The economic impact of Saudi and UAE-led sanctions on Qatar has so far been limited. But should the dispute draw on, or intensify, the economic fallout could be sizeable for both Doha and the region more broadly.

In the space of little over a fortnight, the small but affluent state of Qatar has been thrust into the epicenter of what has quickly become a major crisis on the world stage.

On 5 June, Saudi Arabia, the UAE, Bahrain, Egypt and a few other allied countries imposed both diplomatic...