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      Qatar companies get grant to offset higher shipping costs

      The state-owned Qatar Development Bank (QDB) is supporting local manufacturers with a non-repayable grant to cover raw material shipping costs, which have soared due to the US-Iran war.

      The bank has increased its Logistics Support Fund to QAR400 million ($110 million) as part of its support package for Qatar’s industrial sector.

      The fund covers up to 80 percent of the increase in raw material shipping costs from pre-conflict levels for local manufacturers across all sectors, QDB said in a social media post.

      The announcement comes a day after Emir Sheikh Tamim bin Hamad Al-Thani said Qatar’s total revenue dropped 42 percent while total spending declined 14 percent in the first half of 2026 due to the regional war.

      Qatar has been among the mediators seeking a diplomatic end to the conflict and helped secure a temporary peace plan in June. However, the conflict has since widened to include fighting between Saudi Arabia and the Iran-backed Houthi militia.

      CEO Abdulrahman Al-Sowaidi said the fund was expanded in response to private-sector feedback to help national manufacturers maintain production and offset rising costs for imported raw materials.

      QDB has approved 436 applications under the fund, he said.

      Local manufacturers can apply for the non-repayable grant more than once.

      Last month, AGBI reported that supertanker freight rates from the Gulf to China now exceed $30 a barrel – nearly a third of the oil’s price – as the risk of crossing the Strait of Hormuz drives up costs.

      In addition, war risk cover was adding up to $8 to the cost of a barrel of oil because of the Iran war, according to David Osler, law and insurance editor at shipping news provider Lloyd’s List.

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      Source: AGBI
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