Opportunities for institutional investors in the 2030 FIFA World Cup

Hosting a World Cup often requires significant expenditure. And spending often goes over budget, especially when new infrastructure is needed. FIFA requires World Cup hosts to have at least seven stadiums, some with a capacity of 80,000, along with security, infrastructure, sustainability, training grounds, transport links, press centers, and fan zones.

By co-hosting the event, Morocco, Spain and Portugal can more easily meet FIFA’s requirements by limiting their investment in infrastructure, while benefiting from the potential economic impact of hosting the event. The three countries are betting that hosting the World Cup will significantly boost their respective economies through increased tourism, measured infrastructure development (spread across three different countries) and global visibility:

• Spain: with modern stadiums and infrastructure, expects to spend EUR1.43 billion but expects to generate over EUR5 billion in benefits.
• Portugal: new investments will be aimed at updating and/or modernizing existing infrastructure. The World Cup is expected to have an economic impact on Portugal of over EUR800 million, boosting tourism revenues by 2.3% and creating around 20,000 jobs.
• Morocco has announced a MAD42 billion (USD4.4 billion) investment package to upgrade its infrastructure as it aims to deliver a USD1.2 billion economic uplift, primarily driven by tourism and infrastructure development.

Investment opportunities

Institutional investors should consider several key asset classes in the commercial real estate sector:

• Hospitality and tourism: The expected surge in tourism will drive demand for hotels, resorts, and short-term rental properties. With the number of international visitors expected to reach 95 million by 2024, the Spanish tourism industry is laying a solid foundation for continued growth.
• Retail, commercial and office spaces: The development of new shopping centers, entertainment venues, and commercial hubs will cater to the needs of tourists and locals alike. Investors should look for opportunities in major cities like Madrid, Lisbon, and Casablanca.
• Infrastructure Projects: Investments in transportation, stadiums, and other infrastructure projects will create long-term value. Upon completion, the Benslimane Arena is set to become the largest stadium globally, boasting a capacity exceeding 115,000. The construction of this monumental project is projected to cost approximately MAD5 billion (USD520 million).

The 2030 FIFA World Cup is a compelling opportunity for investors to capitalize on the anticipated economic and infrastructure developments in Morocco, Spain and Portugal. By focusing on key asset classes such as hospitality, retail, office spaces, and infrastructure projects, investors can position themselves to benefit from the long-term growth and increased demand in these markets.

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