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FINANCIAL NEWS
Bahrain to receive USD2.5b UAE grant
19 Feb 2013
(MENAFN) Bahrain is expected to receive a USD2.5 billion grant from the UAE to develop several projects in the Gulf tiny Kingdom, reported Arabian Business citing state news agency BNA.
According to BNA, the amount is part of a USD10 billion regional funding program pledged by richer Gulf Arab countries in March 2011 to both Bahrain and Oman, following the onset of the political turmoil, in order to lessen tensions and support economic development.
The grant from the UAE will be distributed annually over the coming 10 years, BNA said.
Bahrain, the only country among GCC states facing a fiscal deficit this year, inked a deal in December with the Saudi Fund for Development for a USD448 million grant to fund different projects.
The country, which relies on crude from an oilfield shared with Saudi Arabia for nearly 70 percent of its budget revenue, needs oil prices to average USD122 per barrel in 2013 to be able to balance its budget.
It is worth noting that the UAE grant will be used to finance projects in housing, electricity, water, infrastructure and social services.
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