Rates frightening for inflation in daysTruth Consultancy
• Abu Dhabi – Abdul Hai Mohammed
Date: 08 June 2017
A senior economic expert stressed that the Qatari economy will be subject to severe suffocation in a few days because of the decision of boycotting by Saudi Arabia, the UAE and Bahrain. Reda Mosallam, partner of the Trout Economic Consulting Company in Abu Dhabi, told the «statement» The decision of the three Gulf countries to close their air, Qatar will lead to severe scarcity of food commodities, both strategic and complementary.
He pointed out that the decision of the province was characterized by surprise and rapid speed, which led Qatar to store large quantities of basic foodstuffs such as rice, flour, sugar and oils.
He pointed out that Qatar imports more than 90% of its food imports from Saudi Arabia and the UAE in particular. He pointed out that the sudden decision of the province showed clear effects yesterday and yesterday, with the influx of hundreds of thousands of citizens and residents in Qatar to major shopping centers to buy the largest quantities of food in anticipation of any Expected scarcity.
He pointed out that the situation of scarcity will appear first in a large amount of food, which is particularly in demand during the month of Ramadan, especially meat, poultry and fish, and is expected to see during the next few days a large scar in these important food commodities after the closure of Saudi Arabia borders with Qatar, These borders are the only effective and semi-efficient outlet from which vegetables, fruits and meat from Jordan, Syria, Lebanon and Egypt enter.
“It is expected that many commodities will witness a severe scarcity in the coming days, which will lead to high prices and the creation of dangerous and frightening waves of inflation will inevitably suffocate the Qatari economy.
He notes that the continued closure of the Saudi border with Qatar will force the ruling authority in Qatar to rely more on air transport, which will increase the cost of imported goods, and will need to contract with new suppliers to provide goods quickly.
“The expensive cost of importing goods may not be a matter of concern to the ruling Qatari authority, but the problem here is that the length of the siege will be very painful and difficult,” he says.
He added that land transport is the best and cheapest to transport goods and foodstuffs, especially vegetables and fruits, and Qatar depends on the outside to provide the majority of its living needs, as it is a state of consumption excellence and has no domestic production, and rely heavily on Saudi markets, especially in basic foodstuffs by 90% , And will therefore be severely affected. This effect will appear within days on prices within Qatar, where we will see increases hundreds of times.
“The sight of the long queues in front of shops in Qatar to buy food for storage because they fear that the markets will continue to decline for many days and will show categories of greedy traders and the Qatari government may not be able to control the situation.