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DOHA: With the new high-rise buildings of downtown Doha in the background, Qatari women and a man enjoy walking by the sea in Doha. — AP Qatar can defend economy and currency: FM Qatar Central Bank ‘operating normally despite crisis’

DUBAI: Qatar can easily defend its economy But Emadi said the energy sector and Qatari riyal.” Asked whether Qatar might need sever ties with the emirate. In a statement Arab Emirates, Bahrain and others to cut ties and currency against sanctions by other Arab economy of the world’s top liquefied natural to raise money by selling off stakes in large released on the state-run Qatar News Agency with Doha over its support for “terrorism”, a states, Qatari finance minister Ali Sherif Al- gas exporter were essentially operating as Western companies held by its sovereign (QNA), Central Bank governor Sheikh charge the emirate vehemently rejects. Saudi Emadi told CNBC television in an interview normal and that there had not been a serious wealth fund, Emadi indicated this was not on Abdullah bin Saud Al-Thani dismissed con- Arabia on June 5 sealed Qatar’s only land bor- broadcast yesterday. impact on supplies of food or other goods. the cards at present. cerns over liquidity levels. “The banking and der, and the country has been banned from He added that the countries which had Qatar can import goods from Turkey, the Far “We are extremely comfortable with our banking transactions and procedures in the using the airspace of both Saudi Arabia and imposed sanctions would also lose money East or Europe and it will respond to the crisis positions, our investments and liquidity in our State of Qatar continue to be normal, both at the United Arab Emirates. because of the damage to business in the by diversifying its economy even more, he systems,” he said. Prices of Qatar’s international the level of local financial transactions and Qatari citizens have been ordered to leave region. “A lot of people think we’re the only told CNBC. The Qatari riyal has come under bonds have dropped sharply, but in answer to between the Qatari banking sector and for- the two countries within two weeks. The UAE ones to lose in this... If we’re going to lose a pressure in the spot and forward foreign another question, Emadi said he saw no need eign banks,” the statement read. It added that has also ordered its banks to stop dealing dollar, they will lose a dollar also.” exchange markets, but Emadi said neither this for the government to step into the market the governor “stressed that the liquidity levels with major Qatari lenders. Rumors have circu- Saudi Arabia, the United Arab Emirates, nor a near 10 percent plunge in the local and buy those bonds to support prices. in the Qatari banking sector are good and lated in Doha that some exchanges have been Bahrain and Egypt cut diplomatic and trans- stock market was cause for concern. meet all customer requirements”. Doha is hit by a shortage of dollars, potentially affect- port ties a week ago, accusing Doha of back- “Our reserves and investment funds are No liquidity crisis seeking to reassure customers as it is gripped ing remittances by Qatar’s migrant workforce, ing terrorism. The sanctions have disrupted more than 250 percent of gross domestic Qatar’s Central Bank said yesterday bank- by the biggest diplomatic crisis to hit the estimated at more than two million people. flows of imports and other materials into product, so I don’t think there is any reason ing transactions at home and abroad were region in years. The World Bank estimates that expat workers Qatar and caused many foreign banks to scale that people need to be concerned about continuing normally despite the diplomatic Qatar has found itself isolated following a in Qatar sent home $11.4 billion (10.1 billion back their business with the country. what’s happening or any speculation on the crisis which has seen several Gulf countries decision last week by Saudi Arabia, the United euros) in 2015. — Agencies Natural gas built Qatar and now it may protect country

DUBAI: Natural gas built the high-rises of Growth Saad Sherida Al-Kaabi, Qatar Petroleum’s Qatar’s capital, put the Al-Jazeera satellite Qatar, a country of 2.2 million people president and CEO, said Saturday that he news network on the air and a fleet of passen- where citizens make up over 10 percent of the wanted to assure customers “of our deter- gers jets for its state carrier in the sky. Now, it population, discovered the offshore North mined efforts to continue uninterrupted sup- may be what protects Qatar as it is in the cen- Field in 1971, the same year it became inde- plies.” A statement from the state-run firm also ter of the worst diplomatic crisis to strike the pendent. It took years for engineers to discov- made a point to note that the UAE, Egypt and Gulf in decades. er the field’s vast reserves, which shot Qatar to Jordan all rely on its natural gas. As the world’s biggest exporter of liquid No. 3 in world rankings, behind Russia and Qatar could retaliate by shutting down the natural gas, Qatar’s supplies keep homes Iran, with which it shares the North Field. undersea Dolphin Energy pipeline, which warm in the British winter, fuel Asian markets It began exporting natural gas in 1997, just sends about 2 billion cubic feet (56 million and even power the electrical grid of the after Qatari Crown Prince Hamad bin Khalifa cubic meters) of natural gas a day into the United Arab Emirates, one of the main coun- Al-Thani seized power from his father, Sheikh UAE, about a third of its daily need. About 200 tries that has cut ties to the energy-rich nation. Khalifa, in a palace coup. Sheikh Hamad used million cubic feet (5.66 million cubic meters) So far, its supplies have continued uninter- revenue from the natural gas to pursue a of that goes onto Oman. rupted since the diplomatic dispute began last diplomatic path away from Saudi Arabia, long Dolphin Energy, owned by the Abu Dhabi week. Natural gas markets have yet to respond the heavyweight among Gulf countries. Qatar sovereign wealth fund called the Mubadala to the rift and prices have remained stable. But also secured hosting the 2022 FIFA World Cup, Development Co., French oil giant Total SA Qatar wields a potential economic weapon if relying on that money to build stadiums and and Houston-based Occidental Petroleum, did the crisis escalates and countries around the develop Doha, its capital. not respond to a request for comment. world that depend on its supply may find As a hedge, Qatar hosts some 10,000 Without that natural gas, electricity plants themselves needing to side with the nation American soldiers and the forward headquar- in Dubai and the UAE capital of Abu Dhabi that is home to a major US military installation. ters of the US military’s Central Command. wouldn’t be able to power air conditioners to “If Qatari gas exports were to be blocked, Other nations also operate forces out of Qatar. beat the brutal heat of summer now countries like Britain, Japan, South Korea and Its military, numbering around 11,800 troops, descending on the desert sheikhdoms, nor China would have an energy crisis and would is only bigger than Bahrain’s. run its vital desalination plants producing have to scramble to get their energy else- water. It would take time to import that gas where,” said Kristian Coates Ulrichsen, a Natural gas from another source. Seattle-based research fellow at the James A. Qatar’s shipborne exports of liquid natu- “If Qatar was to do anything like that, in Baker III Institute for Public Policy at Rice ral gas have continued to travel unhindered Dubai the lights would probably go off,” said University who has extensively studied Qatar. out of the Persian Gulf as well, though they Christopher Davidson, a professor of Middle “For any small country, particularly a small could be a target if the crisis escalates. East politics at Durham University in Britain. country in the Gulf surrounded by much larger Qatar’s biggest Asian clients are Japan, India “If this were to happen, it would be such an and potentially expansionary powers, having and South Korea, according to energy escalation from Qatar’s side, the UAE and international partnerships is a key tool of your research firm Wood Mackenzie. About a third Saudi would up the ante even more. ... If they DOHA: In this April 4, 2009 file photo, a gas production facility is seen at Ras external security,” he said. “I think that may be of British gas supplies come from Qatar, were to do that, I think it would be no holds Laffan, Qatar. Natural gas exports may help Qatar protect it in the ongoing dis- what the Qataris are banking on right now.” which leads Europe. barred.”— AP pute it has with other Arab nations. — AP