Qatari government is ordering measures to boost the private sector of the country’s economy as expansion is being hampered by the ongoing sanctions from Saudi Arabia and its regional allies.

It came after Saudi Arabia, in early June, accused Qatar of sponsoring terrorism and having strong ties with Iran, which Riyadh and its allies see as a threat.

Saudi Arabia, the United Arab Emirates (UAE) and Bahrain severed relations with Qatar on 5 June. They also asked Qataris citizens to leave their territory and banned their own citizens from travelling to Qatar.

Since the blockade imposed by the Saudi-led bloc went into force, the Qatari economy has slowed.

However, it is yet unclear whether the slowdown is caused by the sanctions on Qatari foreign trade, or its economy is slowing due to structural or cyclical downward factors.

“Over the medium-term, we expect the Qatari economy will prove resilient. Domestic industries will benefit from increased self-reliance, while the government’s plans to expand liquefied natural gas (LNG) production and a renewed drive to attract international tourists will drive future growth,” analysts at Qatar National Bank (QNB Group) said.

The Qatari government has decided to slash rents paid by private sector companies in Qatar’s logistics area by 50 percent for the next year and also 2019.