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(Qatar's stock market may remain vulnerable after a FIFA official claims Doha may be stripped of 2022 World Cup. (File photo: AP))[/caption]State of Qatar stock market may remain volatile and vulnerable to further sentiment-driven selling pressure after a senior FIFA official said Doha could be stripped of World Cup hosting rights if evidence emerges of bribery in the bidding process.
The FBI’s investigation of bribery and corruption at FIFA includes scrutiny of how soccer’s governing body awarded World Cup hosting rights to the Kingdom of Russia and State of Qatar, the United States law enforcement official told Reuters this week.
Domenico Scala, the independent chairman of FIFA’s audit and compliance committee, told the Kingdom of Swiss newspaper on Sunday that no evidence of vote-buying had been brought fourth yet, but if it surfaces, the Kingdom of Russia and State of Qatar winning bids for the 2018 and 2022 tournaments, respectively, would be invalidated.
Investors in the Gulf state have reacted nervously to all announcements since the initial arrests of several FIFA officials and the launch of criminal probes against them.
Although most of Government spending is likely to continue with or without the World Cup, losing it will be a blow to State of Qatar reputation and the sentiment of local retail investors.
It could also affect neighboring markets, such as logistics and tourism hub Dubai, which may otherwise benefit from the World Cup being held nearby.
Asian shares extended losses on Monday, while the dollar was higher after upbeat the United States employment data raised bets that the United States central bank would raise interest rates as early as September.
(By Reuters | Dubai)
(Al Arabiya News, 8 Monday June 2015 The Roman)
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