Arab enemies may impose new sanctions on Qatar

Significance

Hopes for a swift resolution of the Gulf crisis were dashed on June 23 when details emerged of a list of 13 demands sent by the four countries that launched a boycott of Qatar on June 5: Saudi Arabia, the United Arab Emirates (UAE), Egypt and Bahrain.

Impacts

• The concept of the Gulf Cooperation Council (GCC) as a common market has been permanently damaged.
• An increased political risk premium will raise borrowing costs across the GCC.
• Firms in Qatar will find it harder to retain and recruit professional expatriate staff.