Diplomatic Damage to Qatar’s economy mounts as insurer closes UAE branch

In the initial weeks after the United Arab Emirates, Saudi Arabia, Bahrain and Egypt cut diplomatic and transport ties with Doha on June 5, accusing it of backing terrorism, many long-term investors sat tight, hoping the dispute would be resolved soon and allow normal business to resume.

Now, however, there are indications that the damage to business ties may last for many years, as Qatari firms begin to close operations and sell assets – steps that will be hard to reverse even if the diplomatic crisis ends.

Because of Qatar’s vast wealth – it is the world’s largest natural gas exporter – it is able to cope with the isolation. But it will have to pay higher costs, many of them borne by the government, to do business with the rest of the world, said another analyst monitoring the region.

Source Credit: The New York Times
Read full story: http://nyti.ms/2jDEm7T

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