Qatar weathers ‘blockade shock’ with ease - The Peninsula Qatar

Qatar weathers ‘blockade shock’ with ease - The Peninsula Qatar:

"Qatar has been able to ride out the ‘blockade impact’ on its economy better than expected, Arqaam Capital Research noted in its ‘Mena Banks Outlook.’ In its latest research note, Arqaam Capital said it has added QNB to its core portfolio. It had already upgraded QNB stock to a Buy from Hold following the bank’s strong Q3 17 performance.
Qatar’s latest GDP data shows 3.6 percent year-on-year expansion, while latest trade data also shows resilience, with imports in particular now higher than pre-blockade levels having risen by 11.5 percent year-on-year in October, after dipping over 30 percent in June and July.
The 2018 Qatar budget should provide further support as it pencils in 16 percent higher spending, while Arqaam calculates a 3.7 percent fiscal surplus at $65/barrel (bl) oil price.  According to Arqaam, the Barzan gas facility is likely to further raise the oil and gas sector’s output by 11bn standard cubic feet/day.
Qatari Riyal is stabilising after it moved away from the peg towards the latter part of the year. Foreign outflows have already slowed down significantly, with continued deposit outflows from foreign sources offset by higher borrowing from foreign banks and cheaper funding from the PSE sector."



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