Doha’s Diplomatic Dispute – The Financial Impact

The economic impact of Saudi and UAE-led sanctions on Qatar has so far been limited. But should the dispute draw on, or intensify, the economic fallout could be sizeable for both Doha and the region more broadly.

In the space of little over a fortnight, the small but affluent state of Qatar has been thrust into the epicenter of what has quickly become a major crisis on the world stage.

On 5 June, Saudi Arabia, the UAE, Bahrain, Egypt and a few other allied countries imposed both diplomatic and economic sanctions on Qatar, accusing it of supporting terrorism through its ties to Iran and the Muslim Brotherhood.

The measures imposed include a blockade of land, sea, and air access and the expulsion of Qatari officials, residents, and visitors from the group of countries.

More specifically, this means that the Saudi-Qatar land border has been closed, Qatar Airways has been banned from these countries’ airspace while they have also suspended their domestic airlines’ flights to Doha, and Qatari vessels have been banned from their ports. (CONTINUED - 2330 WORDS)