The escalating diplomatic row with the major GCC powers raises the threat of risks to the economy and wellbeing of its citizens, denting the country’s reputation Qatar as a stable but authoritarian country.

Economic risk (MEDIUM): The downgrade by Moody’s may herald an economic downturn although World Cup-related infrastructure developments will help boost output.

Political risk (MEDIUM): The political spat between Qatar and its Gulf neighbours shows little sign of resolution and could have serious impacts on geopolitical relations and business links.

Financial risk (MEDIUM): The downgrade to the banking sector by Moody’s and the response by the Qatar’s central bank indicates public recognition of the threat from the diplomatic rift. Otherwise financial risks are moderate.

Commercial risk (MEDIUM): Firms are likely to face higher costs for business in Qatar as a result of the embargo but Qatar has taken measures on foreigners’ residence status.