The maiden visit to Malaysia by the Emir of Qatar, Sheikh Tamim Hamad Al Thani, has sparked interest on the potential economic ties between the two countries.
With the FIFA 2022 World Cup going to be held in the oil-rich nation, Malaysia has been reported wanting to seize opportunities in several of its projects, particularly in the construction field.
With Qatar having experienced the Saudi-led blockade since June, the country is said to be looking for new trading partners and suppliers outside the Middle East region.
Since the blockade, Malaysia has been supplying steel to Qatar, among other materials, in replace of Saudi Arabia. Qatar would also need wood for the construction projects for the 2022 World Cup infrastructures – wood that Malaysia exports.
READ: Qatar 2022 FIFA World Cup construction work progressing normally
"With what has transpired over the past six months on the 'international economic boycott' – that's what we call it when it comes to Qatar – the country is now in a position where it can start to, and needs to build trading relationships outside of the GCC (Gulf Cooperation Council) region," said Forextime vice-president (market research) Jameel Ahmad.
"This is how Malaysia can seize the opportunity. Qatar can start to build more trade relationships with Malaysia in imports and exports of various material and services," he told Astro AWANI's Market Talk on Monday.
READ: Qatar crisis: Malaysia ready to help
It was previously reported that Qatar's victory over the 2022 World Cup bid would boost the country's infrastructure projects by more than US$100 billion, based on the Public-Private Partnerships (PPPs) model.
Among the construction projects, of which some were already underway, included a rail network and eight stadiums.
"Qatar needs to diversify its economy to offset the current challenges it is facing in the international economy boycott," said Jameel. "If you look at the GDP (gross domestic product) rhythms recently from Qatar, we can say that the Qatar economy is feeling the pressure from what’s happened."
READ: Qatar says Arab states' demands 'made to be rejected'
When asked by Markets Today host Luqman Hariz if an end is in sight for the Saudi-led blockade on Qatar, Jameel said that was a tough question to answer, even for critics.
"Some people are actually quite surprised that the boycott’s lasted this long, and others say perhaps it is going to last even longer.
"What I can say is, the longer this boycott lasts, the more risks and challenges will be presented to the Qatar economy.
"But on the other hand, it (the boycott) could also mean better opportunities for other economies as well such as Asia, Southeast Asia and even Europe," he said.
READ: Malaysia, Qatar sign four MoU
Astro Awani
Mon Oct 16 2017
Sheikh Tamim Hamad Al Thani visiting the Parliament Building in Kuala Lumpur on Monday. - Astro AWANI/Shahir Omar
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