Wednesday 6 January 2021

#Qatar's biggest bank expects Gulf detente to boost companies, lenders | Reuters

Qatar's biggest bank expects Gulf detente to boost companies, lenders | Reuters

Qatari companies including banks are forecast to get a boost from a deal to end a more than three-year row between Doha and some Gulf states, which was announced by Crown Prince Mohammed bin Salman on Tuesday.

QNB Financial Services Research, part of Qatar’s biggest bank, said in a note that Qatari banks are set to benefit from the GCC resolution agreed at a Gulf summit on Tuesday “based on general investor optimism as domestic banks had immaterial exposure to the blockading countries”.

The Qatari stock index closed 1.4% higher on Tuesday, leading other Gulf markets and was up 0.1% on Wednesday, although Qatar’s international bonds were little changed by news of the deal, while credit default swaps, used to bet against the risk of a default, were unmoved, IHS Markit data showed.

“Qatar Airways and consequently Qatar Fuel could benefit from increased air traffic between KSA (Kingdom of Saudi Arabia) and Qatar,” QNB said in the research note, adding that real estate firms will also benefit from demand longer term.

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