Jordan plunges into economic crisis following Qatar blockade

Jordan’s economy has incurred losses worth $2 million since a closure of the Saudi land borders last week against the Jordanian exports heading to Qatar as a result of the Gulf diplomatic rift.

On 5 June, Saudi Arabia, the United Arab Emirates and Bahrain severed diplomatic ties with Qatar and began an economic blockade against the Gulf state. Jordan later joined the move by announcing a reduction in diplomatic representation with Qatar.

According to sources at Jordan’s Exporters and Producers Association for Fruits and Vegetables, Jordanian traders who have previously signed exporting contracts with Qatar, started exporting their products by air.

Jordanian shipments’ volume to the Gulf state has also dropped to 90 tons per day, down from 600 tons per day before the blockade.

Read: Jordan downgrades diplomatic relations with Qatar

According to Al Jazeera, Saudi Arabia has prevented the entry of 85 Jordanian trucks loaded with vegetables and fruits, and over 10 trucks which were loaded with livestock heading to Qatar, following the rift.

Qatar has begun pursuing alternative routes and agreeing on new deals with other countries to counter the blockade imposed by most of its neighbouring Arab states. Turkey was ready to help resolve the dispute, according to the Turkish Foreign Minister Mevlut Cavusoglu, while Iranian officials have offered to send food to Qatar by sea.

Moreover the Danish company, A.P. Moller-Maersk A/S, which owns the world’s biggest container line, has worked to bypass the transport ban imposed on Qatar by using alternative routes. Last Friday, it announced that it would begin container shipments to Qatar via Oman, avoiding trade restrictions imposed on the Gulf state by Arab countries.