Economic Impact On Qatar Will Be Contained In Near Term - RAM

KUALA LUMPUR, June 9 (Bernama) -- RAM Rating Services Bhd believes that the economic and financial impact of the Gulf dispute on Qatar would be contained in the near term, although the abruptness and severity of the crisis raises uncertainties on how soon the differences could be resolved. This is because gas exports have not been curtailed and the supply chain could be adjusted, albeit at a possibly higher cost, RAM said in its assessment of the impact of the Qatar diplomatic crisis. A total of nine Gulf states have so far severed ties with Qatar, a country of nearly 2.3 million people, mostly foreign workers. “As the situation is highly fluid, we are awaiting guidance from the central banks of the other Gulf Cooperation Council (GCC) member countries on issues pertaining to capital flows, trade finance and how these could affect businesses and a potential capital pullout from Qatar,” RAM in a statement Friday. Meanwhile, RAM's Head of Sovereign Ratings, Esther Lai said: “Known for its more assertive stance on foreign policy, Qatar rifts with its GCC neighbours have always been a negative rating factor.” She also said given Kuwait's present role as a mediator, RAM believed that GCC's long-term interests remained aligned at this juncture. The nine countries severing ties with Qatar are Saudi Arabia, the United Arab Emirates, Egypt, Bahrain, Yemen, Mauritius, Mauritania, the Maldives and Libya's eastern-based government. RAM Rating Services, a wholly owned subsidiary of RAM Holdings Bhd, is the leading and largest credit rating agency in Malaysia and Southeast Asia. -- BERNAMA