Dubai: The reopening of land, air and sea borders between the UAE and Qatar is expected to see a surge in businesses between the two nations while the ending of a three-year standoff between Qatar and its immediate neighbours will benefit Qatar and GCC economies in the medium term, according to analysts. “The reopening of borders will allow the recommencement of cross-border trade, services and travel that has been largely in hiatus since the.
06 Jan 2021 - 9:10
The Peninsula
Normalisation of relations between Qatar and its neighbours, signaled by the imminent reopening of borders with Saudi Arabia, will help Qatar’s non-oil economy.
However high public sector debt will remain a drag on the country’s ‘AA-’/Stable sovereign rating, said Krisjanis Krustins, Director, Sovereign Ratings, Fitch Ratings.
A resumption of travel links will eventually lift tourism inflows, and greater interest from regional buyers could support the real estate market.
“Qatar will post a roughly balanced budget in 2020, including estimated investment income from QIA assets. The 2021 budget plans for a deficit of 6 percent of GDP excluding investment income, at an oil price of $40/bbl. We see this as broadly realistic,”