Qatar’s economy downgraded amid diplomatic crisis

Lately, energy-rich Qatar has been accused of supporting terrorism and having too close ties with Iran. The ongoing diplomatic crisis between Qatar on one side and Saudi Arabia, the EAU, Bahrain and Egypt on the other one has led the ratings agency Moody’s to downgrade its outlook on Qatar’s economy to negative.

According to Moody’s, “the likelihood of a prolonged period of uncertainty extending into 2018 has increased and a quick resolution of the dispute is unlikely over the next few months.” Exports of natural gas which is the core of Qatar’s economic and diplomatic clout and the country’s sovereign credit fundamentals could be negatively affected in the medium term.

Qatar is said to have sent a response to the demands formulated by the four countries whose next step has yet to be known. While an economic blockade is ongoing, Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani told that “Qatar continues to call for dialogue” and stressed that “any threat to region is threat to Qatar.”

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