Saudi Arabia and other Arab countries that have cut ties to Qatar issued a steep list of demands to end the crisis, insisting that Doha curb diplomatic ties with Iran and sever all ties terrorist organisations, specifically the Muslim Brotherhood.
In a 13-point list presented to the Qataris by Kuwait, which is helping mediate the crisis, the countries also demand an end to Turkey’s military presence in Qatar and for it to close Al Jazeera and its affiliate stations.
Saudi Arabia, Egypt, the UAE and Bahrain broke ties with Qatar this month over allegations Doha funds terrorism,an accusation that US president Donald Trump has echoed. Those countries have now given Qatar 10 days to comply with all of the demands, which include paying an unspecified sum in compensation.
Qatari officials did not immediately respond to a request for comment.
But the list included conditions that Doha had already insisted would never be met, including shutting down Al Jazeera.
Qatar’s government has said it will not negotiate until Arab nations lift their restrictions.
Only a day earlier, US secretary of state Rex Tillerson had warned the demands must be "reasonable and actionable."
The US issued that litmus test amid frustration at how long it was taking Saudi Arabia and others to formalise a list of demands, complicating US efforts to bring about a resolution to the worst Gulf diplomatic crisis in years.
According to the list, Qatar must refuse to naturalize citizens from the four countries and expel those currently in Qatar, in what the countries describe as an effort to keep Qatar from meddling in their internal affairs.
They are also demanding that Qatar hand over all individuals who are wanted by those four countries for terrorism; stop funding any extremist entities that are designated as terrorist groups by the US; and provide detailed information about opposition figures that Qatar has funded, ostensibly in Saudi Arabia and the other nations.
Qatar vehemently denies funding or supporting extremism. But the country acknowledges that it allows members of some extremist groups such as Hamas to reside in Qatar, arguing that fostering dialogue with those groups is key to resolving global conflicts.
Qatar’s neighbours have also accused it of backing Al Qaeda and ISIL’s ideology throughout the Middle East.
Those umbrella groups also appear on the list of entities whose ties with Qatar must be extinguished, along with Lebanon’s Hizbollah and the Al Qaeda branch in Syria.
More broadly, the list demands that Qatar align itself politically, economically and otherwise with the Gulf Cooperation Council.
The Iran provisions in the document say Qatar must shut down diplomatic posts in Iran, kick out any members of Iran’s elite Revolutionary Guard in Qatar, and only conduct trade and commerce with Iran that complies with US sanctions.
Under the 2015 nuclear deal, nuclear-related sanctions on Iran were eased but other sanctions remain in place.
Cutting ties to Iran would prove incredibly difficult.
Qatar shares a massive offshore natural gas field with Iran which supplies the small nation that will host the 2022 FIFA World Cup its wealth.
Showing posts with label Qatar Tourism News. Show all posts
Showing posts with label Qatar Tourism News. Show all posts
Wednesday, 28 June 2017
Tuesday, 27 June 2017
QATAR: Qatar Tourism Authority Requests Hotels To Standby Tourists Affected By Gulf Crisis
Qatar Tourism Authority (QTA) has urged hotels in the country to “extend a helping hand” to tourists and visitors irrespective of their origin or nationality.
The circular sent to hotel establishments yesterday aims to provide domestic and overseas visitors to Qatar “the best of our nation’s hospitality regardless of background.”
In pursuit of excellence and as we go through the current exceptional circumstances, we are certain that you will continue to adhere to professional standards of conduct when dealing with tourists and visitors, QTA said.
Such kind gesture and assistance in accordance with the ‘Global Code of Ethics for Tourism’ by the United Nations World Tourism Organisation will ensure that all visitors’ rights are respected and protected, QTA has reminded.
In the same circular, QTA also requested hotels to provide support to guests who need to change or cancel their reservations due to the ongoing situation.
QTA expressed confidence that hotels will continue to fulfil their role as ambassadors to Qatar and the traditional values of hospitality that our people are renowned for.
QTA also thanked hotels for their efforts on supporting the tourism sector, which has achieved international industry recognition for its authentic hospitality and impeccable service.
Article 1 of the Code cites tourism’s contribution to mutual understanding and respect between peoples and societies.
The understanding and promotion of the ethical values common to humanity, with an attitude of tolerance and respect for the diversity of religious, philosophical and moral beliefs, are both the foundation and the consequence of responsible tourism, the provision said.
Stakeholders in tourism development and tourists themselves should observe the social and cultural traditions and practices of all peoples, including those of the minorities and indigenous peoples and to recognise their worth, it added.
The host communities, on the one hand, and local professionals, on the other, should acquaint themselves with and respect the tourists who visit them and find out about their lifestyles, tastes and expectations; the education and training imparted to professionals contribute to a hospitable welcome, the provision continued.
The Code also stresses the role of tourism in attaining sustainable development, especially in safeguarding the environment.
It also cites tourists’ rights in going to various places of the host country without being subject to excessive formalities or discrimination.
The circular sent to hotel establishments yesterday aims to provide domestic and overseas visitors to Qatar “the best of our nation’s hospitality regardless of background.”
In pursuit of excellence and as we go through the current exceptional circumstances, we are certain that you will continue to adhere to professional standards of conduct when dealing with tourists and visitors, QTA said.
Such kind gesture and assistance in accordance with the ‘Global Code of Ethics for Tourism’ by the United Nations World Tourism Organisation will ensure that all visitors’ rights are respected and protected, QTA has reminded.
In the same circular, QTA also requested hotels to provide support to guests who need to change or cancel their reservations due to the ongoing situation.
QTA expressed confidence that hotels will continue to fulfil their role as ambassadors to Qatar and the traditional values of hospitality that our people are renowned for.
QTA also thanked hotels for their efforts on supporting the tourism sector, which has achieved international industry recognition for its authentic hospitality and impeccable service.
Article 1 of the Code cites tourism’s contribution to mutual understanding and respect between peoples and societies.
The understanding and promotion of the ethical values common to humanity, with an attitude of tolerance and respect for the diversity of religious, philosophical and moral beliefs, are both the foundation and the consequence of responsible tourism, the provision said.
Stakeholders in tourism development and tourists themselves should observe the social and cultural traditions and practices of all peoples, including those of the minorities and indigenous peoples and to recognise their worth, it added.
The host communities, on the one hand, and local professionals, on the other, should acquaint themselves with and respect the tourists who visit them and find out about their lifestyles, tastes and expectations; the education and training imparted to professionals contribute to a hospitable welcome, the provision continued.
The Code also stresses the role of tourism in attaining sustainable development, especially in safeguarding the environment.
It also cites tourists’ rights in going to various places of the host country without being subject to excessive formalities or discrimination.
Friday, 23 June 2017
QATAR: Eid Al-Fitr Holiday To Begin On June 25th
The Eid Al-Fitr holiday will begin on Sunday (June 25), which means tomorrow will be the last working day for public sector employees before the break, the Emiri Diwan has announced.
Ministries, government departments and other public entities will be closed for 11 days including weekends, in line with previous years.
They will re-open on Tuesday, July 4.
The exact date of Eid has yet to be announced, pending the sighting of the new moon, but it is expected to begin on Sunday, June 25.
Eid Al Fitr is the festival that marks the end of Ramadan and is usually celebrated with a morning prayer, and family events in malls and public spaces around town later on in the day and evening.
Employees working for private companies typically get around three days’ holiday for this Eid.
However, with shops, cafes and restaurants open throughout the break, service sector staff may be expected to work.
The governor of Qatar Central Bank will set the holidays for those working in Qatar’s financial sector – including QCB staff, QCB-supervised financial institutions and employees of Qatar Financial Markets Authority.
What are you planing for the Eid holiday?
Ministries, government departments and other public entities will be closed for 11 days including weekends, in line with previous years.
They will re-open on Tuesday, July 4.
The exact date of Eid has yet to be announced, pending the sighting of the new moon, but it is expected to begin on Sunday, June 25.
Eid Al Fitr is the festival that marks the end of Ramadan and is usually celebrated with a morning prayer, and family events in malls and public spaces around town later on in the day and evening.
Employees working for private companies typically get around three days’ holiday for this Eid.
However, with shops, cafes and restaurants open throughout the break, service sector staff may be expected to work.
The governor of Qatar Central Bank will set the holidays for those working in Qatar’s financial sector – including QCB staff, QCB-supervised financial institutions and employees of Qatar Financial Markets Authority.
What are you planing for the Eid holiday?
Thursday, 22 June 2017
QATAR: Mondrian Doha Opening September 2017, US $240 Per Room
Mondrian Doha has confirmed it will have a soft opening in Q2 2017, marking its debut in the Middle East.
The 270-room property designed in collaboration with Marcel Wanders is set to feature eight restaurants and bars, and will have its grand opening in September 2017 after the Q2 soft launch, with room rates set to start from US $240.
Guests can choose from five room categories including penthouse suites, studio suites, one and two bedroom suites and a range of standard guestrooms.
Sam Nazarian, founder & CEO, sbe (which acquired Morgans Hotel Group) commented in a press statement: We are delighted to open our first hotel in the Middle East in Doha, Qatar which is one of the most dynamic cities in the region.
We’re additionally set to open two more hotel properties in Dubai in 2017 and 2018 and a number of restaurants.
I know that Mondrian Doha will be an incredible destination for international and local travellers alike. It will be also a fantastic destination for the locals to experience all our culinary venues.
The hotel will incorporate bespoke Marcel Wanders design features with influences from local patterns, ornate Arabic writing and historic souks.
Standout elements include giant columns with golden eggs, a ‘tree of life’ comprising flowers, falcon video art, giant shisha, patterned carpets, ornate stained glass and intricate mosaic tiling.
Structurally, the building of Mondrian Doha is shaped like a falcon, with many references to the national bird of Qatar also found inside; from paintings and portraits to falcon headpieces and ornaments.
There will also be a stained glass dome skylight on the 27th floor, along with a four-level high spiral staircase which leads guests up to a viewing platform.
The location of the hotel next to Lagoona Mall in the West Bay area also acts as a gateway to the new Lusail City development.
The eight restaurants and bars include a partership with Wolfgang Puck, bringing his concept Cut by Wolfgang Puck to Qatar for the first time.
Japanese Chef Masaharu Morimoto is set to introduce Morimoto Doha - the first eponymous Morimoto outpost to open in the Middle East. Moreover, the hotel will host a Magnolia Bakery located in the lobby, and a number of other concepts including a Qatari restaurant and a burger restaurant, cigar lounge and shisha terrace.
Mondrian Doha will also offer an ESPA spa, with over 2,000m2 sqm of space. Features include separate areas for men and women, 11 treatment rooms, a 'spa within the spa' and hammam facilities as well as specialised areas for disabled guests.
The property offers a grand and spacious wedding and multi-purpose ballroom with over 2,000m2, that can hold up to 1,500 guests.
The ballroom has ornate plaster ceiling domes with crystal chandeliers, as well as a hidden VIP Bridal suite with 15 metre high columns, and a grand staircase entrance.
Mondrian Doha also has a standalone meeting floor with meeting and conference facilities.
Mondrian Doha has confirmed that it will have additional hotel facilities including an entertainment floor complete with a nightclub, an indoor pool and skybar, plus a flower and retail store.
The 270-room property designed in collaboration with Marcel Wanders is set to feature eight restaurants and bars, and will have its grand opening in September 2017 after the Q2 soft launch, with room rates set to start from US $240.
Guests can choose from five room categories including penthouse suites, studio suites, one and two bedroom suites and a range of standard guestrooms.
Sam Nazarian, founder & CEO, sbe (which acquired Morgans Hotel Group) commented in a press statement: We are delighted to open our first hotel in the Middle East in Doha, Qatar which is one of the most dynamic cities in the region.
We’re additionally set to open two more hotel properties in Dubai in 2017 and 2018 and a number of restaurants.
I know that Mondrian Doha will be an incredible destination for international and local travellers alike. It will be also a fantastic destination for the locals to experience all our culinary venues.
The hotel will incorporate bespoke Marcel Wanders design features with influences from local patterns, ornate Arabic writing and historic souks.
Standout elements include giant columns with golden eggs, a ‘tree of life’ comprising flowers, falcon video art, giant shisha, patterned carpets, ornate stained glass and intricate mosaic tiling.
Structurally, the building of Mondrian Doha is shaped like a falcon, with many references to the national bird of Qatar also found inside; from paintings and portraits to falcon headpieces and ornaments.
There will also be a stained glass dome skylight on the 27th floor, along with a four-level high spiral staircase which leads guests up to a viewing platform.
The location of the hotel next to Lagoona Mall in the West Bay area also acts as a gateway to the new Lusail City development.
The eight restaurants and bars include a partership with Wolfgang Puck, bringing his concept Cut by Wolfgang Puck to Qatar for the first time.
Japanese Chef Masaharu Morimoto is set to introduce Morimoto Doha - the first eponymous Morimoto outpost to open in the Middle East. Moreover, the hotel will host a Magnolia Bakery located in the lobby, and a number of other concepts including a Qatari restaurant and a burger restaurant, cigar lounge and shisha terrace.
Mondrian Doha will also offer an ESPA spa, with over 2,000m2 sqm of space. Features include separate areas for men and women, 11 treatment rooms, a 'spa within the spa' and hammam facilities as well as specialised areas for disabled guests.
The property offers a grand and spacious wedding and multi-purpose ballroom with over 2,000m2, that can hold up to 1,500 guests.
The ballroom has ornate plaster ceiling domes with crystal chandeliers, as well as a hidden VIP Bridal suite with 15 metre high columns, and a grand staircase entrance.
Mondrian Doha also has a standalone meeting floor with meeting and conference facilities.
Mondrian Doha has confirmed that it will have additional hotel facilities including an entertainment floor complete with a nightclub, an indoor pool and skybar, plus a flower and retail store.
Wednesday, 21 June 2017
QATAR: 12,000 Camels And Sheep New Victims Of Gulf Diplomatic Crisis.
Around 12,000 camels and sheep have become the latest victims of the Gulf diplomatic crisis, being forced to trek back to Qatar from Saudi Arabia, a newspaper reported Tuesday.
Qatar has so far provided temporary shelter, as well as water and fodder, to 7,000 camels and 5,000 sheep returning from the kingdom, Qatari newspaper The Peninsula said.
On June 5, Saudi Arabia and its allies cut all diplomatic ties with Qatar and gave its citizens a two-week deadline to leave the kingdom.
This has forced Qatari farmers with livestock in Saudi Arabia to move their animals back to the emirate, The Peninsula said.
Qatar is home to around 22,000 racing camels, but the animals are also farmed for meat and milk.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have accused Qatar of supporting extremism, charges Doha firmly denies.
Qatar has so far provided temporary shelter, as well as water and fodder, to 7,000 camels and 5,000 sheep returning from the kingdom, Qatari newspaper The Peninsula said.
On June 5, Saudi Arabia and its allies cut all diplomatic ties with Qatar and gave its citizens a two-week deadline to leave the kingdom.
This has forced Qatari farmers with livestock in Saudi Arabia to move their animals back to the emirate, The Peninsula said.
Qatar is home to around 22,000 racing camels, but the animals are also farmed for meat and milk.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have accused Qatar of supporting extremism, charges Doha firmly denies.
Tuesday, 20 June 2017
QATAR: Emirates And Etihad Gain From Gulf Airspace Shut On Qatar
Besieged by a lack of airspace after being shut out of neighbouring Gulf countries last week, Qatar Airways is having to take unsustainably long routes to continue on long-haul network commitments.
Flight radar graphics show its B777s enroute to Sao Paolo stopping in Athens because they can’t carry enough fuel to fly nearly 17 hours in a single trip; the airline now needs to bear Northwest, deep into Iran before crossing into Europe.
Challenging for the Doha-based airline will be the loss of nearly 52 Gulf flights every week, accounting for 30 percent of its revenue.
The airline derives 18 percent of its capacity from feeder markets in the UAE, Bahrain and Saudi Arabia, before ferrying them to long-haul destinations throughout its network.
For an industry that celebrates when it manages a profit margin of 7 percent over costs, the weekly loss of contribution puts it at a big disadvantage compared to Emirates’ and Etihad’s gain as they look to recoup traffic from home markets looking for shorter long-haul flights which Qatar was expanding aggressively on.
Until March, Qatar Airways’ traffic to the US was growing at 45.6% compared to Emirates’ 15.4% and Etihad’s 6.6%.
The laptop ban derailed that growth.
Emirates–which reported an 84% loss in revenue this year–has yet to find routes for the 13 airlines it has pulled from US routes.
If we do not find homes for them, we’ll put them on the ground,CEO Clark had earlier said.
Etihad, beleaguered after souring investments in struggling European carriers, will also be grateful about retaining its crucial top-tier service advantage which Qatar Airways was bent on under cutting.
Among the airline’s more promising investments was its stake in Indian Airline Jet Airways–an airline that had been growing increasingly mortified at the prospect of Qatar Airways’ impending investment in the country following India’s relaxation of foreign direct investment airline rules.
Flight radar graphics show its B777s enroute to Sao Paolo stopping in Athens because they can’t carry enough fuel to fly nearly 17 hours in a single trip; the airline now needs to bear Northwest, deep into Iran before crossing into Europe.
Challenging for the Doha-based airline will be the loss of nearly 52 Gulf flights every week, accounting for 30 percent of its revenue.
The airline derives 18 percent of its capacity from feeder markets in the UAE, Bahrain and Saudi Arabia, before ferrying them to long-haul destinations throughout its network.
For an industry that celebrates when it manages a profit margin of 7 percent over costs, the weekly loss of contribution puts it at a big disadvantage compared to Emirates’ and Etihad’s gain as they look to recoup traffic from home markets looking for shorter long-haul flights which Qatar was expanding aggressively on.
Until March, Qatar Airways’ traffic to the US was growing at 45.6% compared to Emirates’ 15.4% and Etihad’s 6.6%.
The laptop ban derailed that growth.
Emirates–which reported an 84% loss in revenue this year–has yet to find routes for the 13 airlines it has pulled from US routes.
If we do not find homes for them, we’ll put them on the ground,CEO Clark had earlier said.
Etihad, beleaguered after souring investments in struggling European carriers, will also be grateful about retaining its crucial top-tier service advantage which Qatar Airways was bent on under cutting.
Among the airline’s more promising investments was its stake in Indian Airline Jet Airways–an airline that had been growing increasingly mortified at the prospect of Qatar Airways’ impending investment in the country following India’s relaxation of foreign direct investment airline rules.
Thursday, 8 June 2017
QATAR: India Advisory To Indians In Doha
The Indian Embassy in Qatar has issued an advisory assuring the Indian citizens in the peninsula.
The advisory states: The Embassy of India is monitoring the situation closely and is in touch with the Qatari authorities to ensure the safety and security of Indian nationals in Qatar.
It stressed that there was nothing for Indian citizens in Qatar to worry about.
EMBASSY OF INDIA
DOHA
***
ADVISORY FOR INDIAN NATIONALS IN QATAR
On 5th June 2017, Saudi Arabia, UAE, Bahrain and Egypt announced that they were cutting diplomatic relations with the State of Qatar, along with closure of air/sea/land travel links with the State of Qatar.
These countries also have ordered their citizens to leave Qatar, in addition to ordering Qatari citizens to leave their territories. Subsequently Maldives, Yemen, Mauritius, Mauritania and Jordan took similar steps.
Air connectivity provided by several airlines between these countries has been disrupted, as a result of cancellation of a number of flights.
The airlines concerned have reportedly offered refunds for tickets booked on these cancelled flights. Indian travelers are, therefore, requested to contact their travel providers for advice on modifications to their travel arrangements and also remain alert to further developments.
The Embassy of India is monitoring the situation closely and is in touch with the Qatari authorities to ensure the safety and security of Indian nationals in Qatar.
The Qatari authorities have conveyed that they will take all necessary steps to ensure that normal life, including supplies of food items, is not affected.
There is nothing happening in the region that suggests any threat to the physical safety and security of residents in Qatar.
Please update yourself of the latest news and do not believe in rumours without cross-checking facts. The Embassy will be providing updates on its Twitter handle [@IndEmbDoha] from time to time as required.
The Embassy of India, Doha, located at Villa Nos. 86 & 90, Street No. 941, Al Eithra Steet, Zone-63, Onaiza, Doha, can be reached through any of the following:
Email: labour.doha@mea.gov.in
Tel. No. during Office hours: 44255777
Tel. No. after Office hours: 55575086
Indian Cultural Centre (ICC): 50536234
Indian Community Benevolent Forum (ICBF): 55512810, 55532367, 55342708
The advisory states: The Embassy of India is monitoring the situation closely and is in touch with the Qatari authorities to ensure the safety and security of Indian nationals in Qatar.
It stressed that there was nothing for Indian citizens in Qatar to worry about.
EMBASSY OF INDIA
DOHA
***
ADVISORY FOR INDIAN NATIONALS IN QATAR
On 5th June 2017, Saudi Arabia, UAE, Bahrain and Egypt announced that they were cutting diplomatic relations with the State of Qatar, along with closure of air/sea/land travel links with the State of Qatar.
These countries also have ordered their citizens to leave Qatar, in addition to ordering Qatari citizens to leave their territories. Subsequently Maldives, Yemen, Mauritius, Mauritania and Jordan took similar steps.
Air connectivity provided by several airlines between these countries has been disrupted, as a result of cancellation of a number of flights.
The airlines concerned have reportedly offered refunds for tickets booked on these cancelled flights. Indian travelers are, therefore, requested to contact their travel providers for advice on modifications to their travel arrangements and also remain alert to further developments.
The Embassy of India is monitoring the situation closely and is in touch with the Qatari authorities to ensure the safety and security of Indian nationals in Qatar.
The Qatari authorities have conveyed that they will take all necessary steps to ensure that normal life, including supplies of food items, is not affected.
There is nothing happening in the region that suggests any threat to the physical safety and security of residents in Qatar.
Please update yourself of the latest news and do not believe in rumours without cross-checking facts. The Embassy will be providing updates on its Twitter handle [@IndEmbDoha] from time to time as required.
The Embassy of India, Doha, located at Villa Nos. 86 & 90, Street No. 941, Al Eithra Steet, Zone-63, Onaiza, Doha, can be reached through any of the following:
Email: labour.doha@mea.gov.in
Tel. No. during Office hours: 44255777
Tel. No. after Office hours: 55575086
Indian Cultural Centre (ICC): 50536234
Indian Community Benevolent Forum (ICBF): 55512810, 55532367, 55342708
Wednesday, 7 June 2017
QATAR: Qatar Versus Gulf Diplomatic Rift Will Hurt Aviation In Middle East
A diplomatic rift between Qatar and its Gulf neighbors may cost them billions of dollars by slowing trade and investment and making it more expensive for the region to borrow money as it grapples with low oil prices.
With an estimated $335 billion of assets in its sovereign wealth fund, Qatar looks able to avoid an economic crisis over the decision Monday by Saudi Arabia, Egypt, the United Arab Emirates and Bahrain to cut air, sea and land transport links.
The tiny state’s newly expanded port facilities mean it can continue liquefied natural gas exports that earned it a trade surplus of $2.7 billion in April, and import by sea goods that used to come over its land border with Saudi Arabia, now closed.
But parts of Qatar’s economy could suffer badly if the dispute, over Riyadh’s allegations that Doha has been supporting terrorism, drags on for months – a prospect that helped to push the Qatari stock market down more than 7 percent Monday.
Fast-growing Qatar Airways, at the center of the tiny state’s effort to become a tourism hub, is likely to face losses from being barred some of the Middle East’s biggest hubs.
Qatar’s government has been borrowing at home and abroad to help finance some $200 billion of infrastructure spending as it prepares to host the World Cup soccer tournament in 2022. A drop in Qatari bond prices Monday suggested that borrowing would become more expensive – possibly slowing some projects.
Bonds of other countries in the six-nation Gulf Cooperation Council barely moved Monday, but some foreign bankers said the whole region could end up paying more to borrow if diplomatic tensions persisted.
If this dispute goes on for a while, the ramifications could be huge, said an international banker based in the Gulf, declining to be named because of political sensitivities.
Asset managers will not differentiate between Qatar and the rest of the GCC, and international managers will take their hands off any credit from the GCC. If Qatar is seen as a terror-financing or compliance issue, then asset managers will be cautious.
Because they all rely heavily on oil and gas exports, the GCC states have only weak trade and investment ties with each other, which will limit the economic fallout of their dispute. The UAE is Qatar’s biggest trading partner from the GCC but only its fifth-largest globally.
Similarly, Saudi Arabia and other GCC countries traditionally account for only about 5 to 10 percent of trading on the Qatari stock market, according to exchange data, suggesting even a total pullout would not sink the market.
Nevertheless, Qatar will face higher costs in some areas. Saudi Arabia and the UAE provided $309 million of Qatar’s $1.05 billion of food imports in 2015. Much of them, especially dairy products, came over the Saudi land border; Doha will have to make other arrangements for them.
Construction costs in Qatar could also rise, fueling inflation across the economy, because aluminum and other building materials can no longer be imported by land.
Saudi Arabia, the United Arab Emirates and Bahrain withdrew their ambassadors from Qatar for eight months in 2014 over Doha’s alleged support of Islamist groups, but that had minimal market or economic impact because it did not involve a ban on transport links. Trade and investment went on much as before.
This time, Saudi Arabia has promised to begin legal procedures for immediate understandings with brotherly and friendly countries and international companies to apply the same procedures as soon as possible.
It is not clear that Riyadh will be able to persuade more countries to cut links with Doha.
But it could try to force foreign companies to make a choice between doing business with Qatar and obtaining access to its own, much larger market, which it is opening up as part of economic reforms.
Cairo-based bankers said Monday that some Egyptian banks had halted dealings with Qatari banks.
It was not clear whether GCC banks would do the same; UAE commercial bankers said they were waiting for guidance from their central bank.
Stock markets in Dubai and several other Gulf centers fell Monday – although not by nearly as much as Qatar – in a sign that investors around the region were worried.
Overall it’s not good. I don’t think that the region has been in such turmoil so close to home.
And I think everyone is speculating how far these steps will go forward, said Mohammed Ali Yasin, chief executive of Abu Dhabi’s NBAD Securities.
Everyone is hoping that there will be intervention by wise people and things will cool down. But what we have seen is a gradual escalation.
With an estimated $335 billion of assets in its sovereign wealth fund, Qatar looks able to avoid an economic crisis over the decision Monday by Saudi Arabia, Egypt, the United Arab Emirates and Bahrain to cut air, sea and land transport links.
The tiny state’s newly expanded port facilities mean it can continue liquefied natural gas exports that earned it a trade surplus of $2.7 billion in April, and import by sea goods that used to come over its land border with Saudi Arabia, now closed.
But parts of Qatar’s economy could suffer badly if the dispute, over Riyadh’s allegations that Doha has been supporting terrorism, drags on for months – a prospect that helped to push the Qatari stock market down more than 7 percent Monday.
Fast-growing Qatar Airways, at the center of the tiny state’s effort to become a tourism hub, is likely to face losses from being barred some of the Middle East’s biggest hubs.
Qatar’s government has been borrowing at home and abroad to help finance some $200 billion of infrastructure spending as it prepares to host the World Cup soccer tournament in 2022. A drop in Qatari bond prices Monday suggested that borrowing would become more expensive – possibly slowing some projects.
Bonds of other countries in the six-nation Gulf Cooperation Council barely moved Monday, but some foreign bankers said the whole region could end up paying more to borrow if diplomatic tensions persisted.
If this dispute goes on for a while, the ramifications could be huge, said an international banker based in the Gulf, declining to be named because of political sensitivities.
Asset managers will not differentiate between Qatar and the rest of the GCC, and international managers will take their hands off any credit from the GCC. If Qatar is seen as a terror-financing or compliance issue, then asset managers will be cautious.
Because they all rely heavily on oil and gas exports, the GCC states have only weak trade and investment ties with each other, which will limit the economic fallout of their dispute. The UAE is Qatar’s biggest trading partner from the GCC but only its fifth-largest globally.
Similarly, Saudi Arabia and other GCC countries traditionally account for only about 5 to 10 percent of trading on the Qatari stock market, according to exchange data, suggesting even a total pullout would not sink the market.
Nevertheless, Qatar will face higher costs in some areas. Saudi Arabia and the UAE provided $309 million of Qatar’s $1.05 billion of food imports in 2015. Much of them, especially dairy products, came over the Saudi land border; Doha will have to make other arrangements for them.
Construction costs in Qatar could also rise, fueling inflation across the economy, because aluminum and other building materials can no longer be imported by land.
Saudi Arabia, the United Arab Emirates and Bahrain withdrew their ambassadors from Qatar for eight months in 2014 over Doha’s alleged support of Islamist groups, but that had minimal market or economic impact because it did not involve a ban on transport links. Trade and investment went on much as before.
This time, Saudi Arabia has promised to begin legal procedures for immediate understandings with brotherly and friendly countries and international companies to apply the same procedures as soon as possible.
It is not clear that Riyadh will be able to persuade more countries to cut links with Doha.
But it could try to force foreign companies to make a choice between doing business with Qatar and obtaining access to its own, much larger market, which it is opening up as part of economic reforms.
Cairo-based bankers said Monday that some Egyptian banks had halted dealings with Qatari banks.
It was not clear whether GCC banks would do the same; UAE commercial bankers said they were waiting for guidance from their central bank.
Stock markets in Dubai and several other Gulf centers fell Monday – although not by nearly as much as Qatar – in a sign that investors around the region were worried.
Overall it’s not good. I don’t think that the region has been in such turmoil so close to home.
And I think everyone is speculating how far these steps will go forward, said Mohammed Ali Yasin, chief executive of Abu Dhabi’s NBAD Securities.
Everyone is hoping that there will be intervention by wise people and things will cool down. But what we have seen is a gradual escalation.
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