Qatar to withstand Saudi-led impasse – MUFG

Doha_QatarQatar’s economy is likely to withstand the economic impasse imposed by a Saudi-led alliance of neighbouring states, according to a report from Japanese banking group Mitsubishi UFJ Financial Group (MUFG). While the report suggests that the worst economic impacts have already hit Qatar, it also states that a swift resolution to the stand-off is unlikely. It cites meetings between the alliance, which also features the UAE, Bahrain and Egypt, and opposition figures within the Qatari Al Thani royal family advocating for regime change that are “fuelling tensions in the GCC diplomatic crisis”. However, while the report refers to “a deeply polarised stalemate”, it also cites the news that US President Trump will meet with GCC leaders in March and April as an apparently “significant breakthrough”. “Whilst the situation still remains fluid, the probability of rapprochement has considerably increased with President Trump likely to use his political clout to force the Saudi-led alliance to moderate their demands and Qatar to adjust its decision-making structure,” states MUFG. In terms of the economic impact, the report states that a “new normal” appears to be embedded into markets where risk assets are being repriced at higher levels and the market is adjusting accordingly. In part, this market equilibrium is supporting MUFG’s view that “the brunt of the economic impact [on Qatar] looks likely to have passed”. ©2018 funds global mena

Executive Interviews

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.


MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.


Jun 13, 2018

Our panellists tell us that instead of launching competing national projects, African countries should work together for the sake of a bigger capital market. Chaired by George Mitton in Cape Town.