Qatar has used $38bn (£29bn) to support its economy during a dispute with other Arab states, a rating agency says. Qatar’s neighbours say they cut it off over its alleged support for terrorism.
The Qatari government stressed that it had sufficient resources to defend its economy during the crisis, but foreign investors took flight with no progress being made towards a resolution.
The emirate’s banks have also faced higher funding costs, as some Gulf lenders opted not to roll over their deposits. “The severity of the diplomatic dispute between Gulf countries is unprecedented, which magnifies the uncertainty over the ultimate economic, fiscal and social impact on the GCC [Gulf Co-operation Council] as a whole,” said Moody’s Vice-President Steffen Dyck.
Source Credit: BBC
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