Formula One is not just one of the important international sporting events, but an economic and investment project as such. This is because hosting a F1 Grand Prix will allow the host country to reap huge revenues, which will eventually lead to stimulating several economic sectors, particularly those of tourism, transport, trade and telecom.

Stemming from this economic perspective, the Singapore Stock Exchange approved the listing of F1 by giving it the go-ahead for a $2.5 billion (Dh9.2 billion) stock sale. The private equity firm CVC Capital Partners, which owns two-thirds of the shares, is expected to launch a marketing campaign for the new holding company.

As is well known, both Abu Dhabi and Manama annually host F1 competitions, and the credit must be given to the two Gulf capitals for bringing this sport to the Middle East for the first time ten years ago, a move that resulted in creating an impetus for multiple sectors.

Last week, Bahrain generated $900 million in revenues, directly and indirectly, from hosting the F1 race. Abu Dhabi’s F1 Grand Prix Grid, to be held in November, is expected to achieve another revenue high. These revenues will add significantly to the economies of both. Tickets to attend Bahrain’s F1 Grand Prix were sold out despite confusion sparked by the opposition to sabotage the F1 races in the last three years. Such attempts by the opposition have failed.

In response to the opposition’s attempt to undermine Bahrain’s F1 Grand Prix, Bernie Ecclestone, who owns the commercial rights to Formula One, has repeatedly made it clear that “politics should not be involved in sports.”

Paramount importance

“Bahrain’s commitment to Formula One has been clear from the very outset. While obviously the kingdom of Bahrain has had to put its national affairs first I have never been in any doubts that restoring the Gulf Air Bahrain Grand Prix has been of paramount importance,” he said. “In eight years of my relationship with Bahrain I have always been confident that they will produce something special.”

The problem is that the Bahraini opposition is immature and behaves irresponsibly. The Bahrain Grand Prix is a national project that has to be managed by the government and in turn generates sizable revenues.

The funds will definitely benefit broad swathes of its labour force as well as investors, including those who consider themselves part of the opposition which is trying to harm the country and sabotage the economy.

The opposition’s attempts will be in vain. The GCC governments are exerting themselves to raise people’s living standards, create job opportunities and provide the best services to their citizens. This happens at a time when the opposition — whether the Bahraini opposition bloc Al Wefaq and its affiliated groups or the Muslim Brotherhood in the UAE — are trying to sabotage and tamper with the destiny of their countries, indifferent to the damage that this will have on the economy and the interests of people, including a lack of job opportunities.

Luckily, the marketing of Abu Dhabi F1 Grand Prix, which is due to be held in November, coincided with Bahrain F1 Gran Prix. The Formula One night race was a major success and reflects the technical and management capacity of the GCC states and the considerable experience they have acquired in hosting international events.

Stock exchange

Since the F1 events, which grows year after year, bear such economic clout, Abu Dhabi and Manama can expand their activities and turn it into a sports management company operating in accordance with business principles to help both maximise their gains further. Also, the UAE and Bahrain may consider the listing of this company on their stock exchanges.

In view of the fact that they form important cogs of the GCC Common Market, they can consider establishing a joint venture to be listed on the stock exchanges in the UAE and Bahrain, especially since there is non-stop coordination between the Yas Marina Circuit in Abu Dhabi and the Sakhir Circuit in Bahrain, both among the best in the world.

Such an approach will undoubtedly contribute to the development of Formula One and other sports and help boost the financial market with a new business whose success will lead to establishing other sports-related companies in the UAE and Bahrain and even in the remaining GCC countries.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.