The Economist: The Boycott of Qatar Is Hurting Its Enforcers

Saudi Arabia, the UAE, Bahrain and Egypt “closed their borders and cut diplomatic ties with Qatar” in June and in the four months since, the effects of the broad-based boycott have hit both ways, observes the Economist. The quartet continues to push the Qatar to stop supporting political Islamist groups like the Muslim Brotherhood and “to shut down Al Jazeera, the Arab world’s most popular broadcaster.” Meanwhile, Qatar’s government has funneled nearly $39 billion into the Qatari economy from its own reserves of $340 billion, and Gulf tourism has dropped by more than 70 percent since June. At the same time, “the boycott is also hurting others across the Gulf, including some of the countries that imposed it,” the article notes. Dubai, as services hub, is hit hard. Nixed relations with Qatari firms increases the potential for layoffs, and Dubai’s property market will miss the Qatari property purchases – totaling $500 million for the previous year. Moreover, the blockade not only weakens the six-nation Gulf Cooperation Council, or GCC – as Qatar, Saudi Arabia and the UAE are members – it also boosts rival Iran. The Economist points out that Iranian exports to Qatar grew by about 60 percent since the boycott began. –YaleGlobal