The Iraqi invasion of Kuwait was a bitter blow for Qatar, which was still in the process of developing a postwar atmosphere of stability and economic confidence. Most traumatic was Qatar’s recognition that it, too, could be a victim of Iraq’s ambitions. Qatar expressed its gratitude for Syrian, as well as Egyptian and Moroccan, participation in the anti-Iraqi coalition by writing off their debts. In fact, Qatar had not abandoned its traditional support for the Palestinian cause. The Kuwait crisis also had positive effects for Qatar. Qatari-USSR relations were solidified with the signing in Doha of a wide-ranging bilateral economic agreement in late 1990, the culmination of ongoing contacts since 1989. The Kuwait crisis dealt a heavy blow to Qatar’s economy. Qatar had still been nurturing postwar economic progress, with the removal of the old guard in the July 1989 cabinet reshuffle just beginning to bear fruit in the form of more dynamic economic policy and several modest reform programs.