one of players. Dubai’s strategic position as
the leading cricket training facilities in an international hub is a key factor in
the world – the ICC Academy. It also attracting tournaments such as this.
houses the Dubai International Stadium,
which has hosted Pakistan international Such exposure to elite international
matches since 2009, including 32 cricket has raised the profile of the
Twenty20 Internationals (more than sport in Dubai. Continuing to stage
any other venue globally), 17 One Day Pakistan and other international
Internationals and nine Test Matches. matches, coupled with the existence
One Day Internationals and Twenty20 of state-of-the-art facilities, provides
contests are better attended than Test a great opportunity to increase
Matches, generating higher levels of participation levels in the coming years.
gross expenditure.

The Dubai International Stadium also Domestic cricket


hosted seven matches of the Indian Whilst domestic cricket is popular and
Premier League (“IPL”) in 2014, which one of the most played sports, growth
attracted unprecedented levels of in the domestic game is restricted by
attendance. Each game was reported the limited number of grass pitches – Afghanistan, Pakistan and India are
to be a sell-out, amounting to 125,000 there are only around 15 in the UAE. A employed and hence cricket has
spectators across the five match days. focus on increasing this level of supply a professional element. There is
Hosting fees paid by the IPL represent would be required to support growth. considerable press coverage too, with
additionality to Dubai as the IPL also bore certain games being televised.
the matchday costs inside the stadium. The Emirates Cricket Board and
affiliates run tournaments at these Cricketers can develop their skills
The Board of Control for Cricket in India venues. Participating teams include at c.15 private cricket academies in
(“BCCI”) commissioned a study that corporates (e.g. financial, healthcare Dubai. The total footfall at Dubai Sports
estimated the total economic output companies) and SMEs, who see City’s cricket academies was c.240k in
for the 20 IPL matches in the UAE to cricket as a vehicle for good corporate 2014, and is projected to rise to c.270k
be $75m. IPL’s broadcast reach to a social responsibility – there are in 2015. Cricket is also played in c.100
worldwide audience over television, c.200 registered corporate teams schools, with 5,000 children actively
internet and mobile, provided further with approximately 4,000 cricketers. playing the game.
benefits to Dubai. Cricketers from countries such as

54 Economic Impact of sport in Dubai


Dubai International Stadium at Dubai Sports City

There is limited Emirati involvement The UAE national team The UAE pioneered the take-up of
in cricket at present, with most The UAE national cricket team has women’s cricket in the Gulf through
participants originating from South been an Associate Member of the ICC fielding a team in the 2007 Asian
Asia. However, a focus of the ICC since 1990. Having participated in its Cricket Council Women’s Tournament,
is to help countries increase their first Cricket World Cup in 1996, it had and has subsequently continued to
pool of indigenous cricketers, which to wait almost two decades before promote women’s participation in the
could assist in this area in the longer achieving qualification for its next World game.
term. Dubai is included in an Emirati Cup in 2015.
Development Programme which
commenced in September 2015. Despite failing to win a match at the
2015 tournament, the team produced
some encouraging performances,
narrowly losing to Zimbabwe and
Ireland, and has also attained One Day
International status until 2018.

Economic Impact of sport in Dubai 55


dubai case studies

Dubai as a hub for


international sport
A number of international European golf’s governing body, the start of the 2015 season, and Rory
sporting organisations have the European Tour, and Spain’s top McIlroy is resident in the emirate. Stars
chosen to base themselves in football division, La Liga, have offices of other sports, including Fernando
Dubai, either on a permanent in Dubai, whilst the World Professional Alonso and Roger Federer, have also
or temporary basis. Dubai’s Powerboating Association is also chosen Dubai as their home for parts of
connectivity with the rest of the based there. the year. Similarly, professional cycling
world and strategic position teams such as Astana trained in Dubai
linking East and West is a key The International Tennis Federation ahead of the Dubai Tour.
factor in this decision, with (“ITF”) chose to hold its most prominent
over two thirds of the world’s annual event, the ITF General Dubai has proved to be a popular
population living within an Assembly, in Dubai in 2014 and in destination for international football
eight-hour flight, and a third November 2016 the International teams over recent years. Several
living within four hours. Hockey Federation (“FIH”) Congress English Premier League clubs travelled
will take place in the emirate. Many to Dubai for training camps during the
Other key factors include the favourable international federations hold Board and 2014/15 season, and a number of other
winter climate, advantageous tax other ad-hoc meetings in Dubai. clubs, notably from Russia and Eastern
regime, world-class facilities, quality Europe, travel during breaks in their
hotels and leisure opportunities, and Parasport governance is also regular season.
the strong relationships that Dubai has represented, with the Asian Paralympic
developed with key stakeholders across Committee (“APC”) having recently Key facilities include Jebel Ali, which
the world of sport. moved its headquarters from Malaysia targets 10 to 12 clubs per European
to the UAE, with offices in both Abu winter, Nad al Sheba, which hosted
Dhabi and Dubai. Manchester United during 2013/14,
Governing bodies and the recently opened Dubai Sports
The International Cricket Council (“ICC”), A recent study into the economic impact City Football Academy, which has been
the governing body of international of international sports organisations in visited by Newcastle United and West
cricket, has been based at Dubai Sports Switzerland reveals that their presence Ham United.
City since 2009. Together, the ICC and generates over 32,000 overnight
Dubai Sports City run a training academy, business visits per year through Events such as the Dubai Football
the ICC Academy, whose vision is to meetings and other non-sporting events Challenge (Real Madrid vs AC Milan
become and remain the world’s leading (e.g. commissions, seminars, workshops in 2014) and pre-season tours and
cricket development, performance etc.) that they organise. This again tournaments (e.g. Emirates Airline T20
and education institution. As well as highlights the scale of opportunity that Cup) also attract international teams
providing a hub for international activity, can be achieved in Dubai. to the emirate. Teams such as FC
the ICC Academy has helped to raise Barcelona, Real Madrid, Arsenal and
the standard of cricket in the UAE. Liverpool also run academies in Dubai.
Teams and athletes
The governing body of cricket in India, Professional teams and athletes from a Despite competition from the likes of
the BCCI, chose Dubai to host the number of sports also choose Dubai as Abu Dhabi and Qatar in this area, Dubai
first phase of its 2014 Indian Premier a base for winter or off-season training is well placed to establish itself as the
League (“IPL”) season, having taken the camps. As mentioned in the Golf case preferred winter-break destination for
decision to move the tournament away study, golfers such as Martin Kaymer, teams and athletes, especially
from India due to the country’s general Justin Rose and Henrik Stenson based in football.
elections. themselves at the European Tour
Performance Institute to prepare for

56 Economic Impact of sport in Dubai


Dubai Tour

Conferences and exhibitions • Mohammed Bin Rashid Al Dubai also hosted the prestigious
A number of global sport conferences Maktoum Creative Sports Award, SportAccord International Convention
and exhibitions are staged in Dubai, an award ceremony which honours in 2010. If Dubai boosted its marketing
including: sports individuals, teams and activities in this area this could lead to
establishments that demonstrate further economic impact, particularly
• Host Cities, which hosts leaders and creativity and offers a total prize fund for those conferences which attract
officials of sports organisations from of c.$2m; and participants from around the world.
around the world and discusses
cities’ ability to hold and organise key • Dubai International Sports
international events; Conference, which was launched in
2006 and aims to support football
• Middle East Sports Event Summit, and other sports in the UAE.
which focuses on the challenges
and opportunities in sports event
management;

Economic Impact of sport in Dubai 57


section 7

Future Outlook and


opportunities for dubai
This section looks at the future Strategic considerations and demonstration of the emirate’s
prospects for the sport industry • Sport in Dubai has developed unique sporting infrastructure.
in Dubai. In particular it offers organically over decades, both in
a viewpoint on key strategic terms of the events staged and • An anticipated 50 additional three
considerations and opportunities facilities that have been developed. star hotels are to be constructed
which could be addressed by by 2020, offering more affordable
policy makers and stakeholders • The emirate has developed a accommodation to visitors.
across sport in Dubai to build on powerful events brand, but there is
the emirate’s successes in the more that can and should be done to • Improved transport links and other
sport industry and strengthen tell its story. investment for Expo 2020 Dubai
its position and economic scale including enhanced event expertise,
over the coming years. • The use of the Dubai brand should will undoubtedly help promote
be considered to encourage closer Dubai’s sporting offering in a
co-ordination between stakeholders favourable light.
Macroeconomic outlook across the industry.
• The Economist Intelligence Unit
predicts real GDP growth for the Inbound visitors and sports tourism
UAE of 3.6% per annum in 2015-19, Sports Events • Approximately 60% of Dubai
with authorities further prioritising • For event promoters, Dubai is an International Airport passengers are
economic diversification. In the longer attractive destination and arguably transit only. There is an opportunity
term, growth is expected to average the best territory for revenue to increase the number of transit
3% per year from 2019-30 and Dubai generation in the region. However, passengers who break their journey
can be expected to mirror this. findings show a number of leading and stay in Dubai. Sport and event
stakeholders believe the current tourism can play an important
• Despite predicting population calendar of events is overcrowded, facilitation role in this regard.
growth will slow from 2020, the with significant events clashing on a
diversification programme will regular basis, including at a federal • The emergence of Abu Dhabi as
continue to support demand for (UAE) level. a popular tourism and sporting
expatriate labour, and the middle- destination can provide an
income bracket is also expected to • Consideration of possible events for opportunity for Dubai. Findings
grow proportionately as the economy the spring and summer months may suggest that significant numbers of
becomes more sophisticated. help relieve pressure on the busy people visiting Abu Dhabi will also
events season. spend time in Dubai. The opportunity
• Such growth highlights the continued for Dubai is to find mechanisms to
and long-term opportunity for attract day visitors and explore further
sport, with a strong economy and Expo 2020 Dubai co-working with Abu Dhabi in relation
a growing sport industry enjoying a • Expo 2020 Dubai is a key opportunity to sports tourism visits to the UAE.
symbiotic relationship. to pull the emirate’s sports
stakeholders together.
• There are specific opportunities for Facilities
improvement in a number of key • With an estimated 25m+ visits • A number of Dubai’s sport facilities
areas as follows: expected over the six month period have been driven by real estate
there is significant scope to use sport development – which has provided
to draw these visitors back to Dubai very significant enabling investment in
in future via the staging of events golfing facilities for example. Shocks

58 Economic Impact of sport in Dubai


from the global economic downturn
in 2009 had a negative impact upon
Dubai’s real estate development and
have left certain landmark facilities
surrounded by undeveloped land or
part-developed real estate and without
public transport links. Now that real
estate development is recovering in
the emirate, over coming years the
prospects for these sports facilities are
more positive as they become further
integrated into the city and the original
vision for their development is realised. Swimming at the Hamdan Sports Complex

• Public facilities, where members of


the public can participate on an ad maintaining its position as a leading • The use of Dubai as a location for
hoc basis are limited, cycle paths host city for international sporting warm weather training in the winter
being the exception to this. Dubai’s events – especially if its design is months is proving increasingly
main residential areas typically do not tailored to maximise its functionality popular for football teams. If
have significant public or community and utilisation. marketed correctly Dubai could
facilities except for private gyms and in time become the ‘go-to’ venue
squash courts so it is more difficult • There is also a perceived need for a for a significant number of clubs,
for residents to participate in a sport multi-purpose indoor arena. Whilst with resulting opportunities for
on an ad hoc/recreational basis. the Hamdan Sports Complex has training/exhibition matches. Mass
been used for indoor sports its participation events also have
• Currently, there is no purpose built primary purpose is aquatics. considerable potential in attracting
outdoor stadium for 30,000 or more additional sports tourists.
spectators. This is not in keeping • As previously mentioned, Expo 2020
with what Dubai stands for, nor in Dubai, and particularly its legacy, • The proximity of the Qatar 2022 FIFA
keeping with peer sporting cities provides a significant opportunity World Cup is a further opportunity for
on the world stage, especially for additional sports facilities in the Dubai, and the emirate could be both
regarding aspirations for hosting emirate to be established. a popular location for visiting teams
major events. Further feedback and also an attractive location where
was that a considerable amount of spectators and officials may stay.
planning should go into its design, Dubai as a sporting hub
infrastructure and transport links • There is a significant opportunity • In addition the facilities are in place
to ensure its location and facilities to market Dubai as a sporting for winter training for a number of
enable it to maximise its utilisation hub. Based on the experience of other sports, in particular cycling and
(for sports and non-sports events). the ICC it is an attractive location triathlon, building on the reputation
for International Federations, and Dubai has already established for
• The UAE’s hosting of football’s 2019 building on the establishment of golf. Tailored packages (flights,
AFC Asian Cup provides a significant offices of other leading international accommodation, facilities) should be
opportunity for construction of a sport stakeholders (European Tour, considered to provide an alternative
purpose built outdoor stadium. Such La Liga) scope exists to develop this venue to traditional training locations
a stadium can contribute to Dubai area further. such as the Canary Islands or

Economic Impact of sport in Dubai 59


Section 7: future outlook and opportunities for dubai

Hamdan Sports Complex

Majorca. These will need to be Golf Broader sport industry


competitively priced unless intended • Golf is an established sport in • Dubai has demonstrated its ability
to appeal to the high-end only market. the emirate with a strong, proven to host leading sports conferences
track record. Both the European and meetings in recent years, yet this
• Cycling stakeholders believe that in Tour events staged (the Dubai is an area of considerable potential
20 years cycling tourism could be Desert Classic and DP World Tour growth, especially for International
on the same scale as golf, both for Championship) attract significant Federations, due to the emirate’s
participation and attending events international media coverage, excellent international transport links,
such as the Dubai Tour. Opportunities enhancing Dubai’s reputation as a accommodation and conference
exist in this regard, particularly in global sporting destination, although facilities, and infrastructure.
marketing any packages available. the competitive advantage over other
locations has narrowed. • Although Dubai has a relatively strong
• International training camps for young and well-developed set of supplier
people and further development • Golf is a key driver of inbound industries, event management
of extreme and air sports, a sector tourism, hence generating economic expertise could be developed further,
in which Dubai is already a leading impact for the travel, hotel, retail, food to ensure it remains competitive on a
international player, are other areas of and beverage sectors, and so forth. global level in terms of event delivery,
significant opportunity. customer experience and sponsor
• Further opportunities exist to enhance servicing. Expo 2020 Dubai provides
Dubai’s golf offering through the a significant opportunity for this.
development of a central booking
system and promotion of integrated
golf packages (flight/accommodation/
golf). Cross-promotion of golf with
other events (e.g. conferences and
exhibitions) and utilising the mid-week
capacity at the majority of courses are
other opportunities.

60 Economic Impact of sport in Dubai


Limitations
Introduction and scope of our review Categorisation of expenditure Consultations
Falcon and Associates commissioned Deloitte LLP This report categorises the economic impact of sport We have consulted with individuals from over 30
(“Deloitte”) to produce this Report, which has been into three industry sectors being Events, Facilities and organisations including:
prepared in accordance with the contract dated 7 People. The categorisation of the gross economic • Al Nasr Club
January 2015. The Report sets out the results of footprint and direct economic impact (additionality) • Department of Tourism and Commerce Marketing
research and analysis of the economic impact of sport of sport has been carried out in this order with that • Desert Palm Polo Club
in Dubai, including a small number of selected case attributable to Events being allocated first, followed by • DP World
studies, a discussion of the role of key stakeholders and that non-Event income attributable to elite/professional • Dubai Autodrome
relevant high-level benchmarking information from other sport Facilities with the remainder being allocated to • Dubai Duty Free
territories to the extent information is available. People, i.e. participants at a grass root/recreational level • Dubai Golf
(including the facilities they use). • Dubai Marathon
Use of this report and legal responsibility • Dubai Polo and Equestrian Club
Some of the matters discussed in this Report are by their • Dubai Sports City
nature technical. The intended recipient of the report, Modelling • Dubai Sports Council
Falcon and Associates, is familiar with the issues, facts The multiplier methodology described below is used • Dubai World Trade Centre
and other matters addressed and the Report was written extensively by Deloitte in assessing both the impact of • DUPLAYS
with that in mind. a given sector or industry on the national economy or • Emirates
the economic impact of new developments in a given • European Tour
This Report is prepared for the sole and confidential use location. • Falcon and Associates
of Falcon and Associates and for the purposes set out • Fast Track
in the terms of engagement. In preparing this Report Specifically the model is based upon publicly available • FBA Sports
our only responsibility and duty of care is to Falcon and Input-Output Analyses for Dubai. The model details what • Golf in Dubai
Associates. We did not, and do not by consenting to proportion of inputs each industrial sector sources from • Hamdan Sports Complex
publication of this Report, assume or accept or owe any other sectors when producing an extra unit of output. • IMG
responsibility or duty of care to any other person. • Jebel Ali resort
The principle behind a multiplier effect is that a change in • Meydan
Falcon and Associates has asked for our consent to economic activity will have knock-on effects for the rest • MMC Sportz
making this Report publicly available by appropriate of the economy. • Nad Al Sheba complex
distribution methods as agreed with Deloitte. We • Promoseven Sports Marketing
have agreed to provide such consent on the following These effects can be assumed to take place through • SportArabia
conditions: two channels: • The Sevens Stadium
• UAE Athletics
• This Report may not be suitable for the use of • Supply-chain linkages (Business to Business effects) • UAE Cricket
any person other than Falcon and Associates. – if industry demand increases it can be assumed • UAE National Olympic Committee
Accordingly, publication of this Report to persons that production will increase. This expansion requires • UAE Rugby
other than Falcon and Associates is for information more raw materials and associated services from • World Professional Powerboating Association
purposes only and no person other than Falcon and other industries. In turn these other industries may
Associates should place any reliance on this Report; need to increase production to meet the demand and
and they too will increase levels of economic activity (the Our reliance on information
indirect effect); and In preparing this Report, we have used information
• We do not assume or accept or owe any and data which have been obtained from a variety of
responsibility or duty of care to any person other • Consumer or wage effects – an increase in an organisations including Falcon and Associates, many
than Falcon and Associates. Accordingly, any person organisation’s activity level will mean a higher wage of the organisations consulted (listed above) and other
other than Falcon and Associates who, contrary to bill. This money will be spent partly in the economy. publicly available sources. In all cases (and including
the above, chooses to rely on this Report, does so at This rise in consumer demand requires increasing information from organisations not listed), we have relied
their own risk and we will not be responsible for any production of goods and services, hence increasing upon such information and data as being true, correct
losses of any such person caused by their reliance on expenditure (the induced effect). and complete and have not audited, tested or checked
this Report. any such information or data.
The multipliers used in this Report give both the indirect
and induced effects of expenditure in Dubai’s sport
Economic model methodology industry. SPECIFIC LIMITATIONS OF OUR REVIEW
The methodology applied can be simplified into the In accordance with our terms of engagement, or due
following stages: The indirect and induced effects are estimated by Type to our findings when performing our work, the following
I and Type II multipliers in the model. Type I multiplier specific limitations should be noted:
1. Collation of information from existing published data allows us to calculate the indirect effects as a result • The economic impact of those elements of the sport
reports, information sources and consultations with of the initial expenditure. Type II multipliers enable us to industry within the UAE but outside of Dubai has
sport stakeholders in Dubai. calculate the indirect and induced effects generated by been excluded.
the initial expenditure. By taking the differences between
2. Categorisation of expenditure into three industry Type I and Type II effects, it is possible to isolate the • The Report has not carried out analysis or evaluation
sectors – Events, Facilities and People – with gross consumer spending effects of the expenditure. of the following areas except for a high-level overview
expenditure and direct economic impact (additionality) as part of the estimation of the impact on secondary
allocated to each. It should be pointed out that in interpreting the results industries flowing from sport in the emirate:
from the model, the hypothetical removal of the sport i) Sports medicine and sports science institutions, to
3. Development and use of a multiplier model, based industry from the Dubai economy would not result in a the extent that they are not directly involved in elite
on the economy of Dubai, to calculate induced and drop in national economic output of the magnitude that level professional sport;
indirect expenditure flowing through the economy as the industry currently contributes. This is simply because ii) Sports clothing and equipment manufacturers and
a result of sport’s economic activity. businesses and people would spend their money retailers; and
elsewhere. iii) Media – digital, printed and other creative
industries.
Collating information The model is intended to show the extent to which the
The methodology used in estimating direct and indirect industry is linked with the rest of the economy and what • As a simplification of any industry an economic model
expenditure within Dubai’s core sport industry is the contribution of the industry currently is, rather than of this type can only ever be expected to represent an
summarised in the main body of the Report. suggesting what would happen to the Dubai economy if approximation of a real-life outcome. The model relies
the industry did not exist. upon information provided by stakeholders as well as
The collation of this information serves two purposes. the latest officially published data, and it is possible
Firstly it is an end in itself, and secondly it acts as an input that industry linkages have changed since its initial
into the model which generates estimates of multiplier publication.
activity in the rest of the economy. The method used to
assess this type of knock-on benefit is outlined below.

Economic Impact of sport in Dubai 61

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