388 Saudi companies withdraw from Qatar following Gulf rift

CAIRO – 22 July 2017: Saudi media reports revealed that 388 Saudi companies operating in Qatar have quit from the peninsular country and ended their economic activities there.

According to media reports, the Qatari economy is witnessing a significant decline due to the measures adopted by neighboring Arab countries against Doha for its support of terrorism groups threatening the security of the region.

Qatar’s relations with several Arab states have been strained since May 24 over a leaked statement attributed to Qatari Emir Sheikh Tamim bin Hamad Al Thani criticizing Gulf foreign policy with Iran, describing it as “unwise”.

Qatari Emir Tamim bin Hamad’s recent remarks, in which he attacked Egypt, Bahrain and the United Arab Emirates (UAE), prompted the major Arab powers to adopt urgent and strict measures towards Doha.

The Qatari crisis was escalated when Egypt, Saudi Arabia, Bahrain, and the UAE, along with Yemen and Libya, announced a coordinated diplomatic break with Qatar. They also closed their airspace and seaports to Qatari transportation.

Some banks operating in Saudi Arabia, Bahrain, and the UAE have withdrawn their deposits from Qatari banks and have stopped trading on bonds and in Qatari riyal amid fears of increased pressure from Gulf states, according to Bloomberg.
Economic experts believe that the economic pressure will affect Qatari banks, noting that most Qatari banks rely heavily on foreign financing.