Qatar allows loan payment deferrals. Gulf central banks scramble as a five-week war disrupts regional stability.

The Big Picture The Iran conflict has entered its **fifth week**. Gulf financial markets, long considered bastions of stability, now face unexpected pressure. Qatar's central bank response — payment deferrals, lower reserve requirements, and unlimited repo liquidity — will ripple through property markets.

Payment deferrals aren't a magic solution. They're an official acknowledgment that borrowers — including property owners and developers — might struggle. In a region where real estate represents a significant GDP portion, these measures carry weight.

“Deferrals are a temporary patch, not a structural fix.”

Why It Matters Qatar and UAE real estate sectors run on bank financing. Lower reserve requirements and unlimited repo liquidity aim to prevent a credit crunch. The real risk lies in bank balance sheets.

If too many borrowers seek deferrals, banks face cash flow issues. This could lead to reduced new mortgage lending precisely when markets need it most. Interest rates might rise despite central bank liquidity.

Developers of multi-billion dollar projects in Doha and Dubai watch closely. Many rely on bridge financing that could now dry up. Deferrals help existing buyers but don't solve new construction funding.

Commercial property faces different pressures. Office vacancies were already rising before the conflict. Now, with regional uncertainty, corporate expansion plans may stall. REITs with Gulf exposure should prepare for valuation adjustments.

The Bottom Line Watch how banks implement these deferrals. If requests exceed 15% of mortgage portfolios, expect tighter credit conditions. Investors in Gulf REITs should monitor dividend announcements — any cuts will signal real market stress.