Abu Dhabi to step up sporting sponsorship in bid for new revenue streams

Abu Dhabi agencies expect to ramp up their engagement in sporting activities this year as they tap into diverse revenue streams.

The ability to build legacy infrastructure as well as an Emirati workforce, makes big sports events an important player in the economy, said Talal Mostafa Al Hashemi, the technical affairs department director at Abu Dhabi Sports Council.

The council is also adding sports events in the capital, with a three-day high diving event starting February 27.

“We will work with Abu Dhabi Tourism and Culture Authority this year on our agenda to promote Abu Dhabi abroad,” he said on the sidelines of Arabian Sport and Sponsorship Forum.

Despite the fall in oil prices and a slowdown in the global economy, Mr Al Hashemi expects sports sponsorships to remain at the same level this year.

Globally, the sponsorship value for various sports events was US$45.3 billion last year, slightly down from $45.6bn in 2014, according to Frank Saez, the managing director of SMG Insight/YouGov.

Some sponsors would like to sit back this year and evaluate their sponsorship deals. Etihad Airways, one of the heavyweight sponsors in the UAE, lends its name to F1 Etihad Airways Abu Dhabi Grand Prix and is the main club partner of Manchester City Football Club, among the carrier’s 100 partnerships for sports and cultural events.

“We need to make sure that we pause a bit in 2016 and also be mindful of the macroeconomic factors that impact the travel industry,” said Patrick Pierce, the vice president for sponsorships at Etihad. “We need to make sure we take a step up, evaluate our diverse portfolio [of sponsorships], making sure we are maximising all the value that goes with the various partnerships, before we step forward and expand into other relationships.”

Etihad also sponsors the GAA Hurling All-Ireland Senior Championship as well as England national teams for men’s, women’s and disability cricket.

Currency fluctuations, a slowdown in the Chinese economy, and changing global travel patterns are forcing sponsors such as Etihad to plan years ahead.

Etihad wants to look “five to 10 years down the road and where can we position our brand in locations where there’s going to be increased international travel, such a India, Korea and South East Asia”, Mr Pierce said.

Its current portfolio is “so robust that before we add any­thing else we ought to understand which ones are accomplishing our goals and perhaps make difficult decisions in discontinuing existing relationships,” he said.

“We need to have a bit more discipline in our selection process – we can’t be all things to all people in all geographies in all times, it’s not sustainable.”

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