What is it about IPL that attracts Middle Eastern companies?

As the Indian Premier League (IPL) grows in scale and viewership, marketing partnerships with the tournament generate greater visibility and revenue for brands worldwide.

On Sunday, it was revealed that Qatar Airways would take the lead sponsorship role for Bengaluru's Royal Challengers Bangalore (RCB), a Diageo-owned IPL team.Muthoot Fincorp sponsored RCB for three years. In addition to signing actor Deepika Padukone as its brand ambassador, Qatar Airways is estimated to spend $75 crore on the sponsorship for three years. This deal is the second-largest sponsorship in the history of IPL.

With a population of fewer than 30 lacks, Qatar Airways is the state-owned airline of the smallest Middle East Asia country. With a record net profit of USD 1.54 billion during FY22, it increased revenues by 78% compared to last year to USD 14.4 billion.

Unacademy was replaced as an official partner of the BCCI for the IPL by the Saudi Tourism Authority (STA) only in February.

The Saudi Arabian government's Saudi Aramco, the world's largest oil company and business-to-business player, sponsored the Orange Cap and Purple Cap titles in 2022, making it the second Saudi Arabian institution associated with India's most sought-after property. The sponsorship is estimated to be worth Rs 60 crore per season.

Cricket is regarded as the world’s second most popular sport, with an estimated 2.5 billion fans worldwide. According to BARC data, IPL alone drew in more than 500 million viewers during its last season, accounting for its immense popularity among brands who want to target the world’s second most profitable consumer market quickly and effectively. Even the Middle East is becoming increasingly keen on cricket, a region not traditionally associated with this sport. Experts attribute this interest to things such as the high numbers of Indian ex-pats living in gulf countries and IPL shifting venues to UAE during the pandemic.

Sam Balsara, the founder, chairman, and managing director of Madison World, says: "India is the only shining nation in a drab, hopeless world. In India, people are eager to pitch their tents, and those who have done so in the past desire larger tents."

“Saudi Tourism and Qatar Airways are trying to woo Indian tourists and Indian ex-pats across the Gulf countries with their most popular game at a time when the Indian economy continues to grow despite a global slowdown,” echoes Lyod Mathias, angel investor, and brand strategist.

What makes Aramco a B2B brand?

The association between Qatar Airways and STA with IPL is understandable, but people wonder what Aramco is doing there.

“Building recognition and recall in the world’s largest and youngest consumer base is necessary for all global brands today,” says Dr. Sandeep Goyal, MD of Rediffusion Group. Therefore, visibility in India is crucial whether you are a B2B or B2C brand. Each brand has different aspects, including a financial, employer, and social one.

Aramco is also expanding its footprint in India, according to experts. It had previously attempted to have a deal with Reliance Industries, but that did not work out. A refinery project is also proposed for Ratnagiri (Maharashtra), but it has been delayed due to local protests and legal obstacles to land acquisition.

Mathias speculates that the company may eventually set up petrol pumps as well as a B2B business.

According to the company's website, "India has tremendous potential for start-ups, technologies, and investment opportunities in oil and gas, and Aramco India's Business Origination is eager to partner with and strengthen existing ties between Saudi Aramco and its Indian customers."

Saudi Aramco has a lot of money, according to advertising veteran Ramesh Narayan, and Saudi Arabia is its largest shareholder. An indication of things to come was their pavilion at the Dubai Expo the previous year. In an effort to shed its previous reputation as an orthodox religious nation, Saudi Arabia is now actively positioning itself as a welcoming tourist destination.

Sports are a wonderful way to gain a positive image in such situations, although companies need to tread carefully, as Shell did after its sponsorship of British Cycling. People called it an outrageous attempt at greenwashing," Narayan said.

“The air traffic from India is massive. Middle East’s people love IPL.  In addition, Indians have discovered the joys of traveling,” Narayan explained. With Qatar only a few steps across the Arabian Sea, they would have realized they had lost time and dollars to neighboring Dubai in terms of tourism. I anticipate more investment from Middle Eastern countries in India.”

"Cricket is a global game with a global audience, and it is an effective way to unite people of different backgrounds," said Qatar Airways Chief Executive Akbar Al Baker.

Saudi Tourism Authority APAC President, Alhasan Aldabbagh, sees IPL as an excellent opportunity to increase their reach among aspirational Indians. "India represents immense potential as it is expected to become Saudi Arabia's largest tourism market by 2030," he said.

Five of the six franchises in UAE's franchise-style league are owned by Indians. Future brand collaborations between India and Gulf nations may be numerous.