The resolution of Gulf conflict could help Qatar to grow its economy
Standard Chartered said that Qatar’s economy would develop 3% as the reduction of a three-year-old regional conflict would help trade, tourism, and logistics, changing its previous 2.1% growth estimate.
On Tuesday, Saudi Arabia and its Arab allies decided to end the Gulf conflict that began in mid-2017 about claims that Qatar supports terrorism, while it denied these charges.
Standard Chartered stated in a note on Wednesday: We see the lifting of restrictions on trade and travel on Qatar as adding impetus to the ongoing recovery in trade, tourism, and logistics.
It added that the United Arab Emirates lifting restrictions on trade and travel to Qatar could also help the UAE’s trade recovery, and possibly leading to less trade and transit volume via Oman’s port and airport after Oman benefited from the re-routing of some trade during the embargo.
It also stated that another advantage could be a convergence in Qatar’s onshore and offshore spot currency rates, while foreign liquidity stands to benefit from the lifting of the embargo. Otherwise, the bank’s revised growth prediction is higher than the 2.2% forecast Qatar gave last month in its 2021 budget.
Standard Chartered said: Regionally, the boost to consumer and investor sentiment and lower perceived geopolitical risk may contribute positively to economic outcomes, particularly ahead of significant events such as EXPO 2020, set to be hosted by Dubai in October 2021, and the 2022 FIFA World Cup in Doha.
