Jun 05 2017, 7:24 PMJun 13 2017, 4:16 PMJune 05 2017, 7:24 PMJune 13 2017, 4:16 PM
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 more than a few days. “If it lasts April we are likely to see rapid increases in risk pricing," warned Emad Mostaque of Capricorn Fund Managers.