The Economist: Qatar crisis to continue for years, heavy economic losses likely

Boys take picture of a boat on the corniche in the Qatari capital Doha on July 2, 2017. (AFP)

The Economist Intelligence Unit has said it expects the current diplomatic crisis with Qatar to take years – rather than months – to resolve and will have a negative impact on Doha’s economy over the years.

In a published report titled “No end in sight: The GCC-Qatar crisis”, the publication also said “the longer Qatar remains subject to economic sanctions, the worse the implications will be for internal political stability, particularly if the welfare of Qatari citizens is affected by the crisis”.

The report also advised corporates institutions to conduct due diligence on their potential local partners inside Qatar before entering into business agreements given reports of various Qatari individuals and entities with links to terrorist organizations.

“Those considering further investments in Qatar should be careful and take measures to mitigate their exposure to local-currency fluctuations. A growing number of foreign banks (outside of Qatar) are no longer buying the Qatari riyal, which they are now seeing as unprofitable to exchange,” the report’s executive summary noted.

Saudi Arabia’s cabinet of ministers agreed on Monday that current procedures will continue until the Qatari authorities are committed to the implementation of just and all demands that guarantee combating of terrorism and achieving of stability and security in the region.
 

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Last Update: Wednesday, 20 May 2020 KSA 09:49 - GMT 06:49
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