Qatar suffers from high cost of food imports amid rift with Gulf neighbors

The decline of Qatari imports indicates disorder in trade movement and supply chains. (Shutterstock)

The Qatar crisis has presented an opportunity for Turkey and Iran to supply food products to Doha via cargo aircrafts for a higher cost than Saudi Arabia, according to Al Arabiya.net.

Riyadh used to provide around 90% of high quality consumer goods to Doha via land routes, which were blocked following the decision to boycott Qatar.

The crisis now enters its third month and official Qatari data has shown the price which Doha paid as a result of the prolonged conflict.

The alternative trade routes which Qatar has created have not compensated for trade with its neighbors through their ports and territories.

According to official Qatari data, imports in June witnessed a decline of 40% on the same month in 2016 and a 38% fall from May this year, Reuters reported.

The decline of Qatari imports indicates disorder in trade movement and supply chains.

Closing Saudi borders which were used to supply Qatar with food, dairy products and construction material and suspending cargo services from the UAE led to delayed shipments until Doha arranged alternative routes.

Qatari exports except for gas decreased, particularly petroleum exports which slumped by 22%. Non-petroleum exports also declined by 15% and helium exports, which were distributed via Saudi borders, were negatively affected.

The price of food products in June increased at the fastest pace in two years by 2.4% compared with June 2016 and by 2.5% compared with May 2017.
 

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