Very much predicted. Nothing new. It was just a matter of time (months to a max of 2 years) from the official of AUH from it.
In absence of a business oriented solution and given the fact that these countries still reel on national flag carriers, I think this is good for both at first look.
GF will downsize/rationalise and WY will continue its growth. The worry here is the big cash gap among the different Gulf national flag carriers and this will not be conducive to cheaper prices for the consumer on the "domestic" routes, and on longer routes the smaller carriers will be bullied by a price (dumping) war steered by QR, EK and EY.
Matters will not even out until all Gulf carriers are privatised and have a REAL and TRULY "open skies policy".