This year’s FIFA World Cup will have winners and losers, both in the stadium and in the stock market. Companies from Qatar and the surrounding region will seek business from 1.5 million. football fans expected to visit the country. Analysts at HSBC Global Research believe regional food and beverage giants Alamar Foods, Agthia Group and Almarai are among those set to win the tournament. Jet fuel supplier Qatar Fuel and hotel operator EMAAR Properties are also among the bank’s beneficiaries. But risks remain for investors, highlighted by the Qatari government’s last-minute ban on all beer sales in and around World Cup stadiums. The conservative, gas-rich Muslim nation does not outright ban alcohol for visitors, but its sale and consumption is strictly controlled. The reported decision casts doubt on the tournament’s $75 million sponsorship from major beer maker Budweiser, which owns Anheuser-Busch, and will anger many organizers and participating fans already frustrated by new restrictions on the 92-year-old event. Tourism Spending Controversies aside – and there certainly has been some controversy – the sheer number of visitors to the region means that many regional businesses stand to benefit. Qatar’s population of around 3 million is less than a third of the metropolitan areas of New York or London. And its capital, Doha, is limited to welcoming visitors as it has only 30,000 hotel rooms. This means a “significant” number of tourists will “spill over” to other regional hubs such as Dubai and Abu Dhabi, according to HSBC. Tourism spending is expected to reach around $4 billion during the football season, most of which will be spent in Qatar. However, Dubai is expected to be the next biggest beneficiary, according to market research firm Redseer Strategic Consulting. Emaar Properties is likely to be a big beneficiary of this demand. According to HSBC, the Dubai-listed company, which operates 6,000 hotel rooms and shopping centers across the city, is expected to see a rise in sales during the period. The investment bank expects the company’s shares to rise 23.2% to 7.60 UAE dirhams ($2.07). Qatar Fuel, the exclusive jet fuel supplier in Qatar, is likely to benefit from the World Cup almost immediately. HSBC predicts continued growth in air traffic over the long term, given the expansion of Qatar Airways and Doha Airport. The investment bank increases Doha-listed shares of Qatar Fuel by 21.8%. Feeding and quenching the thirst of fans will also be big business in Qatar and the surrounding region. HSBC says Saudi Arabia-based Alamar Foods Company, operator of Domino’s Pizza and Dunkin’ Donuts franchises in the Middle East region, “could benefit from increased fast food consumption during the World Cup.” The investment bank expects the Riyadh-listed company’s shares to rise 10.8% to 164 Saudi riyals ($43.64). Similarly, HSBC expects Almarai, another Riyadh-listed baker, to buy out the tournament, sending its shares up 12.9% to 64 riyals a share. Meanwhile, the investment bank boosts Abu Dhabi-listed beverage maker Agthia by 61 percent. The FIFA World Cup will not only benefit consumer businesses in Qatar and the surrounding region, but also around the world. For example, during the 2018 World Cup, food delivery company Zomato in India received three times more orders than on a regular day during the crucial match. — CNBC’s Natasha Turak contributed to this report
