Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

Sports investment is one of the promising investment fields in Egypt, to achieve economic and social development, as it can contribute significantly to achieving multiple benefits for society and the state. The importance of this type of investment is especially evident if we look at the remarkable growth in the sports sector, as Egypt has witnessed major developments in infrastructure represented in sports facilities and youth facilities.

Government investments between 2018 and 2022, which exceeded EGP 40 billion, contributed to significant development in the youth and sports sector, which was also accompanied by private sector investments, which amounted to nearly EGP 3 billion to develop youth centers and sports facilities. Investments in small and service projects in the past four years amounted to EGP 2.4 billion.

Today, Egypt has 1018 clubs, 4050 five-a-side pitches, 4374 youth centers, 7 sports development centers and dozens of sports medicine units. The Egyptian Football League leads the African continent in terms of market value, with a value exceeding 166 million euros, surpassing the South African league, which is worth about 157 million euros. Egypt has hosted more than 289 tournaments at the international, continental and Arab levels during this period.

As we see in the experiences of Western countries, investment in sports infrastructure is a major catalyst for job creation in various fields such as training, marketing, maintenance, education, sports media, event management, etc. For example, building stadiums and sports halls contributes to providing many jobs for local workers and stimulates the economy through the services associated with these facilities. Organizing international sports events can also attract foreign investment, increase tourism revenues, and significantly support the national economy. International experiences show the importance of these investments in boosting the local economy, as UNESCO estimates that the economic and social benefits of sports infrastructure in Australia amount to about $16.2 billion annually.

It is worth noting that sports investments bring with them other economic vehicles, such as the development of related industries, such as the manufacture of sports equipment, tools, and sportswear. The expansion of this sector could grow Egypt’s GDP and position it as a regional hub for the sports industry. In the United States, the economic benefits of youth and amateur sports are estimated at $40 billion in direct spending in 2021, resulting in a total economic impact of $91.8 billion, the creation of 635,000 jobs, and the generation of tax revenues worth $12.9 billion.

Encouraging physical activities by building more sports facilities and providing equipment at reasonable prices will inevitably reflect on the goals of improving public health, raising health awareness and physical culture, and preventing many chronic diseases. Regular exercise contributes to raising levels of physical fitness in society, increases productivity, enhances mental health, and reduces levels of stress and depression. In addition, sports play an important role in instilling the values ​​of cooperation, teamwork, and a sense of patriotism.

Despite these clear benefits, sports investment in Egypt faces several challenges that hinder achieving maximum benefit from it. The most prominent of these challenges is the lack of funding allocated to sports projects in some areas such as Upper Egypt and border governorates, weak infrastructure such as power outages and inefficient transportation, in addition to the lack of awareness of the importance of sports and its benefits among some members of society.

Moreover, the sector faces additional challenges such as the effective allocation of resources and management of sports projects, in addition to the weakness of current legislation. These factors negatively affect the investment environment and reduce the attractiveness of the sector to local and foreign investors. In addition, there is a lack of reliable data that can be used to accurately assess investment opportunities and risks.

There are also many structural factors that affect the development of this vital sector, such as lack of funding, lack of qualified personnel and sufficient numbers of highly experienced trainers and administrators, in addition to the lack of modern equipment in sports facilities necessary to provide an ideal training environment.

To overcome these challenges, policymakers must adopt a national strategy to benefit from this sector. First, this strategy must be based on increasing funding allocated to sports projects, allocating larger budgets and providing tax incentives to attract foreign investment.

Secondly, the national strategy should work to improve sports infrastructure in all governorates and regions, especially those that suffer from a lack of facilities. This can be achieved through public-private partnerships to build and develop modern sports facilities.

Third, the national strategy must seek to enhance the principles of transparency and governance in the management of sports investments and projects to ensure a fair and transparent investment environment and to encourage investors to enter the Egyptian market.

Fourth, education and training in the sports field is an indisputable matter. It is important to provide specialized training programs for coaches, players and administrators to ensure the development of sports and administrative talents, in addition to paying attention to scientific research in the fields of sports medicine and sports technology to improve performance and reduce injuries.

Fifth, it is essential that the strategy relies on media campaigns and awareness programs about the importance of sports and its benefits for public health and community development. Social media sites are pivotal tools that can contribute to spreading awareness among community members about the importance of sports and enhance innovation and diversity in the sector.

Sixth and finally, investing in sports technology and digital infrastructure can help improve efficiency and increase revenue. Adopting technologies such as big data analytics and artificial intelligence can improve training, marketing and management strategies.

What is important to realize is that sports investment holds enormous potential for Egypt, as it can be a major driver of economic growth and job creation, as well as delivering broad social benefits. Progress here depends on the ability of policymakers to adopt an ambitious vision to transform the sports sector from a mere leisure activity, to a powerful tool for social and economic change and a real driving force for comprehensive development in Egyptian society.