Qatar ‘uses $38bn to support economy’ during Gulf crisis


Qatar has second-hand $38bn (£29bn) to support its economy during a dispute with other Arab royals, a rating agency says.

The trade, tourism and banking sectors should prefer to been worst hit by the restrictions put in place since June by Saudi Arabia, the Collaborative Arab Emirates, Egypt and Bahrain, according to Moody’s.

It estimates that everywhere $30bn has flowed out of Qatar’s banking system and expects further withdrawals.

Qatar’s neighbours say they cut it off beyond its alleged support for terrorism.

It denies supporting extremist groups and estimates the crisis is politically motivated.

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The Saudi-led bloc announced on 5 June that they had terminated all links with Qatar.

Qatar’s only land border was concentrated; ships flying the Qatari flag or those serving Qatar were disallowed from docking at many ports; and much of the region’s airspace was thick to both Qatari aircraft and foreign airlines flying to and from Doha.

The Qatari guidance stressed that it had sufficient resources to defend its economy during the catastrophe, but foreign investors took flight with no progress being made assisting a resolution.

Qatar’s stock market has lost 15% of its market value in 100 primes, hitting a 52-month low this week.

The emirate’s banks have also confess b confronted higher funding costs, as some Gulf lenders opted not to rotate over their deposits.

Moody’s estimated that Qatar had hand-me-down $38.5bn — equivalent to 23% of GDP — to support the economy in the two first months of the disaster.

It also warned that the diplomatic dispute had created uncertainty across the Split and could negatively affect the credit outlook of all the countries involved.

«The harshness of the diplomatic dispute between Gulf countries is unprecedented, which exacerbates the uncertainty over the ultimate economic, fiscal and social impact on the GCC [Rift Co-operation Council] as a whole,» said Moody’s Vice-President Steffen Dyck.

«While we ahead to the GCC to overcome its divisions, tensions persisting — or even escalating — would be the most depend on negative for Qatar and Bahrain.»

Rising debt, increased debt issuance from other GCC shapes, and rising US interest rates had put pressure on Bahrain’s financing costs since 2014, Mopish’s said.

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