‘Alternative line of defence’ proves robust: former envoy

Thepresent Gulf crisis has so far proven Qatar’s robust ‘alternative lineof defence’ in a bid to ensure sustained economic growth, according to aformer diplomat from an Asian country.Ever since the fall in theglobal energy prices, the Gulf Co-operation Council (GCC) countries haveembarked on strategic shift in their policies but the present crisishas by and large helped Doha reassess their weaknesses and convert theminto strengths, said the former diplomat, who was recently in Doha toattend the Middle East Economic Future conference.“They (Qatar) aredoing a delicate balancing act,” the visiting delegate said, apparentlyreferring to Doha’s position between Iran and Saudi Arabia.SaudiArabia, the UAE, Bahrain, and Egypt had cut off diplomatic and traderelations with Qatar on June 5, closing their sea and airports andborders.This is the second time Saudi Arabia and its allies haverecalled their envoys from Doha but in the earlier instance there was notrade disruption.“(This time) it (the crisis) has brought out thebest of Qatar in terms of diplomacy as seen by the growing internationalclout of Doha,” the former diplomat said, referring to those powerfulcountries that have voiced concern over the Gulf crisis.HE theFinance Minister Ali Sherif al-Emadi was quick enough to respond thatthe country’s fundamentals are in a better position than its rivals asit had huge financial reserves.“We have sovereign wealth funds of250% of GDP; we have Qatar Central Bank reserves and we have a Ministryof Finance strategic reserve,” he had said.Qatar’s large positivenet foreign assets (154% of gross domestic product or GDP) anduninterrupted 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.Iranand Qatar jointly share the world’s largest natural gas reservoir(North Field), which is home to 900trn cubic feet of natural gas.Termingthat Qatar’s second line of defence as robust, the former diplomatsaid, “The newer alliances and the opening up of new maritime and traderoutes have given Doha the business continuity.”The Gulf countrybraved the odds by diversifying its sources of imports, thus easing therisk of potential shortages, the diplomat added.However, a longunsettled blockade could bring with it appurtenant costs not only toQatar but also to those spearheading the siege, according to a seniorofficial of an Asian political and diplomatic think-tank.