Arab sanctions on Qatar not affecting Cyprus for now (Updated)

By George Psyllides and Stelios Orphanides

The decision of four Arab nations to cut ties with Qatar citing its alleged links to terrorism is not directly affecting the operations of Cypriot companies in the Gulf state yet, but this could change, the foreign ministry said on Tuesday.

But business sources are not ruling out a further escalation of the diplomatic spat that erupted on Monday after Egypt, Saudi Arabia, the United Arab Emirates, Bahrain, and Maldives, cut diplomatic ties with Qatar and transport links including access of their air space to Qatari aircraft. The step prompted Qatari consumers to start stockpiling food and supplies, Reuters reported.

“We are continuing work on our projects as usual,” said Mary Andreou, human resource management at J&P (Overseas), a unit of the construction giant Joannou and Paraskevaides Group which has huge business interest in Qatar.

“We want to believe that the situation will normalise soon. For the time being, our workers there are comfortable with respect to supplies and there is no cause for concern.”

J&P (Overseas) is involved in the construction of the Qatar Foundation Stadium that will host games during the 2022 FIFA World Cup, together with J&P Qatar WLL, J&P Avax SA and Conspel Qatar WLL,

“If the situation changes, we will take measures,” Andreou said after talking to the country manager in Qatar.

J&P was also involved in various past construction projects in Qatar such as roads, hospitals, housing complexes, hotels and construction of the artificial Island of Pearls.

“As a country we have close ties with countries in the area and we hope there is no deterioration,” said Marios Tsiakkis, secretary general of the Nicosia-based Cyprus Chamber of Commerce and Industry. “It is still a major upset for the area and we, the parties involved, should seek via diplomacy to normalise relations.”

Tsiakkis did not rule out an escalation to a situation in which companies operating in the jurisdiction of Qatar may be forced to choose sides.

“We know the area well,” he said.

Permanent secretary of the foreign affairs ministry, Alexandros Zenon, said that according to the latest census, there were 624 Cypriots in Qatar.

He added that the embassy of Cyprus to Qatar said that Cypriots and other foreign nationals are in no danger.

“This assessment is the result of consultations with embassies of other EU member-states,” Zenon told state broadcaster CyBC.

He added that due to the embargo by neighbouring countries, Qatar could face a foodstuff shortage, but that the country gave reassurances to foreign ambassadors that it has enough foodstuff and basic items for six months. The government of Iran, he said, also offered to supply Qatar if necessary, with foodstuff and first need items.

“We were told by directors of Cypriot companies that it is possible they would encounter problems importing construction materials to Qatar as they arrive by land through the United Arab Emirates and Saudi Arabia,” he said.

Egypt, Saudi Arabia, and the United Arab Emirates have closed their airspace for all flights by aircraft registered in Qatar.

Bahrain is restricting overflight access to Qatari aircraft.

Flight tracking group Flightradar24 said many of Qatar Airways’ flights to southern Europe and Africa passed through Saudi Arabia. Flights to Europe will most likely be rerouted through Iran and Turkey, it said.

Qatar Airways’ four flights to and from Larnaca airport remained unaffected on Tuesday but their times were expected to change on Wednesday.

Airport sources said the arrival of the 10.55am flight was pushed back to 11.45am while the evening flight was expected to arrive at 7.50pm instead of 7pm.

Departures were also affected — instead of 1.30pm, the day flight was brought forward to 12.45pm. as was the 9.35pm flight, which was now scheduled to leave at 8.50pm.

The foreign ministry advised Cypriot nationals to directly contact airlines or tour operators for further information. They may also contact the Cypriot diplomatic representation in Doha directly at 00 974 44 93 43 90 or 00 974 44 93 43 91.