A fan shop outside the Luzhniki Stadium before the opening World Cup match between Russia and Saudi Arabia. Despite the huge spend, the host country is unlikely to register any significant economic gain. Kai Pfaffenbach/Reuters
A fan shop outside the Luzhniki Stadium before the opening World Cup match between Russia and Saudi Arabia. Despite the huge spend, the host country is unlikely to register any significant economic gain. Kai Pfaffenbach/Reuters
A fan shop outside the Luzhniki Stadium before the opening World Cup match between Russia and Saudi Arabia. Despite the huge spend, the host country is unlikely to register any significant economic gain. Kai Pfaffenbach/Reuters
A fan shop outside the Luzhniki Stadium before the opening World Cup match between Russia and Saudi Arabia. Despite the huge spend, the host country is unlikely to register any significant economic ga

Economy

Putin likely to get little return on $11bn World Cup investment

economists say the huge effort won’t be enough to generate much of a blip in Russia’s almost $1.5 trillion economy

Bloomberg

June 14, 2018

  • English
  • Arabic

President Vladimir Putin has spent six years and more than $11 billion preparing nearly a dozen Russian cities to host the soccer World Cup, the biggest such event the country’s held since the collapse of the Soviet Union.

As millions of fans spread out across European Russia over the next four weeks, the Kremlin is hoping to show a friendlier face and break some of the international isolation Russia’s suffered in the years since it annexed Crimea from Ukraine in 2014. From Yekaterinburg in the Urals to Kaliningrad on the Baltic Sea, the championship reaches cities few foreign visitors have seen before.

As high as the price tag is, economists say the huge effort won’t be enough to generate much of a blip in Russia’s almost $1.5 trillion economy. Moody’s Investors Service said last month that any boost will be limited and short-lived, well short of the fillip provided by the 2014 Winter Olympic Games in Sochi, which cost a record $50bn. Economists say the best Russia can hope for this time around is a modest gain in the rouble.

_____________

Read more:

Du and beIN Sports reach deal to show World Cup games

FIFA World Cup 2018 will have limited economic gain for Russia, Moody's say

_____________

Mr Putin plans to attend the opening game with Saudi Arabia's Crown Prince Mohammed bin Salman on Thursday between Russia and Saudi Arabia at Moscow’s Luzhniki stadium, which will also stage the cup final on July 15. The president has admitted that he doesn’t think the Russian team is going to do very well, and he told Chinese reporters last week that his favourites include Spain, Germany, Argentina and Brazil. Russia is the lowest-rated World Cup team in world governing body Fifa’s world rankings at 70th.

Whether the World Cup is enough of a draw to jump-start tourism in smaller cities like Saransk - itself the butt of jokes in Russia - and Samara after the tournament is over will determine how much payoff there is for Mr Putin’s investment.

“Raising Russia’s brand value with a welcoming, peaceful, and fun sporting event” may help provide a longer lasting effect from hosting the World Cup, analysts at UBS  said in a report in May.

“Unfortunately, years of efforts and funds can be lost in a heartbeat when it comes to reputation, as recent geopolitical tensions show.”

While you're here
Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

UAE currency: the story behind the money in your pockets
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Teaching in coronavirus times
The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

'Cheb%20Khaled'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
While you're here...
Brief scoreline:

Manchester United 2

Rashford 28', Martial 72'

Watford 1

Doucoure 90'

While you're here