A traditional wooden fishing Dhow is seen in port near modern glass and steel buildings on the Doha skyline, Qatar February 9, 2010. Photo: Reuters 

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Qatar dismissed allegations of support for militancy on Friday after four Arab states, which cut ties with Qatar earlier this week, put the emirate on a "terror finance watch list".

"The recent joint statement issued by the Kingdom of Saudi Arabia, Bahrain, Egypt and the UAE regarding a 'terror finance watch list' once again reinforces baseless allegations that hold no foundation in fact," a Qatari government statement said.

"Our position on countering terrorism is stronger than many of the signatories of the joint statement - a fact that has been conveniently ignored by the authors."