Gulf economies face long-term hit from Iran conflict

Gulf economies face long-term hit from Iran conflictJust nowShareSaveAdd as preferred on GoogleSameer HashmiBusiness reporter, DubaiAFP via Getty ImagesIran has attacked Gulf states in retaliation for Israeli and US bombing on its countryIn the early 1990s, Qatar was grappling with a period of economic strain - high debt levels and weak state revenues were weighing heavily on its finances. To try to transform its fortunes the small Gulf state made a decisive bet on natural gas.It would develop its vast offshore gas reserves, and – crucially – super chill the gas into LNG (liquified natural gas) for transportation by ship to countries around the world.That decision led to the creation of Ras Laffan - an industrial city on the coast, about an hour's drive from the capital, Doha. Over the next three decades, it would become the world's largest LNG export centre, transforming Qatar into one of the richest countries globally.But on 18 March that success story was shaken.United Arab Emirates to quit oil cartel OpecIn five charts: How UAE's exit could affect Opec's influence over the oil priceAn Iranian ballistic missile struck the main Ras Laffan gas complex, knocking out an estimated 17% of global LNG supply. The damage will cost state-owned QatarEnergy a predicted $20bn (£15bn) in lost annual revenues, while disrupting supplies to key markets in Asia, including China. Repairs could take between three to five years."The attack was a shock - both to global energy markets, but also to the Gulf states themselves, which are now feeling very vulnerable," says Karen Young, a senior research scholar at the Center on Global Energy Policy at Columbia University.QatarEnergy's chief executive Saad Al Kaabi said the scale of the damage had "set the region back by 10 to 20 years".The Iranian strike came after Israel bombed Iran's South Pars gas field, which borders Qatar's North Dome field. Together they form the world's lar...