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sun, sand, and cricket: Dubai’s love affair gets stronger

sun, sand, and cricket: Dubai’s love affair gets stronger

whenever cricket looks for a venue, UAE’s stadiums come to the rescue
finance
July 4, 2021
3 min read
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sun, sand, and cricket: Dubai’s love affair gets stronger

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sun, sand, and cricket: Dubai’s love affair gets stronger

it is a country of contrasts. sporting talent is sparse. its national team has seen limited success in international matches. but when it comes to hosting cricket events, the United Arab Emirates (UAE) is the sought-after destination.

on September 19, UAE welcomed the eight teams of the Indian Premier League (IPL) for the second year in a row. a portion of the IPL 2021 matches in India were postponed due to Covid-19. it was later decided that UAE should be the choice.

according to a report by Deloitte, the UAE has spent over $1.7 billion to propel the desert country as a destination for sport. it managed to make back $420 million from sports directly. ancillary income from shopping and hospitality boosts that number to over $620 million. sporting events also create around 14,500 jobs each year, which also contributes to the economy.

Dubai (and UAE) have worked hard to be known as the world’s shopping mall. and a place where the rich can buy real estate. the country’s main source of revenue, however, is oil. with the world’s dependence on oil decreasing, UAE and Dubai are trying to terraform a new image. one as a center for technology, trade and lifestyle. Sports, and IPL, play an important role in that effort.

there are two ways to understand Dubai. what role does sport, especially cricket, play and why it is perfectly primed to take advantage as a new center for sport. 

but let’s start with the IPL.

destination cricket

IPL is known not just for the world’s biggest stars congregating in one tournament but also for the bugle. that bugle sound has become ringtones, played by DJs across the world and annoyingly in every party when the host wants to get people excited. essentially, it is all about making money. lots of it.

whenever the IPL or cricket has shifted to Dubai. it has managed to make money for the host country. last year, despite the lockdown and absence of spectators, UAE made $24.5 million from the IPL. 

things are getting better now because there will be spectators in the stands. this means big money for the Dubai economy, where sports contributes at least $109 million annually.

now, let’s break down how much the country actually earns from the sport. this year will be different compared to last year. while the pandemic seems to be finally fading, restrictions are still in place. the stadiums will be at 50% capacity. this means that Dubai stadium could have around 12,500 seats filled of its 25,000 capacity while Sharjah stadium could have close to 13,500 seats filled of 27,000.

to pay a minimum ~$55 for most matches in Dubai and Sharjah. in Abu Dhabi, the tickets are a minimum of ~$16. all of this doesn’t include sale of refreshments and merchandise. the BCCI is looking to make up for lost revenue of ₹2,000 crore ($271 million) through this shift.

IPL 2021 will be quickly followed by the ICC Men’s T20 World Cup. the matches will be held across venues in Abu Dhabi, Dubai, Muscat, and Sharjah. IPL essentially becomes a warm up for one of the largest events in cricket. now, project the stadium gate receipts for a larger group, and the picture will get clearer.

but why UAE?

for years, UAE has been considered as the destination for cricket outside India in the sub continent. 

this means the country has worked hard to make the sports infrastructure top notch. Infact, Sharjah made it to the Guinness Book of World Records for hosting the maximum number of ODIs.

for countries like India too, the central location of the UAE also makes it the top choice for big tournaments. close to 120 international flights fly in and out of Dubai every day. for players from the West and the East, this hub is convenient for travel.

there are time-zone advantages as well. more than 2 billion people across Africa, Asia, Europe, and the Middle East live in the four time zones either side of Dubai. so, major sporting events can be held during primetime raking in larger audiences.

offering tax sops, the country was also able to attract the International Cricket Council to set up shop in Dubai. ICC had shifted out from London in 2005 after the UK government refused to grant tax concessions. this is one of the reasons why UAE has become the backup option for any tour that has to be moved to a different location. 

rainfall is scarce. this reduces the chances of matches getting cancelled or delayed.

IPL 2021 was shifted to UAE also because the pandemic is being handled well.  infections have fallen and the bio-bubble experiment worked well last year too. 

it’s business

sport is a thriving business in the UAE. the government data shows that there are more than 20,000 people employed in Dubai’s sports sector.

more than 400 sports events, of which 130 are international, are organised in the emirate. the city is also home to more than 400 academies that offer expert training in all kinds of sports, especially cricket.

among these, football and cricket are the most popular sports. Indians are 28% of UAE’s population. so it’s no surprise that cricket is a must have.

Indian players have also expanded their investments into Dubai. in December 2020, former Indian skipper MS Dhoni opened a cricket academy in the location.

cash-rich Sheikhs

unlike other economies, the UAE isn’t shy of spending. the government wants people to come, play sports, and spend a lot of money. or even better, get citizenship.

it has announced a set of new plans to attract foreign nationals seeking residency. in addition, the Dubai Sports Council has inked a deal with the government where investors in sports can open businesses without a long list of approvals.

an earlier report said that the BCCI commissioned a study that estimated the total economic output for the 20 IPL matches in the UAE to be $75 million in 2014. this was the first time when IPL was shifted abroad, due to the general elections in India.

sports++

flying down to the UAE to watch a cricket match isn’t a big deal for many. but people want bang for their buck.

so what else to do? well, there are plenty of beaches and shopping malls. and of course, gold is available at cheaper rates.

considering that the country is tax friendly, travellers also get a VAT refund. tourists can claim refunds on all the value-added taxes paid for their purchases during their UAE stay.

this year, there’s the Dubai Expo 2020 as well. cricket fans can catch a glimpse of the local food and culture. mini-sporting events involving cricket will be there too.

UAE has certainly come a long way from its first international cricket game hosted at the Sharjah Cricket Stadium in 1984.