Middle-east Arab News Opinion | Asharq Al-awsat

If Demands Turned Down, Foreign Firms to Flee Qatar | ASHARQ AL-AWSAT English Archive 2005 -2017
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A view shows the Khalifa International Stadium in Doha, Qatar, May 18, 2017. REUTERS/Ibraheem Al Omari/File Photo

Jeddah- Experts and specialists in the economy field saw that Qatar is likely stepping towards a new phase and a dangerous one in its national economy that has been undergoing a trust issue with foreign investors during the past days.

They expected the losses to directly affect the Qatari economy in case Qatar refused demands of Saudi Arabia, UAE, Bahrain and Egypt.

Economists attributed the potential exit of some foreign firms to the concerns over political conditions in Doha especially after several western countries called on Qatar to stop financing terrorism in addition to the political and economic boycotting of Doha by neighboring countries.

Economist Dr. Saleh Altayyar said that Qatar lost in 2016 QAR27 billion (around USD7.42 billion) of foreign investments that had quit the local market, basically European and American firms for reasons of absence of security and safe infrastructure – these concerns are increasing on a daily basis after it has become clear that Qatar is supporting terrorism in the region.

Further, specialist in banking field Marwan Alsharif said that the Qatari economy has boosted with the surge of foreign investments after announcing that Qatar will host World Cup 2022.

However, during the coming days, many companies will consider a safe quit from the Qatari market in case Doha did not approve demands of boycotting states.

This exit might have a high price and might lead to huge losses including paying off loans and compensating workers of these companies.