FACTBOX: Business impact of Qatar-Gulf rift

Image
Reuters
Last Updated : Jun 05 2017 | 7:15 PM IST

REUTERS - Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar on Monday, accusing it of supporting terrorism, in an unprecedented breach between the most powerful members of the Gulf Cooperation Council.

Here are some business deals that have either been affected by the rift or could be affected. (For an analysis of the economic impact, double click)

* Saudi Arabia, the United Arab Emirates and Bahrain said they were cutting air, sea and land transport links with Qatar, while Egypt said it was closing its air space and sea ports to all Qatari transport. Hundreds of weekly flights by airlines including Qatar Airways, Emirates and Saudia were cancelled.

* Some Egyptian banks halted dealings with Qatari banks, banking sources said. Bankers in Saudi Arabia and the UAE said the situation was normal and they had received no guidance from their central banks on ties.

* Qatar National Bank has been planning to apply for an investment banking licence for its Saudi unit. QNB recently opened a bank branch in Riyadh. A source familiar with the matter said it was business as usual at the bank's branches in Saudi Arabia and Egypt.

* Al-Ahli Saudi football club has suspended a contract with Qatar Airways at the direction of the Saudi government.* Qatari shipping group Milaha is among potential buyers of United Arab Chemical Carriers (UACC), which is 45 percent owned by United Arab Shipping Co (UASC). Qatar holds a 51 percent stake in UASC and Saudi Arabia, 35 percent.

* At least three international bond issues from Qatar are in the pipeline:

Commercial Bank of Qatar has been in talks with banks about a potential international bond.

Islamic lender Masraf Al Rayan has mandated banks ahead of a planned U.S. dollar sukuk issue of at least $500 million. The plan was put on hold because of three-bank merger discussions between Masraf Al Rayan, Barwa Bank and International Bank of Qatar.

Qatar International Islamic Bank has appointed banks ahead of a potential dollar sukuk issue.

(Reporting by Dubai Newsroom; Editing by Andrew Torchia)

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jun 05 2017 | 7:05 PM IST

Next Story