Economic implications of Qatar border closure for UAE and Dubai

Most of the focus since the announcement of the breaking of diplomatic ties with Qatar and the imposition of air traffic and border controls has been on the potential impact on the Qatar economy, given its size and vulnerability to its exclusion from the rest of the region. In particular its dependence on external sources for food (KSA) and for building supplies, steel, iron, electronic equipment, machinery etc. (UAE) have been well commented on.    

However, there are also implications for the UAE economy particularly the longer the crisis persists.

Assuming that the standoff continues for some time we have looked at the potential impact on the UAE and on Dubai economies, focusing on a number of key channels namely, foreign trade, air services and airlines, tourism and retail spending, real estate, financial/banking, energy, and financial markets.

Many of these risks would increase if the integrity of the GCC was brought into question by a more drawn out crisis, as this would impact foreign investor confidence in the GCC which has traditionally been seen as a unified political bloc.   

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