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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News Network
February 24,2020

Dubai, Feb 24: Kuwait and Bahrain confirmed on Monday their first novel coronavirus cases, the countries' health ministries announced, adding all had come from Iran.

Kuwait reported three infections and Bahrain one in citizens who had returned home from the Islamic republic.

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Agencies
July 2,2020

With the launch of the Emirates Mars Mission less than a couple of weeks away, the spacecraft that will carry the UAE's Hope Probe to outer space has already been fuelled, it was announced today.

At a virtual briefing by the Mohammed bin Rashid Space Centre (MBRSC) today, the media was informed that scientists are busy giving finishing touches to the Hope Mars Mission, which will give mankind a complete picture of the Martian atmosphere once the UAE's indigenous probe reaches the Red Planet's orbit in 2021.

As the monitoring continues, final charging of the batteries is also ongoing, scientists said.

The space engineers averred that with this mission, the momentum in the region for space awareness will continue not only among young Emiratis but also among other youngsters in the Arab world.

The Hope Probe is scheduled to take off from Japan's Tanegashima Space Centre on July 15 at 00:51:27 UAE time.

The first Arab space mission to the Red Planet remained on track despite the challenges arising from the Covid-19 pandemic.

The spacecraft will provide the first global pictures of the Martian atmosphere and data will be shared freely with over 200 research centres across the world. It will help answer key questions about the global Martian atmosphere and the loss of hydrogen and oxygen gases into space over the span of one Martian year.

450 engineers, technicians and experts are involved in the project.  This comprises of 12,000 tasks in 6 years and entails 5.5 million working hours.

It includes 200 new technologies and 15 scientific partnerships with global universities and institutions.

The spaceship will travel 495 million km. It has a cruise speed of 121,000km/hour.

MBRSC is responsible for the execution and supervision of all stages of the design, development and launch of the Hope Probe. The UAE Space Agency is funding and supervising procedures and necessary details for the implementation of this project. After its launch in mid-July and following a journey of several months, the probe is expected to enter the Red Planet's orbit in 2021, coinciding with the Golden Jubilee of the Union.

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Agencies
April 27,2020

Riyadh, Apr 27: A Saudi Arabia-led coalition said on Monday that all parties need to return to the status that existed before the Southern Transitional Council (STC) in Yemen declared an emergency in Aden, according to a statement published by Spa.

The Coalition to Restore Legitimacy in Yemen, led by Saudi Arabia and the UAE, stresses the need to restore conditions to their previous state following the announcement of a state of emergency by the Southern Transitional Council and the consequential development of affairs in the interim capital (Aden) and some Southern governorates in the Republic of Yemen.

The Coalition urges for an immediate end to any steps contrary to the Riyadh Agreement, and work rapidly toward its implementation, citing the wide support for the agreement by the international community and the United Nations.

The Coalition has and will continue to undertake practical and systematic steps to implement the Riyadh Agreement between the parties to unite Yemeni ranks, restore state institutions and combat the scourge of terrorism. The responsibility rests with the signatories to the Agreement to undertake national steps toward implementing its provisions, which were signed and agreed upon with a time matrix for implementation. The Coalition demands an end to any escalation and calls for return to the Agreement by the participating parties, stressing the immediate need for implementation without delay, and the need to prioritise the Yemeni peoples' interests above all else, as well as working to achieve the stated goals of restoring the state, ending the coup and combatting terrorist organizations.

The Coalition reaffirms its ongoing support to the legitimate Yemeni government, and its support for implementing the Riyadh Agreement, which entails forming a competent government that operate from the interim capital Aden to tackle economic and developmental challenges, in light of natural disasters such as floods, fears of the coronavirus (Covid-19) pandemic outbreak, and work to provide services to the brotherly people of Yemen.

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