Ongoing Gulf Crisis a Risk for GCC's Credit Outlook: Moody's

Posted September 15, 2017

It's neighbours, some of which were listed as members of the Gulf Cooperation Council (GCC) voted to cut off Qatar, believing the country was complicit in the support of terrorism.

Rising debt, increased debt issuance from other GCC states, and rising U.S. interest rates had put pressure on Bahrain's financing costs since 2014, Moody's said.

During the meeting, the two sides also exchanged views about the latest efforts to boost relations between Tehran and Doha in diverse areas, including economy and trade.

Qatar's Minister of State for Foreign Affairs Sultan bin Saad Al-Muraikhi sparked tension when he started to discuss the boycott in his opening speech despite not being on the agenda.

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On the heels of the failure of regional and worldwide mediation efforts to narrow differences between the two sides, the stage is set for the growth of tension between Qatar and Saudi Arabia, especially at a time when political disputes and propaganda campaigns in the Persian Gulf have peaked.

Sheikh Ouda, in his last twitter post, had welcomed on Friday suggesting that three month old row between Qatar and four Arab countries led by Saudi Arabia may be resolved.

They cited Doha's longstanding support for the Muslim Brotherhood, blacklisted by the four Arab governments as a terrorist group, although not by Western governments or the United Nations.

Muraikhi's remarks sparked angry reactions from Ahmed al-Qattan, Saudi Arabia's envoy to the Arab League, Egyptian Foreign Minister Sameh Shoukry and Emirati State Minister for Foreign Affairs Anwar Gargash, with the Qatari minister and Qattan even telling each other to "be quiet". "If the brethren in Qatar think they may have a benefit in their rapprochement with Iran, I'd like to say that they have this evaluation wrong in every way".

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Iranian Foreign Minister Mohammad Javad Zarif said on Monday that the Islamic Republic is opposed to the application of any form of pressure and threat against its neighbors. "The Qataris will be held responsible for such a decision".

Muraikhi said Saudi Arabia was looking to depose the emir of Qatar and replace him with Sheikh Abdullah bin Ali Al Thani, a little-known Qatari sheikh who has been thrust into the limelight by the Saudi-led bloc.

UAE's Gargash said the Gulf crisis continued "due to Qatar's unwillingness for peace".

Moreover, Shoukry rejected Muraikhi's comments as "unacceptable" and "baseless insults".

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