As Qatar's name is "put through the wringer" following allegations of bribery and labor abuses linked to its bid to host the 2022 World Cup, the risk it could lose the right to stage the tournament is "piling pressure on an already jittery business community," according to Simeon Kerr of the FINANCIAL TIMES. The corruption scandal engulfing FIFA comes amid a budget squeeze launched by Emir of Qatar Sheikh Tamim bin Hamad Al Thani, who has been "tightening the purse strings since he took power after his father abdicated" in '13. Adding to the "pain, the fall in global oil prices in the past year has prompted yet more cuts." Government revenues are "forecast to decline" by a third this year, according to Citi forecasts, "speeding up project delays and redundancies and changing the landscape for foreign businesses." A Western lawyer with a portfolio of Doha-based clients said, "It's been the perfect storm. First there was a squeeze after the [political] transition, then the oil price went down, and now the World Cup is under threat." The emirate is "spending billions on preparations for the tournament." Its $140B infrastructure development plan for 2022 includes projects -- such as a brand new 300km metro system and the new city of Lusail -- that will be "carried out whether or not it hosts the festival of world football." Allegations that Qatar won its bid through bribery have "led to calls for it to be stripped of its right to host the competition" -- especially after the corruption scandal at FIFA erupted last month. But Bank of America Merrill Lynch has estimated that about $16B worth of direct investment will be "threatened if Doha loses the tournament." Businesses are also "concerned that hurt pride could cause Qataris to turn on foreign companies" (FT, 6/28).
