Shifting Sands: How Deep Is Qatar’s Fall on Capitol Hill?

Douglas Johnson
Emerging Markets Club
4 min readOct 15, 2023

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Hasan at Adobe Stock

In frustration over mounting challenges in the Middle East, Congress is channeling its energy into criticism of Qatar. The Gulf state is fast becoming an American whipping post for hosting Hamas leadership, not to mention its instinctual remark when Gazan forces breached security fences. The Qatari Ministry of Foreign Affairs declared, “Israel is solely responsible for the ongoing escalation due to its continuous violations of the rights of the Palestinian people.”

Texas Senator Ted Cruz, a former Republican presidential candidate, highlights the flavor-of-the-week in a statement to the digital publication Semafor: “Qatar is harboring mass murderers who just orchestrated a terrorist attack that killed at least two dozen Americans and was the largest single-day massacre of Jews since the Holocaust.”

The Washington Examiner, a conservative newspaper, echoes that view: “The Biden administration designated Qatar a major non-NATO ally in 2022. Congress should persuade the administration to take the opposite tack and designate Qatar as a state sponsor of terrorism, as well as pressure the Qatari government to extradite Hamas commanders to face justice.”

Making matters worse for Qatar in Washington, its assertive view on the Israel-Gaza war seems to have been commingled with its role as an intermediary in recent US-Iran hostage negotiations. Under the terms of the deal, the US allowed the transfer of $6 billion in Iranian funds from South Korea to Qatar, presumably to make those funds more accessible to Tehran for humanitarian reasons. American public opinion seems to think that the cross-border transaction meant Doha became the sole gatekeeper on authorizing use of the cash, with attendant implications for supporting Hamas. For the record, Washington still validates and approves each transaction.

Another challenge for Qatar is the view that Doha directly funded Hamas with official disbursements. That far-reaching statement is not quite accurate. The Gulf state indeed provided the Gazan government with public-sector aid, but with explicit approval of Tel Aviv. The relief was coordinated through the United Nations. A recent framework provided $30 million per month in humanitarian stipend for families, fuel for electricity, and public-sector wages. The amount was insufficient to meet demand.

Criticism of Qatar has traditionally been rare in Washington. As one of the world’s wealthiest nations, Qatar has a sizeable war chest to ensure full-throttle lobbying on Capitol Hill. Doha skillfully projects its soft power by supporting organizations like the Brookings Institution. The state also advocates for advanced studies at schools like Georgetown University. Qatar earned its status as a major non-NATO ally in part because of its role in hosting Al Udeid Air Base, a sprawling US outpost, and helping to wind down the Afghanistan war.

Qatar’s record in the US is imperfect, though. The Doha-backed news network Al Jazeera shut down its US operations in 2016. Despite deep pockets, the American division struggled to find its commercial footing amid the ongoing chaos of digital journalism. Persistent accusations of antisemitism in its editorial slant may have helped to upend an aggressive US business strategy.

Qatar is discovering that it can no longer hide behind its billions and billions. US politicians are looking for an angle in advance of 2024 elections; doubling as a foreign-policy hack is a convenient tactic. Certainly Qatar is a more manageable topic, than broad Middle East affairs. In the public square of American politics, it may be comparatively easy to blame Qatar — in whatever distant and detached way — for civilian atrocities in southern Israel. Those images are powerful, emotional determinants of political sentiment.

In a sense, US-Qatar relations are merely a collateral issue to bigger regional concerns, but they are important. The Biden administration approved a $1 billion sale of military equipment to Qatar a year ago to acknowledge that fact. Secretary of State Blinken has been quick to clarify that Qatar offers a backdoor to communicating with Iran and its para-government allies. That feature is highly relevant. US officials are just now depending on Qatar to negotiate the release of hostages held in Gaza in exchange for Palestinians held in Israel. Still, the role is not necessarily exclusive to the energy-rich nation. Oman, a Gulf pragmatist, is an accomplished understudy on these matters.

Capitol Hill can technically do very little to outflank Qatar. In America, foreign affairs are largely under the constitutional control of the executive branch. Congressional reach typically focuses on the deployment of development assistance and ad hoc emergency funding. Doha does not need such financial resources. An Achilles heel for Qatar may be the ongoing purchase of advanced military hardware in its desire to one-up its economic rivals Saudi Arabia and the United Arab Emirates.

Our Vantage Point: Qatar’s political voice and monetary influence can be uncomfortable for the United States. The small Gulf nation, however, plays a crucial diplomatic function. The uncertain outcome of unfolding regional events calls for a reliable on-the-ground ally.

Banner image shows Doha skyline.

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Douglas Johnson
Emerging Markets Club

Banker and strategist. I forge opportunities with high-risk assets worldwide. My workshop is at the crossroads of venture capital and emerging markets.