F1 In The Middle East

in OPINION by admin — March 27, 2010 at 12:00 pm | 0 comments

Formula One in the Middle East

Just a few years ago Formula One - and motorsport in general - did not have any presence in the Middle East. Now the region wants to be associated with what Formula One represents - technological excellence, innovation, the future.

Bahrain has not only built a venue that is among the very best in the world and deservedly won acclaim for its Grand Prix, but it has also built foundations for the current growth of interest and investment in Formula One across the Middle East.

The Bahrain International Circuit (BIC) staged its first Formula One event in April 2004, winning the FIA promoters’ trophy for that season.

“It was a real pleasure to bring Formula One to the Kingdom of Bahrain, and I’m pleased to confirm that this relationship will continue into the future,” commented the sport’s dealmaker extraordinaire, Formula One Management CEO Bernie Ecclestone at the time.

Since its inaugural race, the Bahrain event has drawn widespread acclaim for its facilities and its impressive programme of pre-race events. In 2006, it was honoured with hosting the season opener when Melbourne, the traditional first-race venue, was busy with the Commonwealth Games.

“The success of the Grand Prix has however reached even further than we dared hope when we embarked on this great adventure, and we are delighted to see both interest and involvement in the sport from fans, sponsors and other ventures around the region has blossomed from our achievements,” said Talal Al Zain, Chairman of the BIC. “Our new agreement with Mr Ecclestone ensures that Formula One will retain its home in the Middle East long into the next decade, and that the Kingdom will continue to host the world’s biggest sporting series.”

The news that Abu Dhabi would host a Grand Prix in 2009 on a new racing circuit on Yas Island was also greeted with much fanfare.

“We are delighted to bring Formula One to Abu Dhabi,” said Bernie Ecclestone. “It was a mutual decision to have a second race in this economically fast-growing region and I have no doubts that Bahrain and Abu Dhabi can co-exist perfectly. There are five countries waiting at the moment to have a race and we have decided to come

here - this should speak for itself.”

The Abu Dhabi government said it had invested $40 billion in the Yas Island development, so the cost of an annual Formula One race is relatively low by comparison given that the aim is to build up a huge tourist industry on the island. Abu Dhabi is also able to attract more local spectators to the event as it is the highest per capita city in the world, unlike Bahrain where wealth is much more restricted.

The development is all part of the plan to wean the economy off its dependence on oil. Abu Dhabi started its own airline, Etihad Airways, in 2003 in an effort to emulate its neighbour and rival Dubai as a tourist destination and spent a huge amount of money expanding the Abu Dhabi International Airport.

For Ecclestone such projects are a gift as he looks for ways to expand Formula One’s revenues in the future with a new generation of high-paying races to follow in the footsteps of Bahrain and Shanghai. These will probably replace some of the first generation events outside Europe which have not yet lived up to local expectations.

Bahrain may not originally have been a success in financial terms, with very small crowds, but the publicity generated has been good for the country. Bahrain’s plans to be a holiday destination have long lagged behind Dubai, and Abu Dhabi is now embarked on an

aggressive programme to catch up and rival both.

Past negotiations

Talk of establishing Formula One in the Middle East has been going on for decades. The first major event was in Dubai in December

1981 when British businessman Martin Hone organised a Grand Prix on a makeshift 1.6-mile track around the Hyatt Regency Hotel.

Five events were held and considerable appearance money lured out an impressive array of VIPs. There was talk at the time of the track being extended but the Dubai GP never materialised. The Arab world became more interested in rallying with the highly-successful Middle Eastern Rally Championship.

In 1995 there was a brief flurry of excitement in the region when it was announced that there were plans for a race to be held in Qatar. A year later Abu Dhabi announced that it had similar plans. Neither materialised there either.

By 1997 there was talk of a race in the war-shattered Lebanese capital Beirut in an effort to restore the international image which the city had enjoyed in the 1950s when it was one of the most glamorous spots in the Mediterranean. In August 1998 Lebanese businessman Georges Boutegy announced that he has signed a draft agreement with Formula One boss Bernie Ecclestone to hold a Grand Prix in Beirut for 2003 and that Formula One’s Race Director Charlie Whiting had been to the Lebanon to inspect a proposed track.

The plan announced at the time was for a track to run through a part of the city that has been destroyed in the fighting, but being rebuilt by a company owned by the Lebanese Prime Minister Rafic Al-Hariri. This led to a dispute when another businessman, Khaled Altaki, announced that he was going to build a new circuit close to the sea outside the city.

Al-Hariri was replaced as Prime Minister and the new government announced that it was making major cutbacks. The Beirut GP has not been heard of since. During his state visit to Beirut just a few weeks later Prince Albert of Monaco announced that his principality would be willing to help organise an event. The rest, as they say, is history.

In 1999, however, Ecclestone visited both Dubai and Cairo to discuss races with the local authorities. The Egyptians were keen to discuss a Grand Prix in the desert, as a way of rebuilding the country’s tourist industry which had been virtually destroyed in

November 1997 when Islamic extremists massacred 58 international tourists in Luxor. Dubai was also keen to promote tourist trade, using tourism as a means of replacing lost revenue as oil reserves dwindled.

In the end Bahrain beat them all.

Clive Couldwell is the author of ‘Formula One – Made in Britain’ – all about the British influence on F1. He has also written about Formula One for Sunday Business and the London Evening Standard newspapers, Hilton Guest magazine, as well as the F1 teams themselves with F1 Weekend (Benetton - now the Renault F1 - Formula One Racing Team), and Jordan Grand Prix’s ‘J’ magazine.