The
present Gulf crisis has so far proven Qatar’s robust ‘alternative line
of defence’ in a bid to ensure sustained economic growth, according to a
former diplomat from an Asian country.
Ever since the fall in the
global energy prices, the Gulf Co-operation Council (GCC) countries have
embarked on strategic shift in their policies but the present crisis
has by and large helped Doha reassess their weaknesses and convert them
into strengths, said the former diplomat, who was recently in Doha to
attend the Middle East Economic Future conference.
“They (Qatar) are
doing a delicate balancing act,” the visiting delegate said, apparently
referring to Doha’s position between Iran and Saudi Arabia.
Saudi
Arabia, the UAE, Bahrain, and Egypt had cut off diplomatic and trade
relations with Qatar on June 5, closing their sea and airports and
borders.
This is the second time Saudi Arabia and its allies have
recalled their envoys from Doha but in the earlier instance there was no
trade disruption.
“(This time) it (the crisis) has brought out the
best of Qatar in terms of diplomacy as seen by the growing international
clout of Doha,” the former diplomat said, referring to those powerful
countries that have voiced concern over the Gulf crisis.
HE the
Finance Minister Ali Sherif al-Emadi was quick enough to respond that
the country’s fundamentals are in a better position than its rivals as
it had huge financial reserves.
“We have sovereign wealth funds of
250% of GDP; we have Qatar Central Bank reserves and we have a Ministry
of Finance strategic reserve,” he had said.
Qatar’s large positive
net foreign assets (154% of gross domestic product or GDP) and
uninterrupted hydrocarbon will keep the economy resilient,
Washington-based Institute of International Finance had said earlier.
Ever since the blockade, Qatar was swift enough to respond by opening up new alliances in Oman, Iran, Kuwait and Turkey.
Iran
and Qatar jointly share the world’s largest natural gas reservoir
(North Field), which is home to 900trn cubic feet of natural gas.
Terming
that Qatar’s second line of defence as robust, the former diplomat
said, “The newer alliances and the opening up of new maritime and trade
routes have given Doha the business continuity.”
The Gulf country
braved the odds by diversifying its sources of imports, thus easing the
risk of potential shortages, the diplomat added.
However, a long
unsettled blockade could bring with it appurtenant costs not only to
Qatar but also to those spearheading the siege, according to a senior
official of an Asian political and diplomatic think-tank.
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