Economic relations of Britain and Qatar could be strengthened as a result of the British departure from the European Union.
Brexit and Qatar:
The exit of the UK from the European Union, embodied in the referendum last June, will mean more economic and business opportunities for Qatar and the Gulf countries.
Taking into account that these countries already had a privileged economic relationship with London compared to the rest of Europe, Brexit could strengthen these ties:
- With the UK outside the European Union, negotiating agreements with the Gulf countries could be easier and faster as the current unanimous agreement of all EU countries would no longer be necessary. Therefore, bilateral agreements between Britain and each of the Gulf countries would replace the current free trade agreements with the EU.
- Brexit could lead to a shift in the paradigm of international economic policy in the UK. London would have to negotiate individual bilateral agreements with each country, which would promote the UK becoming an export-based economy: amongst the Gulf countries, the UAE is the leading nation in economic relations with London.
- Finally, a weak pound could further encourage the acquisition of public debt but may also increase private investment due to the need for these countries to diversify their economies, too focused on energy and afflicted by the drop in oil prices.
In short, the United Kingdom has ample means to weather the Brexit storm. That the effects of this decision do not surpass the short-term only depends on the determination, the when and how London negotiates its departure from the European Union.
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Del Canto Chambers’ Editorial Board