The Qatari Stock Index plunged to 7.6 per cent in the first hour of trade reflecting panic by investors.
With its neighbours’ decision to close land, sea and airport routes to Qatar, the Gulf nation would soon be facing an economic embargo impacting sectors like trade, food, exports and imports, airline business, stock markets, and in the longer run sport as the nation wants to host the 2022 Football World Cup.
With all airlines suspending operations to Doha, following closure of borders and air space to the country, the country’s airlines will have to seek alternative routes.
“The situation of Qatar is really disastrous. We are seeing an economic tsunami, as 70-80 per cent of the trading transactions come from the UAE and the Saudi Arabia. Closing borders and banning trade will end up in food shortage as the only way to provide supplies to Qatar is through Saudi Arabia. In a month, food stock will run out in supermarkets. Even for basic thing like yoghurt the country has to depend on the Saudi Arabia,” Amjad Taha, Regional head of British Middle East Center For Studies and Research told DT News.
“Now if we look it from a larger perspective, there is a huge construction happening in Qatar at the moment for the 2022 World Cup, the raw materials to complete the construction were all supplied by the neighbouring countries that leave Qatar to look for alternatives, causing a whole new stir and raising question as to whether the stadium would be completed in time. Also, Qatar already faces human rights issues when it comes to labours.
Further, we are now also staring at the loss of major workforce. With the travel ban Qatar is at a greater loss as most tourism to Qatar from the rest of the GCC countries is suspended and threatening various sectors in the economy with the stock market plunging to less than 7 per cent today.”
“Qatar is supporting the opposition and protests not only in Bahrain but also in nations like London, Germany and others. A lot of people will ask why Qatar would do that. If Qatar was trying to be the regional head of the GCC countries and challenge the position of strong nations like Saudi Arabia, it will create chaos in the rest of the GCC,” he said.