Qatar economy weathers Saudi-led blockade

AFP, DUBAI: Qatar’s economy has weathered the impact of a months-long blockade by neighbouring countries, although its tourism and real estate sectors have taken a hit, an economic report said on Wednesday. The tiny Gulf state’s economy has maintained positive growth in the seven months since Saudi Arabia, United Arab Emirates, Bahrain and Egypt imposed an air and land siege, said the report by Capital Economics.

“Recently-released national accounts data confirmed that Qatar avoided the worst fears that the diplomatic crisis would plunge its economy into recession,” the independent London-based research firm said. The economy of the gas-rich state grew by 1.9 per cent in the third quarter of last year, up from 0.3 per cent in the previous quarter, it said.

Growth of the non-hydrocarbon sector, which is more vulnerable to the blockade, remained unchanged at 3.2 per cent in the third quarter.

The foreign liabilities of Qatari banks rose in November for the first time in six months, a sign that domestic banks have secured additional financing from foreign banks, it said.

But it added that the tourism sector has been hit hard, with visitor arrivals down 20 per cent in November compared to the previous year. Flights into Qatar were down 25 per cent and flights by Qatar Airways were cut 20 per cent in the same period.

Qatar economy weathers Saudi-led blockade

AFP, DUBAI: Qatars economy has weathered the impact of a months-long blockade by neighbouring countries, although its tourism and real estate sectors have taken a hit, an economic report said on Wednesday. The tiny Gulf states economy has maintained positive growth in the seven months since Saudi Arabia, United Arab Emirates, Bahrain and Egypt imposed an air and land siege, said the report by Capital Economics. Recently-released national accounts data confirmed that Qatar avoided the worst fears that the diplomatic crisis would plunge its economy into recession, the independent London-based research firm said. The economy of the gas-rich state grew by 1.9 per cent in the third quarter of last year, up from 0.3 per cent in the previous quarter, it said. Growth of the non-hydrocarbon sector, which is more vulnerable to the blockade, remained unchanged at 3.2 per cent in the third quarter. The foreign liabilities of Qatari banks rose in November for the first time in six months, a sign that domestic banks have secured additional financing from foreign banks, it said. But it added that the tourism sector has been hit hard, with visitor arrivals down 20 per cent in November compared to the previous year. Flights into Qatar were down 25 per cent and flights by Qatar Airways were cut 20 per cent in the same period.