Financial Times reports: Qatar paid up to $1bn to release members of the Gulf state’s royal family who were kidnapped in Iraq while on a hunting trip, according to people involved in the hostage deal — one of the triggers behind Gulf states’ dramatic decision to cut ties with Doha.

Commanders of militant groups and government officials in the region told the Financial Times that Doha spent the money in a transaction that secured the release of 26 members of a Qatari falconry party in southern Iraq and about 50 militants captured by jihadis in Syria. By their telling, Qatar paid off two of the most frequently blacklisted forces of the Middle East in one fell swoop: an al-Qaeda affiliate fighting in Syria and Iranian security officials.

The deal, which was concluded in April, heightened concerns among Qatar’s neighbours about the small gas-rich state’s role in a region plagued by conflict and bitter rivalries. And on Monday, Saudi Arabia, Egypt, the United Arab Emirates and Bahrain took the extraordinary step of cutting off diplomatic ties and transport links to Qatar, alleging the country fuels extremism and terrorism.

“The ransom payments are the straw that broke the camel’s back,” said one Gulf observer.

Doha denies it backs terrorist groups and dismissed the blockade by its neighbours as “founded on allegations that have no basis in fact”. It said it could not immediately respond to a request for comment on the hostage deal. But a person close to the Qatari government acknowledged that “payments” were made. The person was unaware of the amounts or where the money went. [Continue reading…]