VZCZCXRO6083
RR RUEHDE RUEHDH RUEHDIR
DE RUEHDO #0699 3361333
ZNR UUUUU ZZH
R 021333Z DEC 09 ZDK
FM AMEMBASSY DOHA
TO RUEHC/SECSTATE WASHDC 9549
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS DOHA 000699 
 
SIPDIS, SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL ECON EFIN KPAO QA
SUBJECT: QATAR SEES OPPORTUNITY IN DUBAI DEBT FALLOUT 
 
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KEY POINTS 
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--  The extended Eid al-Adha holiday has muted reactions among contacts 
regarding the fallout over DubaiQs credit crunch. 
--  Qatari local newspapers provided straight wire service reporting, 
with only a few local comments, focused primarily on claims that Qatari 
exposure in Dubai is low, and that the crisis provides an opportunity 
for Qatar to showcase itself as a haven for investment. 
 
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COMMENTS 
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--  (SBU) It is not yet known the extent to which Qatari institutions 
and individuals are hurt by the bad economic news from Dubai, but we do 
know that many Qataris are invested there and have counted on Abu 
Dhabi's wealth as an insurance policy for investments in Dubai. 
 
--  (SBU) Embassy contacts have long expressed confidence that Qatar's 
vast natural gas resources insulate it from the misfortunes in Dubai 
and elsewhere. They note that Qatar's Amir has the means to make good 
on Qatari debts in the worst-case scenario. 
 
--  (SBU) Doha has often fancied itself the "anti-Dubai."  This latest 
development provides another example to illustrate the two cities' 
different approaches to development, and it remains to be seen if the 
latest round of problems in Dubai will benefit Qatar as an investment 
alternative. 
Arabic Reporting 
---------------- 
 
¶1. (U) Arabic-language print media reporting was largely drawn from 
wire services.  Local content focused on QatarQs lack of exposure in 
Dubai and the opportunity that Dubai's woes provide to showcase Qatar 
as an investment destination.  The following are representative quotes: 
--  Al Sharq daily quoted Dubai ruler Mohammed Al Maktoum as saying 
that, the global reaction had shown "a lack of understanding, but we 
are strong and persistent."  Financial analyst Abdullah al-Khater was 
quoted as saying that the sharp drops in the Qatar Stock Exchange were 
"due to the psychological impact" of Dubai's credit problems. 
-- Al Raya daily quoted Qatar Chamber of Commerce and Industry deputy 
chairman Abdul Aziz Al Emadi as saying that Qatar's government is 
always on the alert and well prepared to deal with such risks. Qatar's 
investments in Dubai are "not very high," he said. 
-- Al Watan daily quoted the deputy chairman of Qatar Islamic Bank, 
Mohammed Al Mana', expressing confidence in Dubai's ability to overcome 
the crisis, adding that its impact on the Qatari economy will be "very 
limited and temporary." 
--  Al Arab daily quoted a foreign economist as saying that the debt 
crisis would have an impact on the entire region, which would not 
recover investor confidence prior to the first quarter of 2010. The 
economist added that the crisis would provide opportunities for the 
emergence of new players in the Gulf, like Qatar and Saudi Arabia. 
Al Arab also quoted the director general of Bait Al Istithmar 
("Investment House"), Ahmed Muses, who said that the crisis would open 
new investment opportunities to Qatar. 
--  Al Sharq daily quoted Dr. Mohamed Khalil Najdawi,  Dean of the 
Faculty of Business and Economics at Qatar University, as saying that 
Dubai's debt crisis would have repercussions for some countries, but 
not all the Gulf states.  Najdawi said that despite the financial 
crisis, Dubai has entered into new projects...for Dubai this is to 
convince investors that it is not affected by the crisis or to show 
that Dubai is combating the crisis by establishing new projects. 
English Reporting 
----------------- 
 
¶2. (U)  Qatari English-language reporting also drew from wire services, 
with local content emphasizing Qatar's exposure more than in the Arabic 
press.  Representative quotes include: 
 
--  The Peninsula daily:  "Despite reports in the media suggesting that 
Qatar might not be substantially affected by the unfolding crisis in 
Dubai, some Qatari banks and corporate entities do have exposure to 
Dubai, in particular, and the UAE as a whole.  The country's largest 
lender, Qatar National Bank acquired a 23.8 percent stake in UAE-based 
Commercial Bank International." 
The Peninsula also quoted financial analyst Taha Abdul Ghani as saying 
that the main worry for Qatar would be if foreign portfolio funds exit 
from the local stock exchange in the wake of the Dubai crisis. 
--  Gulf Times daily noted that Qatari stocks tumbled 8.27 percent 
"amid worries the country could be exposed to the Dubai debt crisis, 
[and]...all four sectors in the Qatari index, led by banks, dropped 
sharply with many listed firms falling close to the maximum allotted 10 
percent." 
The paper continued, "the strong reaction by Qatari stocks is obviously 
linked to the 'believed exposure' of local companies to the UAE economy 
in general and that of Dubai in particular."  It quoted financial 
analyst Abdullah al-Khater as saying the impact was "minimal," and 
"more related to the psychological impact." 
 
NANTONGO