Resolution of #Qatar dispute will broadly improve GCC business, investment: S&P | ZAWYA MENA Edition

Resolution of Qatar dispute will broadly improve GCC business, investment: S&P | ZAWYA MENA Edition

The restoration of the Gulf Cooperation Council’s relationship with Qatar will improve cooperation but the damage done by the rift is likely to remain, says S & P.

Following the resolution of the dispute between Qatar and the other GCC states, S & P said political and economic cooperation will both improve, but the damage done to the three-year boycott, both real and perceived, will remain.

However, the agency foresees no ratings impact on the countries at present, saying they would remain as follows: Qatar (AA-/Stable/A-1+), Saudi Arabia (A-/Stable/A-2), Bahrain (B+/Stable/B), and Egypt (B/Stable/B). The UAE is not rated by the agency.

“In our view, the imposition of the boycott has undermined the perception of unity put forward by GCC leaders prior to the diplomatic rift. We believe that underlying differences in foreign policies will likely still weigh on relations among GCC countries, despite the formal reconciliation,” said S & P in RatingsDirect report .

The resolution will however support improvement in the region’s broader business and investment environment, S & P said.