Qatar Airways staff stand at their office in Hamad International Airport in Doha, Qatar, June 7, 2017. REUTERS/Naseem Zeitoon
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With Qatar increasingly isolated from its Gulf neighbors in an escalating geopolitical crisis, the economic and financial implications are starting to emerge. The country, which has been accused of supporting Islamist militant groups by Saudi Arabia, Bahrain, the United Arab Emirates and Egypt, relies on other Gulf states for about 20 percent of its imports and almost half of its tourists, according to Dubai-based Arqaam Capital Ltd. Billions of dollars of infrastructure projects are also at stake as it prepares to host the 2022 football World Cup.Nonresident deposits made up 24 percent of deposits in the country's 18 lenders in April, according to the central bank. That compares with 1.2 percent in Saudi Arabia and 12 percent in the UAE.Potential loser: Abu Dhabi's Dolphin Energy, which supplies the UAE and Oman with about 2 billion cubic feet of Qatari natural gas per day via a 364-kilometer undersea pipeline, is still operating despite diplomatic tensions.Real EstatePotential losers: Dubai-based contractor Drake & Scull International PJSC, which has shed more than 10 percent of its market value this year, has about 500 million dirhams ($136 million) of projects in Qatar, according to Majd Dola, senior research analyst at Al Ramz Capital.Still, just 0.5 percent of Damac's revenue comes from outside the UAE, it said in its first-quarter earnings.
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