Tuesday 5 January 2021

UPDATE 1-Gulf economy gets a boost from healing of #Saudi- #Qatar rift | Reuters

UPDATE 1-Gulf economy gets a boost from healing of Saudi-Qatar rift | Reuters

A resolution to Qatar’s three-year-old dispute with Saudi Arabia and three other Arab countries will benefit Qatar and its global airline, and advantages could ripple through the whole region as it recovers from lower oil prices and the coronavirus crisis.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed diplomatic ties and transport links with Qatar in 2017 over what they called its support for Islamist militants, an accusation Doha rejected.

On Monday, a senior Trump administration official said a breakthrough had been reached and that an agreement aimed at ending the rift was to be signed in Saudi Arabia on Tuesday. Riyadh reopened its airspace and land and sea border to Qatar on Monday.

“We should see significant cost saving for some Qatari companies on the fuel and logistics side. With a full removal of the blockade, Qatar Airways stands to benefit significantly on fuel cost, which would help them in offering competitive prices to travellers,” said Joice Mathew, senior research manager at United Securities.

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