Gulf’s tiny state will suffer from economic and financial problems

Two economic experts said that severing of relations with Qatar will have a negative impact on all financial, banking and commercial agreements in Qatar, stressing that the effects are comprehensive and not limited to a specific aspect. They added that suspension of the Qatari riyal will be effective and the financial system will be in isolation with the major countries in its geographical environment.

They added that the Qatari financial market lost over 198 million riyals during one session of trading, saying that such a huge loss provides a clear evidence that Saudi and investors from other Gulf States withdrew their money from the Qatari market.

They added that Gulf banks are linked by strong financial ties to help them to provide their financial services smoothly and support their economies and face sudden crises and supported by the central banks, which also rely on a financial base to ensure financial stability and face sudden crises.

They said the closing of Qatar’s land border with Saudi Arabia and ending of air and maritime commerce could hit economic growth. “The construction sector is a key driver of the Qatari economy and is partially dependent on overland routes for supplies,” they said.

“If sanctions are not resolved in short order, World Cup construction could be impacted, and plans for fans to base themselves in neighboring countries might also be affected. They said the regional economies are likely to shrug off the dispute. “Trade ties between Qatar and the rest of the region are relatively small. Qatar’s exports to the region are limited, with most of the country’s oil and gas exports going to Asia. Qatar’s imports from the rest of the region are also trivial,” he said.

He added that “There might be decreases or increases in Qatar's economic indicators but interruption of diplomatic relations with Saudi Arabia does not mean that Qatar will not survive.”  He added that the most important thing for Turkey is; there will be trouble in Turkey's goods sent to Qatar. Moreover, Qatar's money is flown through European banks.

"Since Iraq is an insecure region, there is a problem for Turkish trucks' route. If the trouble remains for long, Turkey's dependence to Iran will increase," he said. He added that Turkey cannot be "neutral", but can play its role as a "mediator".