We are selling our entire investment position in Doha Bank on the back of the lingering geopolitical crisis in the gulf region. The crisis between Qatar and its gulf neighbours plus Egypt is now expected to last much longer than it was originally envisaged.
The crisis will have a negative impact on the economic performance of the Qatari economy, the extent of which is not yet clear, despite the Gulf nation’s immense wealth. This will most likely put pressure on consumer confidence, especially on non-Qatari residents. That will in turn have a negative impact on, especially, the retail component of local banks revenues. Doha Bank has a relatively large exposure to retail customers in Qatar and as such we expect the bank’s revenues to be negatively impacted by the crisis in the short and medium terms, hence our decision to sell our entire position in the bank.