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The Diplomatic Standoff: Assessing the Economic Cost to Qatar

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Executive Summary

What is this report about?
On June 05, 2017, Saudi Arabia, Egypt, the United Arab Emirates (UAE) and Bahrain severed ties with Qatar, accusing the Qatari government of promoting instability in the region. The four Arab countries closed air and sea transport connections with Qatar, and also the three GCC countries—KSA, UAE and Bahrain—have blocked their nationals from travelling to Qatar. Given the close trade and deep geographical links with the rest of the GCC, the severance of diplomatic relationship would have economic repercussions for Qatar. In this report, we have analyzed the impact of diplomatic crisis on Qatar's economy.

Who will benefit and why?
The report will benefit anyone tracking the impact of diplomatic crisis on Qatar's economy; especially banks, government agencies, investment bankers, economists, retail and institutional investors. This report would help these entities to gain in-depth understanding of the level of economic exposure Qatar has through channels such as trade, investments, and equity and debt markets.

How exhaustive is this report?
In this report, we assess the economic cost for Qatar due to the severance of diplomatic relationship from the following viewpoints:

  • The broader economy
  • Trade (exports and imports)
  • Investments (FDI's)
  • Currency
  • Stock Market &
  • Bond Markets (including credit rating and CDS spreads)

FAQ

Is regular update for this available?
The report is thematic and there is no regular update. However, if required, upon specific request we could provide you with an update.

Can I only download certain sections of the report?
No. The report can be downloaded in full length only.

Key Questions Addressed

  • What is the impact of the diplomatic crisis on Qatar's trade?
  • What are the implications for the LNG export and LNG transportation cost?
  • What is the quantum of FDI that would take a hit?
  • What is the impact of the ongoing crisis on Qatari Riyal?
  • How have the credit rating agencies and investors responded to the crisis?
  • What are the implications for Qatar's external borrowing and impact on equity and debt markets?
  • Which are the major sectors that are likely to be impacted due to the ongoing crisis?

Table of Contents

  • Executive Summary
  • The Broader Economy
  • Trade Exposure
  • Foreign Direct Investment
  • Credit Rating and Investor Sentiment
  • Conclusion

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