AKIPRESS.COM - A diplomatic split between Qatar and its Gulf Arab neighbors may disrupt billions of dollars of investment in the region and slow efforts to make economies more efficient through trade and transport reforms, Trade Arabia reported today.

Qatar's vast natural gas wealth means the country with a population of around 2.1 million could probably continue operating indefinitely despite the displeasure of Saudi Arabia, the UAE and Bahrain.

But its growth may slow if its trade and investment ties with the big Gulf economies are scaled back. All the economies in the region could suffer in the long term if diplomatic tensions stall projects such as construction of a Gulf railway network and development of a free-trade area.

That could also deprive foreign companies of billions of dollars worth of construction projects.

Saudi Arabia, the UAE and Bahrain said on Wednesday they were withdrawing their ambassadors from Qatar because Doha had failed to implement an agreement among Gulf Arab countries not to interfere in each others' internal affairs.

The Gulf countries' decision to withdraw their ambassadors was unprecedented in the three-decade history of the six-nation Gulf Cooperation Council (GCC), and stemmed from deep resentment among Qatar's neighbors about policies such as Doha's support of Islamist movement the Muslim Brotherhood.

If tensions eventually escalate into economic sanctions, the single biggest point of vulnerability for the Gulf would probably be the Dolphin Energy pipeline carrying around 2 billion cubic meters of gas per day from Qatar to the UAE and Oman.