LONDON: The diplomatic and economic war between Qatar and some of its neighbors will have a negative impact on the travel industry across the Middle East — with Qatar Airways faring the worst, according to a report by Euromonitor, the global market intelligence agency.
The report, published on Tuesday, said: “Qatar Airways is the main loser in the turmoil with 30 percent of its revenues under threat.”
Euromonitor’s researchers said that there will be no winners among Middle East airlines and all carriers will see a reduction in demand. “Ethiad (UAE) and Emirates (Dubai) have significant exposure to the Qatar market and are likely to suffer financially as well.”
Saudi Arabia, the UAE, Bahrain and Egypt cut ties with Qatar in June after accusing Doha of supporting terror groups. The Qatari government denied the allegations.
In addition to severing diplomatic ties, the Anti-Terror Quartet imposed trade restrictions and ordered their citizens to leave Qatar. As a result, the Qatari economy has taken a hit with Bloomberg reporting last month that the government was in talks with banks about raising $9 billion via a bond sale following a slowdown in tourism, trade and banking.
Qatar has been shut out of four destinations in the Middle East following the embargo. Analysts said that is the equivalent of 20 percent of Qatar Airways’ seating capacity.
The Euromonitor report was released in conjunction with the World Travel Market (WTM), which is hosting the international travel fair in London and other cities around the world.
WTM London senior director, Simon Press, said: “Qatar, Ethiad and Emirates are among the world’s leading airlines and have helped the economic prosperity of the region to grow in recent years. Hopefully, the current situation can be addressed and the region’s travel industry can return to growth.”
Gulf airlines are struggling anyway, as overcapacity, security concerns and the fallout from low oil prices take their toll. The crunch has sparked talk about Gulf airline consolidation, as reported by Arab News on Nov. 2.
Emirates, the oldest and largest of the Gulf airlines, posted its first full-year profit decline for five years in May, as earnings crashed more than 80 percent. Etihad’s losses in 2016 hit $1.9 billion, which included about $800 million of impairment charges related to its equity stakes in other struggling carriers, some of which are worthless.
According to the Euromonitor report, Asian cities dominate the global destination rankings in 2017, thanks to the unstoppable rise of Chinese outbound tourism demand. Hong Kong is the most visited city in the world, followed by Bangkok, which overtook London in 2015. Wouter Geerts, a senior travel analyst at Euromonitor International, said: “Asia Pacific is the standout region driving change in travel. We expect the region to continue growing in the coming decade with Singapore overtaking London as the third most visited city in the world by 2025, giving the podium fully to Asia.”
Performance in the Middle East and North Africa has fluctuated greatly in recent years, but Euromonitor’s forecast shows a recovery for the region in 2017 and beyond.
“While MENA’s main challenges remain wars and border disputes, Sub-Saharan Africa is looking to do the reverse: Opening borders and enhancing collaboration with the African Union for a plan toward seamless borders,” Euromonitor said.
The performance of European cities has been hampered by the Eurozone and migrants’ crisis, as well as Brexit and terrorist attacks. Despite the uncertainty, some European destinations, in particular Greece, Italy and Spain, have profited from unrest in the Middle East and North Africa.
Qatar Airways is the main loser among Gulf carriers in boycott
Qatar Airways is the main loser among Gulf carriers in boycott
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
