As blockade on Qatar continues, losses mount for Saudi, UAE companies
The blockade of Qatar by GCC countries like Saudi Arabia, Bahrain and the UAE is continuing, but businesses in those countries have also started to feel the pinch.
A majority of food products in Qatar used to come from Saudi Arabia and the UAE, but there has been a surging demand for local produce and it is expected to continue after the blockade is over.
The opening up of new supply fronts meant Qatar never faced any real shortage of food, but companies in those two countries have been suffering a lot due to the ban on food exports.
HE the Minister of Finance Ali Sherif Al Emadi’s observation that “If we’re going to lose a Dollar, they’ll lose a Dollar also” is certainly coming true.
It has been reported that daily losses of a considerable number of Saudi Arabian and UAE companies continued to escalate due to the unfair blockade imposed on Qatar by their governments.
Some economists and business experts affirmed that the Qatari economy is gaining more strength against the blockade, while many companies in Saudi Arabia and the UAE are under the risk of closure, reported Gulf Times.
“These companies are suffering great losses due to the blockade imposed on Qatar, which put them in a significantly critical situation resulting from the unstudied decision taken by their government,” the report said.
According to experts, losses of Saudi companies are much more than ones in the UAE. There are 315 Saudi companies working in Qatar with 100% Saudi capital while another 303 are operating here with local Qatari partners.
The Saudi companies’ capital in Qatar is estimated to be QR1.23bn. They are also taking part in a good number of strategic infrastructure projects in the country, in addition to important projects for the preparation of FIFA 2022 World Cup. Again, the blockade is considered a serious threat to stop the operations and business of such companies due to the political stands of their country of origin.
Similarly, there are many UAE companies working in Qatar and they are under the threat to close down their business, only because of their government's stand. Their contracts are worth millions of dollars. The UAE banks could also face the risk of losing substantial deposits and loans.