Economics

The $26 Billion Reason Why Qatari Banks Are Enduring Embargo

  • Deposits rose since Saudi-led nations cut ties with Qatar
  • Government has injected billions into the banking system

Photographer: Gabriela Maj/Bloomberg

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Qatari banks have fared surprisingly well since four Arab nations started a boycott a year ago.

It’s thanks to the government and state-owned companies, which increased deposits by about $26 billion since May 2017, making up for a flight of capital after a Saudi-led group of nations cut commercial links with the country. That helped buoy an industry where foreign deposits accounted for about 25 percent.