Qatari businesses find new suppliers after Gulf blockade

CD Network
June 15, 2017

Doha, Jun 15: The sanctions imposed by Saudi Arabia and other Arab states on Qatar have been a blessing for Mohammed Kuwari and his al-Rawa brand of yoghurt. With competing Saudi products off the shelves, his business is booming.

qatar

“Our sales doubled! There's lots of production as you can see and we have a big share in the market now,” said the 30-year-old dairy factory owner.

Previously he struggled to compete against products trucked in from Saudi firms like the Middle East's biggest dairy, Almarai.

But last week Saudi Arabia, the United Arab Emirates, Egypt and Bahrain imposed an economic and diplomatic boycott on Qatar, accusing the small Gulf state of funding terrorism and cosying up to their enemy Iran, which Qatar denies.

The measures have disrupted imports in Qatar, which buys most of its food from the neighbors that have ostracized it.

Change in trading patterns?

Qatar's own mostly small consumer businesses say they are finding new suppliers, which could alter established trading patterns in the Gulf.

Plastic and cardboard that Kuwari's company uses to make packaging are stuck in containers in Dubai, he said.

“We were stunned at first. Our supply of raw materials was completely cut off,” said Kuwari. “But we took action.”

Kuwari says he will terminate contracts for raw materials from the Dubai-based conglomerate JRD international worth 30 million riyals ($8.21 million) a year. Instead he is forging deals with Turkish, Indian and Chinese companies to secure future supplies that will be shipped to Qatar via ports in Oman and Kuwait.

Pulling plug on contracts

Qatar typically imports perishable goods through its land link with Saudi Arabia. Millions of dollars of other goods and materials also come every month via Dubai's Jebel Ali port which serves as a major re-export hub for the Gulf.

Businesses in Qatar say they are pulling the plug on UAE and Saudi contracts, and don't expect to resume them even if the diplomatic storm blows over.

“We are not working with them again. They didn't honor their agreements. Our products are being held up there,” said Ahmed al-Khalaf, chairman of International Projects Development Co. and owner of a Qatari meat processing plant that imports materials from the UAE.

“We may not have many factories in Qatar but we have the money to buy from other sources.”

Richest country

Qatar is the world's richest country per capita, with just 2.7 million residents and income from the world's biggest exports of liquefied natural gas. Nearly 90 percent of its population are foreign guest workers, mostly from South Asia or poorer countries in the Middle East.

Dubai offers lower costs and shorter shipping times than many other ports in the Middle East. But Oman's Sohar port has been trying to compete by expanding its capacity. Business from Qatar could help that effort.

On Monday, Qatar launched two new shipping services to Omani ports as the gas-rich country seeks to secure food supplies closed off by the Saudi-led boycott.

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Agencies
July 26,2020

Jeddah, Jul 26: The city of Makkah is opening its arms again to welcome pilgrims for the annual Hajj — although only a handful compared with previous years.

Because of the COVID-19 pandemic, this year’s event is limited to about 1,000 pilgrims, all from inside Saudi Arabia, about 700 of whom are expatriates.

Abdullah Al-Kathiri, an Emirati and a recovered COVID-19 patient, postponed his pilgrimage last year because it coincided with his wedding plans. “I’ve heard from many who’ve performed the pilgrimage in past years that it was always a smooth process, even with the massive numbers,” he said. “So you could imagine how it would be with the limited number of pilgrims this year. Surely it will be a great experience.”

Khadija, a Bulgarian expatriate, was overcome with tears when she heard she would be performing Hajj this year. “I didn’t expect they’d accept,” she said. “I’m sure this year’s Hajj will be an exceptional one in all respects.”

Dr. Haifa Yousef Hamdoon, a Tunisian physician in Qassim, is another who did not expect to be accepted because of the low numbers this year. “When I received confirmation of my request, I was overjoyed and couldn’t believe it,” she said.

Mu’taz Mohamed, a Sudanese pilgrim who also lives in Qassim region, praised the preventive and precautionary health measures taken in order to ensure his safety and that of other pilgrims, to enable them to perform the rituals safely.

After completing their arrival procedures, the pilgrims were taken to their accommodation in Makkah, supervised by the Ministry of Hajj and Umrah. They will stay there for four days before beginning their pilgrimage on July 30.

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News Network
May 20,2020

Cairo, May 20: A senior Kuwaiti lawmaker has called for imposing a tax on expatriates’ remittances to shore up the country’s finances.

MP Khalil Al Saleh, the head of the parliament’s Human Resources Committee, has presented a draft law on the proposed tax to the legislature.

“Imposing fees on expatriates’ transfers will have a role in improving the state's revenues and diversify sources of income,” he told Al Rai newspaper.

Migrant workers transfer about 4.2 billion dinars annually from Kuwait, he added, citing figures from Kuwait’s Central Bank.

“This system is in effect in most countries of the world and in more than one Gulf country. Expats there have not objected to it. Allowing this money to exit the country is very dangerous and has a direct effect on economy,” MP Al Saleh said.

“We do not target brotherly expats because imposing symbolic fees on financial transfers will not affect their money, but will have a positive effect on the state’s sources,” he said. “This has become a necessity after the money transferred outside Kuwait has reached 4.2 billion dinars annually without the state [Kuwait] making any benefit from this.”

Foreign workers make up 3.3 million of Kuwait’s 4.6 million population.

Several Kuwaiti public figures have recently pushed for redrawing the demographic imbalance in the country, accusing expatriates of straining health facilities and increasing the Covid-19 threat.

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Agencies
August 2,2020

Kuwait, Aug 2: Kuwait has barred entry of foreign passengers from over 30 countries including India and China.

A circular from the Director General Civil Aviation, State of Kuwait directed all airlines operating at Kuwait International Airport to adhere to the instructions in this regard.

"Based on the decision of the Health Authority in State of Kuwait, no foreign passenger coming from the down listed countries will be allowed to enter the State of Kuwait," the circular read.

These include- India, Iran, China, Brazil, Colombia, Armenia, Bangladesh, Philippines, Syria, Spain, Singapore, Bosnia and Herzegovina, Sri Lanka, Nepal, Iraq, Mexico, Indonesia, Chile, Pakistan, Egypt, Lebanon, Hong Kong, Italy, North Macedonia, Moldova, Panama, Beirut ,Serbia Montenegro, Dominican Republic and Kosovo.

The circular stated that such restriction will also include the passengers were present 14 days before the date of travel until further notice.

The ban was announced the same day Kuwait began a partial resumption of commercial flights according to Khaleej Times, which quoted authorities stating that Kuwait International Airport would run at about 30 per cent capacity from Saturday, gradually increasing in coming months.

According to the latest data from Johns Hopkins University, Kuwait has reported 67,448 cases of coronavirus while the fatalities related to the virus stand at 453.

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