The Middle Eastern outfit have signed the winger on a three-year deal for a fee of £25m, and handed him a lucrative contract.
Jota was crucial for the Hoops in their domestic treble-winning campaign last term, scoring 13 goals and providing eleven assists in 37 games before joining the Saudi Pro League champions.
Cathro insists that the Portuguese has performed well at Celtic in recent seasons and he believes that he has the potential to do even better.
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The Al Ittihad assistant believes it is natural for Jota to attract interest from clubs across the world and he feels that the winger is moving from one intense environment to another.
Cathro told the Scottish Sun: “He’s obviously a player who has performed well at Celtic in the last few seasons.
“He’s young, there is a lot of potential there, so there is a big upside.
“I think it would have been natural for there to be interest in him from all over the world given the stage he’s at in his career.
“He’s already delivered in an intense environment and he’s now going to be going into another intense environment.”
Jota will be managed by his countryman Nuno Espirito Santo at his new club, and he will strive to replicate and improve on his Celtic performances.
The winger joins former Real Madrid forward Karim Benzema and former Chelsea midfielder N’Golo Kante at Al Ittihad.