Blockade: Losses mount for Saudi, UAE companies

The daily losses of a considerable number of Saudi Arabian and UAE companies continue to escalate due to the unfair blockade imposed on Qatar by their governments, local Arabic daily Arrayah reported on Sunday.

Some economists and business experts affirmed that the Qatari economy is gaining more strength against the blockade, while many companies in Saudi Arabia and the UAE are under the risk of closure."These companies are suffering great losses due to the blockade imposed on Qatar, which put them in a significantly critical situation resulting from the unstudied decision taken by their government," the daily explained.According to experts, the losses of the Saudi companies would be more than the ones in the UAE as there are 315 Saudi companies working in Qatar with 100% Saudi capital while there other 303 Saudi companies with Qatari partners. "The Saudi companies' capital in Qatar is estimated to be QR1.23bn. They are also taking part in a good number of strategic infrastructure projects in the country, in addition to important projects for the preparation of FIFA 2022 World Cup. Again, the blockade is considered a serious threat to stop the operations and business of such companies due to the political stands of their country of origin."Similarly, there are many UAE companies working in Qatar and they are under the threat to close down their business, only because of their government's stand. Their contracts are worth millions of dollars. The UAE banks could also face the risk of losing substantial deposits and loans. "The blockade also undermines the fame of Jebel Ali Port, which the UAE prides of being a free international hub for trade and the largest sea port in the Middle East," Arrayah added.