According to the most recent Purchasing Managers Index report from Qatar Financial Centre, the FIFA World Cup caused a sharp increase in economic activity in November and December.

Qatar’s wholesale, retail, and service industries saw rapid expansion, which led to a record-breaking rise in the prices of products and services. The PMI for Qatar is a composite single-figure measure of the non-energy private sector’s performance based on new orders, output, employment, supplier delivery times, and stock of purchases.

Indicating a near-stabilization of overall non-energy private sector business conditions at the end of 2022, the PMI increased for the second consecutive month, from 48.8 in November to 49.6 in December.

Meanwhile, in December, private sector non-oil output increased for the thirty-first month. Since November, the pace of growth has mostly stayed the same and is significantly higher than the average throughout the survey period.

The improvement in supply chains and a delay in new work caused by construction offset the November output index of 62.8. In contrast to a long-term trend of 54.8, the index trended at 69.0 during the year, the highest value in the survey’s history.

“The FIFA World Cup Qatar 2022 makes its mark on the Qatari economy in December, with another rapid increase in business activity fueled by the retail and services sectors. The December data round off a stellar 2022 with the Output Index and headline PMI trending at 69.0 and 57.7, respectively, the highest annual averages since the survey began in 2017,” Yousuf Al-Jaida, CEO at QFC Authority, said in a statement.

“The tournament’s legacy is also looking secure, with widespread reports from companies of post-competition business opportunities and an expected permanent boost to tourism. The Future Activity Index, tracking the 12-month outlook, rose to a 29-month high in December,” Al-Jaida added.

The financial services industry also saw a sharp rise in commercial activity in the final month of 2022, marking the sector’s most significant gain in nearly six years. While fees for services grew for the first time in six months, input prices paid by financial services companies climbed very slightly in December.