Qatar's economy will grow 3% as the easing of a three-year-old regional dispute will help trade, tourism, and logistics, Standard Chartered said, revising its previous 2.1% growth estimate.
Saudi Arabia and its Arab allies agreed on Tuesday to restore ties with Qatar.
"We see the lifting of restrictions on trade and travel on Qatar as adding impetus to the ongoing recovery in trade, tourism and logistics," Standard Chartered said in a note on Wednesday.
Another benefit could be a convergence in Qatar's onshore and offshore spot currency rates, as foreign liquidity stands to benefit from the lifting of the blockade, it said.
The bank's revised growth forecast is higher than the 2.2% forecast Qatar gave last month in its 2021 budget.
It said the United Arab Emirates lifting restrictions on trade and travel to Qatar could also help the UAE's trade recovery
"Regionally, the boost to consumer and investor sentiment and lower perceived geopolitical risk may contribute positively to economic outcomes, particularly ahead of significant events such as EXPO 2020, set to be hosted by Dubai in October 2021, and the 2022 FIFA World Cup in Doha," it said.
