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“This decision serves as a testament to the exceptional standing and recognition Morocco enjoys among the world’s leading nations,” King Mohammed VI said in October last year while addressing the Moroccan people when FIFA’s council unanimously adopted the Morocco-Spain-Portugal bid as the sole candidate to host the 2030 World Cup.
This historic moment was officially crystallized when FIFA confirmed two weeks ago that the three-nation bid would host football’s premier tournament in 2030.
As Morocco embarks on this unprecedented journey, questions and concerns emerge from various quarters: Can the kingdom afford such a massive undertaking? Will the infrastructure investments burden future generations with debt? How will the country manage to complete all required projects within the tight time frame?
These questions reflect legitimate public concerns about the economic implications of hosting one of the world’s largest sporting events.
The stakes are particularly high for Morocco, which will become only the second African nation to host the World Cup, following South Africa in 2010.
The tournament represents the culmination of five previous unsuccessful bids since the 1990s, with the closest attempt losing to South Africa by just four votes for the 2010 edition.
For the kingdom, this represents far more than a sporting spectacle – it’s a catalyst for accelerating its ambitious Vision 2035 development plan, which targets 6% annual growth to address regional disparities and social inequalities.
With agriculture still employing a third of the active population and unemployment at 13.6% as of September, the World Cup investment strategy aims to diversify the economy through targeted infrastructure, industrial, and service sector development.
The country is preparing to invest approximately $5 billion in infrastructure projects, aiming to transform its economy and boost tourism from the current 15.9 million visitors recorded in the first 11 months of 2024 to an ambitious target of 26 million by 2030.
This massive undertaking aligns with Morocco’s broader economic goals of doubling its GDP from $130 billion to $260 billion by 2035.
The comprehensive development program includes renovating five existing stadiums and investing MAD 5 billion ($500 million) in the construction of what is set to be the world’s largest football stadium – a 115,000-capacity venue in Benslimane near Casablanca.
Six strategically selected Moroccan cities will host World Cup matches: Rabat, Casablanca, Tangier, Fez, Marrakech, and Agadir.
The combined seating capacity of these venues will exceed 400,000 spectators, with detailed specifications for each stadium: Tangier (75,600), Fez (55,800), Rabat (68,700), Marrakech (45,860), and Agadir (46,000), alongside the new Benslimane mega-stadium’s 115,000 capacity.
Infrastructure revolution: Building tomorrow’s Morocco
The kingdom’s preparation extends far beyond stadium construction, encompassing a comprehensive transformation of national infrastructure.
The government has announced extensive upgrades including airport expansions, new high-speed rail connections, and enhanced road networks.
The high-speed rail network, already connecting several major cities, will be further developed to ensure seamless travel between host cities.
A flagship project is the extension of the high-speed rail line between Casablanca and Marrakech, adding to Morocco’s distinction as home to Africa’s first high-speed rail system.
Tourism infrastructure is receiving particular attention, with plans to increase hotel capacity by 40,000 rooms to reach a total of 330,000 rooms by 2030.
The government has launched an innovative hotel modernization program offering loans of up to $10 million per establishment, with the state covering all interest payments during 2024-2025, targeting the renovation of 25,000 rooms with investments exceeding MAD 4 billion ($400 million).
Royal Air Maroc, the national carrier, has announced ambitious expansion plans to grow its fleet from 50 to over 200 aircraft to accommodate the expected surge in visitors.
This expansion accompanies significant airport modernization projects, particularly at the Mohammed V International Airport in Casablanca, to handle increased passenger capacity.
This transportation infrastructure will enable spectators to attend multiple matches across different locations, with travel times significantly reduced between venues.
Urban development projects in host cities include new commercial centers, healthcare facilities, and modernized public transportation systems. These improvements aim to enhance the overall visitor experience while providing lasting benefits for local communities.
Economic benefits: Calculating the return on investment
While it is difficult to precisely predict the total cost of organizing the World Cup, SogeCapital Gestion estimates that Morocco’s $5 billion investment is expected to generate substantial returns.
The investment strategy involves an equal split between public funding and private sector participation, including international investors, helping to distribute the financial burden.
Valoris Securities’ economic impact analysis reveals multiple revenue streams:
– Each match is projected to contribute between $25 million and $37.5 million to the economy
– Total direct economic benefit estimated at $1.2 billion
GDP growth contribution of 0.6% to 0.9% during the 2024-2030 period
– Creation of 200,000 to 250,000 direct and indirect jobs
Tourism revenue projections showing an 80% increase in visitor numbers by 2030
The construction sector is already experiencing increased activity, with projects ranging from stadium development to transportation infrastructure improvements.
This surge in construction is creating immediate employment opportunities and stimulating related industries such as steel, cement, and construction materials.
Hosting approximately one-third of the tournament’s 104 matches will generate between $850 million and $1.275 billion in direct economic impact, not accounting for potential inflation between 2022 and 2030.
Accelerating national development, but!
In an exclusive interview with Morocco World News (MWN), economic analyst Mohammed Jadri emphasized the World Cup’s role in accelerating Morocco’s development timeline. “What might have taken 15 to 20 years will now be accomplished in six to seven years,” he stated. “The added value will come before, during, and after the World Cup.”
Jadri detailed the comprehensive nature of the preparations: “We’re not just building stadiums; we’re developing entire ecosystems. This includes public transportation, healthcare facilities, telecommunications infrastructure, and hospitality services. The real beneficiaries are the Moroccan people, who will inherit this modern infrastructure.”
He particularly emphasized the need for sustainable economic models for new facilities: “These stadiums must become commercial centers operating throughout the week, not just during matches. They should integrate restaurants, cafes, shopping areas, conference facilities, and hotels to generate continuous revenue streams.”
The analyst pointed to specific infrastructure concerns, highlighting the Hassan II Stadium in Benslimane as an example: “We can’t pour billions into facilities that only open once a week for matches. These venues must become vibrant centers that generate revenue throughout the week through diverse commercial activities.”
The analyst highlighted the importance of efficiency in infrastructure investment: “Currently, we need 9.6 points of GDP investment to generate one point of growth, while neighboring countries achieve the same with just 4 points. This efficiency gap must be addressed in our World Cup preparations.”
“The current economic model for our sports facilities has failed,” he warned. “For every dirham we invest, we’re only getting 50 or 60 centimes in return. This is like pouring water into sand if we don’t develop a more sustainable approach.”
Speaking about funding challenges, Jadri emphasized the three main sources available to Morocco: “We can only secure funding through three channels – taxpayers and the kingdom’s treasury, public-private partnerships, and debt financing. While taking on debt isn’t inherently problematic, it must be directed towards investments with high returns.”
Jadri also stressed the importance of involving the private sector. “About half of the required investment should come from private sources, both domestic and international. This partnership approach will help ensure project sustainability and efficient management,” he argued.
The analyst concluded: “We can’t burden future generations with debt for projects that don’t generate adequate returns. We need a comprehensive public discussion, free from populism and political posturing, to ensure these investments benefit all Moroccans through sustainable job creation and long-term economic value.”
‘Debt isn’t a barrier’
Mohammed Afzaz, a Moroccan economic analyst based in Qatar, drew from his expertise with the Gulf country’s 2022 World Cup organization to provide a compelling perspective. Speaking to MWN, he outlined the tournament’s broader economic implications: “The World Cup will mobilize various sectors including construction, financial services, and tourism. We expect between 200,000 and 250,000 direct and indirect jobs to be created.”
In terms of employment, Brazil’s 2014 World Cup, for example, generated one million jobs, with 200,000 being temporary positions.
The projected investment appears modest compared to previous tournaments. Qatar’s 2022 World Cup required approximately $220 billion in investments, while Russia 2018 cost $11.6 billion, and Brazil 2014 needed $15 billion.
Afzaz emphasized how the shared hosting arrangement with Spain and Portugal helps mitigate financial pressure: “The total investment of $15 billion, representing about 10% of GDP, is significant but manageable through this partnership. This approach allows Morocco to maximize benefits while sharing costs.”
He noted Morocco’s strong position in international financial markets: “The country’s solid credit rating will facilitate access to international debt markets at favorable rates. With global interest rates expected to decrease, the timing for such investments is advantageous.”
The analyst detailed the expected distribution of investments. “About $200 million will be invested annually through 2030, with funding sources including government budgets, international loans, and private sector participation. This diversified funding approach helps manage risk and ensure project sustainability,” Afzaz explained.
“The World Cup 2030 is an opportunity to develop Morocco’s infrastructure to become among the best, not just in Africa but also in Europe. This will help attract foreign investments and investors in general.”
He went on to elaborate on the tournament’s economic potential. “The hospitality sector alone will see major expansion, with plans to add 40,000 new hotel rooms, bringing the total to 330,000 rooms,” he detailed. “Multiple sectors will benefit, from food and beverage to water supply, hotels, restaurants, and traditional Moroccan industries known for their global quality.”
The idea, Afzaz insisted, is that debt is not necessarily or ultimately a barrier. Instead, he concluded, “It only becomes problematic when used to cover budget deficits or consumption. When directed toward production and infrastructure development, it won’t have a significant negative impact on Morocco.”
Source: Morocco word news
