Qatar Confident Of Thriving In Tense Economic Conditions
By Antonis Vasloos
Qatar has become the victim of the diplomatic freeze as many Gulf countries have cut down all trading and economic ties with the country. However, Qatar Financial Center is confident of thriving well despite the grim conditions. According to the CEO of Qatar Financial Center, Yousuf Mohamed Al Jaida, the country has faced much worse economic conditions. He is confident that the country will bounce back in due course despite the hurdle imposed by the neighboring countries.
Yousuf Mohamed Al Jaida agreed that the current situation has resulted in geopolitical uncertainty which is bad for the business environment. He said that even though the situation is uncomfortable, business is carried out with usual valor. Investors who have invested in Qatar to do business with that side of the country suffered due to the Qatar economic conditions.
Many Gulf countries such as Saudi Arabia, Bahrain, and others have accused Qatar of supporting terrorism. The diplomatic freeze is a consequence of various other reasons too according to market experts. Al-Jaida said that Qatar faced the worse economic conditions in 2008 and the current situation is not as bad as it was known.
The sovereign credit of Qatar has been downgraded to negative from stable by Moody. This will affect the borrowing costs. However, Raghavan Seetharaman, CEO of Doha Bank has commented that it is not a challenge for Qatar. According to Seetharaman, there is short-term turbulence to the economy. However, it won’t last for the medium or long term.