IPL 2020: Only $ 25mn economic gain predicted for UAE

India’s loss to be the UAE’s gain. But not significant indeed. It is estimated that the United Arab Emirates economy can gain only up to $ 25 million from the Indian Premier League 2020.

The Board of Control for Cricket in India is compelled to host the IPL Season 13 in the UAE due to the massive COVID-19 pandemic spread in the country. India with over 30 lakh detected COVID-19 positive cases has been the third most-affected country in the world after the USA and Brazil.

The UAE will host 60 IPL matches across 53 days with ten doubleheaders from September 19 to November 10.

The Emirates too will feel the heat of the novel coronavirus impact on the global economy. The projected financial gains for the UAE are feared to be far more less than in 2014 when the Emirates has hosted only 20 IPL games due to general elections in India.

According to Khaleej Times, the UAE had earned up to dirham 147.5 million ($40 mn approx) from the 20 IPL games in 2014.

“All these imply that the probable contribution of this year’s IPL season to the UAE economy would be much lower than 2014’s numbers of Dh 147.5 million ($ 40 mn approx). Assuming a 40 percent decline in a worst-case scenario, this implies a contribution of Dh85-Dh90 million ($25 mn approx) to the UAE economy,” Century Financial chief market strategist Devesh Mamtani has told the daily.

Sidharth Mehta, partner and head of BCRE at KPMG Lower Gulf, says the UAE’s hospitality sector – mainly Dubai and Abu Dhabi – will benefit from the mega event.

“League matches will be held over approximately two months and comprise eight teams. Dedicated hotels are expected to be booked by each of the teams for the duration. if authorities permit crowds in the stadium, cricket lovers from across the globe may come to the UAE to watch the live matches,” said Mehta.

“The UAE’s excellent hospitality and infrastructure facilities offer an extremely safe environment for the IPL. This may boost confidence among both those looking to organise and attend future events in the UAE,” he added.

Mamtani noted that travel and tourism will be a key beneficiary of the sporting event.

In addition, logistical and transportation will help the UAE attract foreign direct investment into the country.

The matches in the UAE will be played behind closed doors. However, a certain percentage of spectators is allowed towards the later stages of the tournament the UAE aviation and hospitality sectors stand to gain further.

Admin Sportz Front

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