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: 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.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.


Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.