Why Arab Football Spending Has Yet to Deliver Success on the Pitch

In a new episode of the Money Axis podcast, we discussed the World Cup opening tomorrow, the Arab national teams taking part in it, and the connection between the geopolitical situation and achievements on the pitch.

"Iran is a nation crazy about football, with a huge tradition and many World Cup appearances, but as far as its domestic league is concerned, it has a problem," says Doron Peskin, an analyst for Calcalist. "FIFA froze $33 million for Iran, and foreigners cannot come. It is not just players, but also coaches and experts. An Iranian player, as talented as he may be, does not have the tactical framework to go further. Because there are no foreigners, there is very strong competition in the Iranian market for local talent. Even in football terms, we see how the political situation affects Iran."

The world has grown used to the Gulf states' big money, mainly from Qatar and Saudi Arabia, flowing into sports as well, but it still has not translated into success in major tournaments. "Arab money in world football is much larger than what the national teams produce," Peskin says. "Ahead of the World Cup, a list of national team values was published, and out of $17 billion, the value of the seven Arab national teams reaches perhaps $1 billion. But we do know that the Arab world influences world football, whether through hosting tournaments, buying clubs or sponsorships. So far, that has not been reflected in the quality of the national teams."

Why do North African national teams succeed at the World Cup while wealthier countries such as Qatar and Saudi Arabia do less well? "We see that money in football does not mean everything," Peskin says. "In Arab countries, especially the Gulf states, sports money is also a tool for economic diversification, but also for shaping awareness, for gaining soft power. The Gulf states recognized that the connection between so much public interest and their money could give them the branding and influence they want."

"The Gulf states are nations that love football, but they do not have the tradition and infrastructure that North Africa or Iran have. Still, what Qatar has done cannot be dismissed, it built a large football academy, and with its resources it brings in the best doctors and coaches. In 2019 Qatar won the Asian Cup, which is no small achievement, and it is really trying to build some kind of tradition and is moving in the right direction."

Saudi Arabia, which is set to host the 2034 World Cup, is also investing heavily in football and in efforts to attract big-name players to its domestic league, such as Cristiano Ronaldo. "The Saudis decided to brand the league as one of the most talked-about in the world, and they succeeded in bringing in significant foreign players thanks to the Public Investment Fund. The question is whether that also enables them to develop local talent? We will probably see the answer in the coming matches."

Alongside the big money, the Arab world's great hope is Morocco, the first Arab national team to reach the World Cup semifinals in Qatar. "Morocco is a football powerhouse, and it also leads in terms of the value of the players in its squad," says Peskin. "Morocco is also a surprise, it is not abundant in resources, it is largely based on unstable agriculture, so it is a great example of how a country that is not economically strong becomes a football empire. The Moroccan Football Association managed to create an infrastructure, the players grow up in Europe but return to play for its national team. Algeria and Tunisia succeeded with a similar model as well, they are strong teams. It may be that the historical connection to France played a role here, because in Egypt this model works less well, among other things because of the economic situation."