The Business of Sports… Economic Driver

It’s a sport that has long-appealed to business executives attracted by its potential for networking and deal-making, but Dubai’s burgeoning golf scene represents a significant economic opportunity in its own right.

Tiger Woods has called it a “great venue” that reminds him of being back home in Florida; Greg Norman rates it amongst the 12 best tournaments in the world; and Ernie Els clearly has a special affinity for it, claiming the title a record three times. If any further proof were needed that the Dubai Desert Classic has finally arrived as an event of global significance, then the endorsement of the world’s biggest stars is surely it. Without doubt, the event has become the glittering centrepiece of Dubai’s bid to become a new hub for world golf.

Mohamed Juma Buamaim, Vice-Chairman and CEO of Golf in Dubai – the promoters and organisers of the Dubai Desert Classic – is the man at the forefront of this movement. One of the first UAE nationals to take to golf in the early 1990s, Buamaim played a key role in streamlining the affairs of the game in his capacity as a board member of the UAE Golf Association and Chairman of the Junior Development Programme. Well-known for his formidable marketing skills, he is also widely credited with being the man who first persuaded Tiger Woods to play in Dubai. Since 2001, Woods has made five appearances in the Dubai Desert Classic, winning the title twice – in 2005, and again earlier this year.

Buamaim believes his event, now in its 20th year, has been instrumental in helping put Dubai on the sporting map. “ It fits well with the ambitions and visions of Dubai,” he explains. “Building sporting infrastructure of international standards is just one part of Dubai’s drive to develop the emirate into a thriving business and tourist centre.”

Indeed, in the words of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of the emirate, Dubai has created the “right environment where big ideas and thinking can take off”. That environment – and the modern facilities that have sprung up all over the city – has led to making Dubai the sporting capital of the region. “As the city is growing, so is golf because it’s very much a business-oriented sport,” continues Buamaim. “It’s the way it’s being marketed, making it attractive to so many people. Big names like Tiger Woods, Ernie Els, Greg Norman and Colin Montgomerie have already designed their signature courses or are in the process of doing so, mirroring the image of what’s happening with all those high-rise buildings in Dubai.”

In fact, almost 20 new courses are scheduled to open over the next three years and more are already in the pipeline. But far from seeing this as a threat to existing operators, Buamaim thinks the increased competition will help further cement Dubai’s reputation as the world’s premier golfing destination. “With all these golf courses coming up, you will see a phenomenal growth in golf tourism here,” he explains. “ Right now we have too many golfers and not enough courses. It has become impossible to get a tee time on the weekend if you’re not a member at one of the clubs. The demand is there and it will only grow with so many residential properties coming up in and around golf courses. I think it’s fair to say that Dubai is leading the way in positioning itself as a global destination for golf.”

The figures speak for themselves. A record 62,446 fans turned up at the Emirates Golf Club to watch proceedings during the 2008 event (beating the previous best of 55,606 in 2007), while television exposure in over 50 countries – a reach of over 680 million households – made the 2008 Dubai Desert Classic the most successful in the tournament’s 19-year history. “Our goal is to try and raise the bar even higher and maintain the standards of excellence set over the years,” says Buamaim.

And if previous efforts are anything to go by, we can expect plenty more from the event in the future – for if there’s one thing shrewd marketers like Buamaim understand, it is the importance of star power. Tiger Woods picked up a cheque for $420,000 for winning the 2008 event, and if rumours are to be believed, a further $3 million in appearance fees. “The quality of field it attracts every year, as well as the mature and professional organisational aspect of the event have been key elements for the success of the Dubai Desert Classic,” admits Buamaim. “And don’t forget that ‘Brand Dubai’ was perhaps the biggest factor in establishing the tournament’s credentials as a jewel in the crown of early season European Tour events.”

This reputation for excellence and attention to detail has certainly contributed to the economic boom of the last few years and bodes well for sustained growth over the coming decade. Perhaps more importantly, however, the golfing market within the emirate itself is growing, and the regular visits of superstars like Tiger Woods and Ernie Els have had a positive impact among UAE’s junior golfers. “It was a matter of pride for all of us in the UAE when Khalid Yousuf, a product of the UAE Golf Association’s Junior Development Programme, joined the elite field this year, becoming the first UAE national to compete on the global stage,” he says. “The dream of producing a homegrown player to feature in the Classic has finally become a reality.”

It’s the million-dollar question: can Dubai’s success in developing major sporting brands provide a significant engine of economic growth for the region? Buamaim certainly feels that raising the profile through sports is a key strategy. “We feel international sporting events – and there are many being held in Dubai, like the Dubai World Cup and Dubai Tennis Championship, to name a few – will gain recognition for the city as a whole and its development as an attractive tourist destination,” confirms Buamaim. “And of course, we have best of the airlines and hotels, making Dubai the ideal destination for hosting any international event. It has more than cash to invest – it has expertise.”