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Sudden Demand and Investment... and Economic Management

Prof. Dr. Yaseen Abdulrahman Al-Jefri

Date of publication: July 13, 2026 23:07 KSA

We are approaching hosting the World Cup in Saudi Arabia (2034), which typically leads to a sudden demand for housing and other services from the football audience. This occurs over a period of one month, after which demand returns to its previous level. Therefore, when countries have massive absorptive capacity and a hosting culture, they can benefit from sudden demand and reap good returns. We have experienced this sudden demand during the short period of Hajj, and relevant authorities are seeking to expand it during the Umrah season complementing Hajj, to sustain the benefits and returns from investment in various aspects of serving pilgrims. Through the Entertainment Authority, Saudi Arabia has created seasons in other regions, attracting a large number of visitors, especially in Riyadh. Over the next decade, we are approaching a similar and important experience through creating sudden demand for the World Cup.

Undoubtedly, the number of visitors and those wishing to attend will be huge, and there is a pressing economic need to manage various activities such as housing, catering, and transportation. Saudi Arabia has undergone this experience, as we mentioned earlier, but we must know whether there is additional volume requiring investment and building additional hotels that would soon close, waiting for an event of the same scale, or should we manage the temporary demand by redirecting part of the available resources in the style of Airbnb? We have previous experiences in this regard during the Hajj seasons in the holy cities, instead of draining investment in an asset for which the need is temporary. Capital investment for temporary demand is a misguided decision, but if we repurpose some available assets to accommodate the numbers resulting from temporary demand, it would be better and a successful use of assets directed at other sources. Undoubtedly, resource management by relevant authorities and benefiting from local experiences will support decision-making, improve utilization, and direct investment in the right direction.

There is an urgent need for the Ministries of Tourism, Sports, and Municipalities to study and plan for this major sporting event by developing a direction that serves the sudden demand, so that we do not rush into costly and wasteful capital investments in the future, unless we can transform sudden demand into continuous demand, as is the case with Hajj and Umrah. And with God's success.

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