Economic Impact of sport in $1. 7 billion+ 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, 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. in Dubai – a first It is a driver of economic development for the wider , North and has a significant bearing on tourism, and South (MENASA) . 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 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 over three We have also quantified the ‘total days. The Dubai 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 itself as a leading destination for tourism. expenditure impact • Dubai Tour $m $m • Dubai Duty Free Championships Other observations • 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 People 172 8 (October-April), due to summer in Dubai; 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 Championships at the • 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 • ; 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 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 $670m as the Color Run, the Electric Run and 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 $421m direct economic impact of sport in the 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 85,000+ high quality, traffic-free facilities and are 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

city benchmarks

$1.7 billion+ 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 of events in golf, rugby and tennis. c.14,500 Core industry employment 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 areas of the city and its excellent airport 1m+ and accommodation offerings afford Aggregate attendance 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 Health and fitness Education International Cricket Council (“ICC”). · 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 indicated in the diagram will still have Supply a major economic impact on sport in Dubai, but their existence is not reliant chain 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 Emirates Airline Dubai Dubai’s sporting heritage. For example, 61 Championships Rugby Sevens the Emirates Airline Dubai Rugby Sevens JAN 47 46 has been taking place since 1969 and 40 MAR 39 NOV has featured in the Sevens FEB APR 30 Series for 16 consecutive years. OCT 22 14 16 DEC MAY 12 SEP This section describes Dubai’s events JUN 48 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 and AC Milan in 2014, the 2015 calendar of events, with very few Sports Council Events Men’s U23 World events held in the summer months. A Guide 2015-2018. 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 • omega Dubai Desert Classic • Dubai Tour Globally recognised annual events that Major international 7 • standard Chartered Dubai • Dubai World Cup regularly attract significant numbers of annually recurring including: Marathon • DP World Tour Championship overseas visitors travelling specifically events • Dubai Duty Free Tennis • Emirates Airline Dubai Rugby for the event. Championships Sevens

INTERNATIONAL • ittf World Tour Grand Finals • samsung Beach Soccer Events that are international in focus, Including leading 46 • bWF Dubai World Superseries Finals Intercontinental Cup and/or recognised throughout the regional events including: • arabian Gulf League Football • World Championships UAE and wider GCC region. They may • Dubai International 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 • Local fun runs and community events Local, smaller scale events, usually Other Dubai events 90+ e.g. Furjan district tournament, Nad Al Sheba Sports Tournament, recreational activities with no including: Spinneys 92 Cycle Challenge Dubai 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 70 from external sources. 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 events, regardless of source) non-Dubai sources)

Largest MAJOR 407 325 INTERNATIONAL 250 34 e MAJOR LOCAL 52 0

TIONAL TOTAL 709 359

oss expenditur Source: Dubai Sports Council Event Guide 2015; The Dubai Calendar; Deloitte analysis. INTERNA Gr LOCAL

Figure 6: Direct economic impact of a selection of international Smallest Largest Smallest sporting events ($m) Scale of events 250

232 The typical profile of the economic 200 213 impact of events held in a territory with 183

a well-developed sport industry and 150 s rld Cup infrastructure is likely to resemble the 136 curve in Figure 4. national Series UK & Ireland 100 FIBA Wo 2014 (Spain) , USA) Marathon 2010 (UK) ur Masters 89

A small number of the major events verage of Dubai’ 72 riathlon Grand Final 2013 A seven major events NFL Inter 2013 (London, UK) e, UK will provide the majority of economic 50 rld To 46 rld T

40 RideLondon 2013 (London, UK) rld Equestrian Games

impact, with a smaller portion provided Wo (London, UK) orkshir TP Wo our de France 2014 A 2012 (Miami, USA) NFL Superbowl 2013 (New Orleans, USA) Wo 2010 (Kentucky T (Y 16 by the international events and the ‘tail’ 0 9 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. 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 Dubai50 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 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 9 50,000 attendees. (1%) 393 (39%) Whilst full data on the origins of Total: 1,006 spectators is not currently available for 604 leading Dubai events, consultations Emirates Airline Dubai Rugby Sevens at the Sevens Stadium (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 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 40 associated with hosting major 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 and promote itself as a leading 20 destination for tourism. 12 10 10 9 10 7 6 Furthermore, Dubai’s connectivity with 332 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, 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- 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 ’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 . 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, and 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 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 International Dubai Polo & Dubai Roads Marine Club & Equestrian Club Dubai Offshore Sailing Club

Sports 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 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 elite sporting events to grass Triathlon roots recreational activities. In 2011, a feasibility study into Dubai’s capability for hosting the 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 sailing facilities alongside desert public for recreational purposes is motorsport and event, the Standard 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 efficient transport links, provides ease of tracks • The Dubai Tour, - 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, , Golf, Tennis Cricket, Gaelic Swimming, Athletics, Tennis, Tennis, Synchronised Football, , Tennis, American , , Swimming) plus Basketball, Aussie Football Mixed Martial Arts, other sports, e.g. Rules, Tennis, Body building, Badminton, American Football Volleyball and Basketball, , Tennis, Volleyball

International cricket Dubai Duty Free UFC, Glory World DP World Tour FINA World Swimming Dubai World Cup Emirates Airline – IPL and Tennis Series 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

Al Nasr Dubai International Dubai World Club Dubai Al Shabab Shooting Emirates Marine Club Trade Centre Golf Club & Club Club Golf Club Yacht Club Al Wasl Club Al Ahli Montgomerie Club DWC Airport and Golf Club Meydan Expo 2020 Dubai Dubai Duty Racecourse DXB Airport site Free Tennis Dubai Sports City Stadium Golf Estates Dubai Al Badia Golf Club 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 5km

Jebel Ali Dubai Offshore Golf Resort Skydive Dubai Sailing Club

Al Nasr Jebel Ali Dubai International Dubai World Club Al Shabab Shooting Emirates Marine Club Trade Centre Golf Club & Club Club Golf Club Yacht Club Al Wasl Club Al Ahli Montgomerie Club DWC Airport and Golf Club Standard Chartered Dubai Marathon Meydan Expo 2020 Dubai Dubai Duty Racecourse DXB Airport site Free Tennis School and club teams from countries Conclusion Jumeirah Dubai Sports City Stadium Golf Estates including the UK, South Africa, Dubai has a range of high quality facilities Dubai and are also frequent suitable for elite level competition and Al Badia Golf Club Autodrome Nad al Sheba visitors to Dubai, travelling to train and grass roots participation. However, there Sports Complex play in tournaments against Dubai remain both significant opportunities and Dubai based teams or other touring parties. room for improvement in future. Equestrian & Polo Club The Sevens Cricket, hockey and netball are the Hamdan Stadium most popular sports for such teams. The use of Dubai’s facilities for warm Sports Complex 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 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+ in Dubai, both in terms of local Male Female 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 45-49 ou p by these participants are also 40-44 discussed. 35-39 Age gr 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%) are aged between 20 and 39. Within (8%) 168 328 these age groups, the most populous 22 economic free zones are in operation (15%) (8%) is the 30-34 bracket. Such a youthful in Dubai, offering foreign businesses population presents a significant attractive concessions and investment Total: 2,214 opportunity for growth in sport in Dubai, incentives across sectors such as ICT both in terms of event attendance and (Information and Communications 657 participation. Technology), media and finance. Such (30%) 763 incentives, coupled with Dubai’s central (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 Repairing Services bode well for sport. A strong, growing Volunteers, who are not included in the (14%) 550 economy requires sufficient resources FTE figures outlined earlier, will also play 122 (23%) Construction to support it, which is likely to result a key role in the sport industry although (5%) in increasing numbers of expatriate the economic impact of these will be workers in Dubai. A strong sporting minimal. 269 Transports, (11%) Total: 2,381 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 Business Services of participation and as a spectator This sub-section considers the (13%) 341 activity. economic impact associated with sport Restaurants and (14%) participation, of which there are various Hotels 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 and indirectly across the economy. 0.45 0.39 0.40 0.37 0.37 We estimate that c.14,500 FTEs are 0.33 employed in the core sport industry, 0.28 0.24 0.6% of the total workforce. This figure

0.19 Denmark 0.20 would be even higher with the inclusion 0.15 of workers in ancillary sports industries Spain eece

(i.e. those not working 100% of the eland 0.02 0.02 Sweden UK Dubai Gr Germany Ir France Netherlands Belgium 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: • UAE National Day (2 December) will from 2015 also incorporate a National tennis, futsal, cycling, , 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 . 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. 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 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 ’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 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. 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 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 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 raises the profile of a sport, 20 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 Football is the leading professional sport 140 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 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 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 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 , 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 , 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

• 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 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 . 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 ), 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 Federation • UAE Marine Sports Federation We assume that the majority of • Emirates 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

1,600 325 leakage e

1,200 1,136 alue Non-economic

XCAT World Series Powerboating Induced e e oss V ect ect expenditur Gr Added Dir

800 Indir 702 expenditur Indirect and induced impacts sources (and hence the level of expenditur

In addition to the direct economic leakage), and the profile of expenditure 400 oss output impact we also consider the indirect associated with sport in Dubai. otal gr and induced impacts to develop a total 0 T “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). they received on supplies); and 124 670 381

600 125 The broad conclusion therefore is that • Induced (consumer) impact – alue Dubai’s sport sector is approaching e 421 leakage which measures the associated oss V that of other economically developed Gr Added

400 e e Induced ect Non-economic consumer spending impacts (i.e. by ect 289 countries in terms of its economic scale Dir expenditur

individuals recirculating revenue into Indir and contribution, albeit lags behind

the economy). 200 oss output somewhat at present. expenditur expenditur otal gr The collective impact of these two 0 T 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 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. C ristina M uraca / S hutterstock.com Dubai is also the 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 : 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); 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 ; European Tour 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; ; 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 2015 Handball World Rugby Formula 1 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 , 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 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 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 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 ’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 - 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, 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 .

Los Angeles Los Angeles is one of the leading sporting cities in the . The Jumeirah 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, Facilities which provided the first night race on the Formula 1 calendar, and the WTA Strategy and infra- Championships, which Singapore will structure host until at least 2018. Singapore also hosted the inaugural Youth Olympic Games in 2010.

In June 2014, a state-of-the-art, fully Political Event integrated sports, entertainment and 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

DP World Economic Tour Championship, Impact the of last sport tournament in D uinbai the European43 Tour’s Race to Dubai 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, impacts again). 38 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 Golf courses 2,984 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

200 220 Population per course 112 134 121 200 Note: The European average is 86 based on 31 countries across • With a population of 2.2m, Dubai’s Europe. Data for Turkey relates 23 89 87 20 11 10 11 courses (at nine locations) equate to 2012. 0 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 2.0% 1,200 Players and food and beverage. The total 1.85% annual revenue of Dubai’s nine golf Participation rate 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 0.17% 142 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 (Troon Golf) Direct economic impact 11 Note 1: Golf travel highlights Dubai Creek Golf and Yacht Club Dubai Golf (Wasl Asset Management Group) 2013, KPMG. Emirates Golf Club Dubai Golf (Wasl Asset Management Group) Jebel Ali Golf Resort and Spa ja Resorts & Hotels Jumeirah Golf Estates (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 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 ) • 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 gross expenditure of these local c.$20m and direct economic impact participants is captured within the $38m 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 , 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 A 9 $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. day is given. D four Group 1 races. 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 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 , was also held in January 2015. The UAE will also host the Asian Table Tennis ’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 , 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 ), particularly the passion shown of residents and workers from by fans, will make Dubai an attractive , 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 – , 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 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 , 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 targets 10 to 12 clubs per European to the UAE, with offices in both Abu winter, Nad al Sheba, which hosted Dhabi and Dubai. 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 , 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