Doha – Mubasher: Citigroup said in a note released Tuesday that the severing of diplomatic relations between Qatar and some Arab nations will threaten Qatar’s preparations for the World Cup 2022.
Among the risks is the decline in economic growth on the back of weaker construction, which will be impacted by the drop in construction material imports, the note showed.
It further added that food prices and inflation in Qatar were likely to increase, particularly as most of Qatar’s food imports come from its borders with Saudi Arabia, indicating a rise in costs if Qatar imported its needs through seaports or air cargo.
Qatar Airways will be negatively impacted by the diplomatic issues, and will suffer losses following the suspension of flights from and to several countries, Citigroup noted.
This comes after announcements made by Saudi Arabia, Egypt, and the UAE, alongside other Arab countries such as Libya and Yemen, that they have cut diplomatic relations with Qatar, accusing it of supporting terrorism and Iran.
Various airlines, particularly those from Saudi Arabia and the UAE have announced suspending their flights to and from Qatar.
