​The Ministry of Economy and Commerce is seeking to provide support for the sports sector as one of the pillars of the economic diversification policy adopted by the State to accomplish the Qatar National Vision 2030.The event ticketing market in Qatar’s sports sector will witness significant growth, rising from an estimated 30 million Qatari riyals in 2016 to 62 million Qatari riyals in 2025This study aims to increase the contribution of the sports sector to the GDP and to provide investors and businesses with an overview of investment opportunities in this sectorThe net present value of investments in ticketing services is expected to reach approximately 26 million Qatari riyals over the next ten years (from 2016 to 2025).
 
 
The Ministry of Economy and Commerce has unveiled new investment opportunities in ticketing services for sporting, cultural and entertainment events, based on the findings of a study on sports investment opportunities in Qatar.
The study, undertaken by the Ministry in cooperation with the Ministry of Culture and Sports, the Supreme Committee for Delivery and Legacy, Qatar Olympic Committee, Aspire Zone Foundation, and Qatar Tourism Authority, is part of efforts to strengthen public-private partnerships and provide support for the sports sector, which represents one of the pillars of the economic diversification policy adopted by the State to achieve the Qatar National Vision 2030. The study aims at increasing the contribution of the sports sector to the GDP and providing investors and businesses with an overview of the investment opportunities in the sports industry.
In the context of presenting investment opportunities in the event ticketing market in Qatar, the Ministry of Economy and Commerce said the role of the ticketing service provider and its added value largely depends on the nature of event. This role can be as limited as providing a ticketing system or as extensive as offering an integrated multi-channel distribution network.
The study found that ticketing companies usually offer discounted ticket prices to companies and sponsors of sports tournaments, while tickets sold to the public at various outlets are priced relatively higher.
In this context, the Ministry highlighted that ticketing companies can boost their sales by adopting effective marketing plans, involving trademarks and various communication channels (such as the internet, call centers, ticket sale outlets and sales windows on the event site) to attract the public.
The Ministry noted that this investment opportunity will allow local small and medium-sized companies to provide booking and ticket sale solutions to local events through agreements with organizers and sponsors of various events.
With regard to the ticketing market in the sports sector in Qatar, the study conducted by the Ministry indicated that this activity is expected to grow rapidly, from 30 million Qatari riyals in 2016 to 62 million Qatari riyals in 2025, at a compounded annual growth rate of 8%, as the country prepares to host major local and international sporting events such as the 2016 Road World Championship, the 2019 World Championships in Athletics and the 2022 FIFA World Cup. Qatar also hosts a myriad of annual events such as Doha Diamond League, the Qatar ExxonMobil Open tennis tournament and the Moto GP World Championship.
The Qatar Tourism Authority is also playing an important role in supporting the sports sector through strategic development plans aimed at bolstering local demand by hosting more than 100 key sports events organized between 2015 and 2016, including 60 international events.
When it comes to competition in Qatar’s ticketing market, the study noted that local companies lack the ability to meet the requirements to host international events by focusing on less complex and attractive sectors (such as cinemas). The study noted that the sports sector offers investment opportunities that allow new competitors in the market (both local and international) to provide additional services in various fields to differentiate themselves from the competition.
The study outlined the financial plan for investments in ticketing services in Qatar, noting that investors can take advantage of this opportunity through the allocation of investments worth about 31 million Qatari riyals. The net present value of these investment is expected to increase to 26 million Qatari riyals over the next 10 years (from 2016 to 2025) at internal rate of return of 19%.
 
Local companies with limited financial capacity can invest as low as 15 million Qatari riyals, with a net present value of 13 million Qatari riyals. When investing QR 5 million, the net present value rises to 4 million Qatari riyals.
The study indicated that if a company acquired the complete rights to distribute tickets, its revenues are expected to increase from 46 million Qatari riyals in 2016 to 111 million Qatari riyals in 2025. The study also noted that small investors can also achieve significant growth in revenues.
As for operating costs, the study showed that the cost of goods sold account for 78% of total costs of ticket sales, which essentially represents the bulk of purchasing costs. Purchasing costs also include reimbursements to event organizers, artists or participants. The study estimated profits arising from these investment opportunities before interest, tax and depreciation, at 12 million Qatari riyals, with a profit margin of 11%, based on the cost structure and revenue analysis for this opportunity.