The UAE has signed a financial agreement with Bahrain, pledging AED12.5 bn (US$3.4 bn) in support for the Kingdom's Fiscal Balance Programme.
ABU DHABI, (Pakistan Point News - 05th Oct, 2018) The UAE has signed a financial agreement with Bahrain, pledging AED12.5 bn (US$3.4 bn) in support for the Kingdom's Fiscal Balance Programme.
Managed by the Abu Dhabi Fund for Development (ADFD), the move falls within the $10 bn Financial Support Agreement signed by the governments of the UAE, Kingdom of Bahrain, the Kingdom of Saudi Arabia, and the State of Kuwait, in coordination with the Arab Monetary Fund as an advisory body.
"The UAE's $3.4 bn contribution to the five-year agreement comes at the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces," said Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, who signed the agreement with Bahraini Finance Minister Sheikh Ahmed bin Mohammed Al Khalifa and Dr. Abdulrahman Al Hamidy, the Director-General and Chairman of the board of the Arab Monetary Fund.
"The support reflects the deeply rooted friendship ties binding the GCC sates and reaffirms the UAE wise leadership's determination to ensure financial and economic stability in the Kingdom. The agreement will help our brothers in Bahrain safeguard their gains and survive the financial headwinds while contributing to charting developmental plans that ensure social wellbeing and economic welfare for Bahraini citizens," Al Tayer added.
Sheikh Khalid bin Abdullah Al Khailfa, Deputy Prime Minister and Chairman of Ministerial Committee for Financial Affairs and Expenditure Control of Bahrain, expressed sincere thanks to the UAE, Saudi Arabia, and Kuwait for their support for Bahrain across various domains.
The reform allows for a swift and achievable consolidation programme that balances fiscal sustainability with continued economic growth and prosperity, he said.
For his part, Mohammed Al Suwaidi, ADFD Director-General, said the UAE's contribution to the Bahraini reform programme will enable the Kingdom's government to spur the economy, and establish an investment - conducive environment.
"Over five years, the programme will enable the Bahraini government to strike an equilibrium between government’s expenditure and revenues in a way that will reflect positively on ensuring progress and prosperity across all economic and social aspects of life," he added, re-affirming the strong relations between ADFD and the Kingdom of Bahrain since 1974, with the Fund having effectively contributed to several strategic and infrastructure projects aimed at ensuring sustainable development in the Kingdom.
