Focus On Gulf Special Report World

GCC Boycott Has Had An Impact On The Banking Sector In Qatar

It’s been more than four months GCC countries such as Saudi Arabia, Bahrain and UAE has imposed transportational, economical and diplomatic sanctions on Qatar such as backing out diplomatic relations, shutting  land, sea and air ties, asking their people to leave Qatar and expelling Qatari nationals from GCC. Due to this disputed situation, Qatar’s Overall gradual economic slowdown is expected. International  rating agency Moody’s Investors Service is expecting Qatar’s GDP growth to slow to 2.4 % in 2017  which was high and stable around 13.3% from 2006-2014.

As the dispute  enters the  third month of sanctions imposed by GCC. Financial System of Qatar is showing signs of instability and is further deteriorating by each passing day as the crisis are yet unresolved. Future of Qatar’s Banking system looks bleak and gloomy, according to International rating agencies, and analysts.

As the Moody’s Investors Service has rated Qatar’s Banking system as negative ( which was rated stable from 2006) has completely changed the prospect of Qatar’s Banking system. Which now looks grim due to external funding pressure (heavy dependency on foreign funding and/or MENA investments) and deteriorating operating environment and conditions.



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