A decision by Qatar's neighbouring nations to cut economic and diplomatic ties is a blow for Qatari banks, which are already stretched by financing the $200bn 2022 World Cup, declining cash reserves and higher interest rates. The decision puts foreign deposits at risk of withdrawal – particularly those from the six-nation Gulf Cooperation Council. Although Qatar has major holdings in Barclays, Credit Suisse and Deutsche Bank, its banking system relies heavily on foreign cash. Non-resident deposits made up 24% of deposits in Qatar's 18 lenders in April. In an interview with Bloomberg News, Sheikh Hamad said he was "shocked" that his country had been singled out as one of only three countries whose citizens could be barred entry into Qatar.
A decision by Qatar's neighbouring nations to cut economic and diplomatic ties is a blow for Qatari banks, which are already stretched by financing the $200bn 2022 World Cup, declining cash reserves and higher interest rates. The decision puts foreign deposits at risk of withdrawal – particularly those from the six-nation Gulf Cooperation Council. Although Qatar has major holdings in Barclays, Credit Suisse and Deutsche Bank, its banking system relies heavily on foreign cash. Non-resident deposits made up 24% of deposits in Qatar's 18 lenders in April. “If it lasts more than a few days we are likely to see rapid increases in risk pricing," warned Emad Mostaque of Capricorn Fund Managers.