The four countries leading the boycott against Qatar are going back to their list of 13 demands for Doha to meet before talks can start, essentially reverting the Arab Gulf spat back to square one.
At the same time, economic data for June shows that Qatar’s imports plummeted due to the blockade imposed by most of its neighbors, and foreign deposits at Qatari banks dropped to their lowest in nearly two years.
However, Qatar has a huge sovereign wealth fund, and boasts considerable foreign exchange reserves. Although Qatar’s non-oil economy is expected to see some pressure due to the fact that it has to use alternative trade routes, the world’s largest LNG exporter has not seen its LNG trade disrupted yet, which is precisely why analysts do not see the blockade as potentially crippling Qatar’s economy. Rather, they see it as merely straining economic growth.
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