Gulf signs off $20bn aid deal for Oman, Bahrain

Friday, 11 March 2011 8:01 AM

Gulf Cooperation Council (GCC) ministers warned against foreign meddling in Gulf affairs

Gulf ministers pledged $20bn in financial aid for protest-hit states Oman and Bahrain in Riyadh on Thursday in a bid to rein in the unrest sweeping parts of the Arab world

The GCC council said it would allocate $10bn each to its poorer neighbouring states to be paid over 10 years; a move it hopes will quell the protests that have torn through Bahrain and Oman in recent weeks.

An aid committee representing the six states will meet in two weeks to discuss allocation of the funds.

The bloc also issued a statement warning that it would not allow any foreign meddling in Gulf affairs, as fears of unrest spreading to oil giant Saudi Arabia sends global oil prices soaring.

Bahrain and Oman have fought to allay unrest by rolling out new economic measures including improved wages and social benefits. But neither country has the massive oil wealth or economic power of neighbouring Gulf states Saudi Arabia, Kuwait, Qatar or the UAE.

Saudi Arabia has been quick to unveil economic benefits worth around $37bn in a bid to quash rumblings in its massive, young population.

The UAE, home of oil-rich Abu Dhabi, has pledged to spend $1.6bn on overhauling key infrastructure and housing in its poorer, northern emirates.

The combined economies of Bahrain and Oman are less than a fifth of that of Saudi Arabia and the aid package will offer a major boost to their budgets.

The funds will likely be used to create jobs and increase salaries for the young, who claim they lack opportunities and a say in government affairs.

Arab uprisings

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Posted by: salma Saturday, 12 March 2011 4:10 PM[UAE] - oman

If Oman is to take that amount, it means Oman has nothing or where is the money goes then in all this past years, and how come Oman has reached to this situation and why? Oman is a very rich country but how the money is utilized this is where the problem is,and it is so sad to see this is happening, with what Oman has if the concern people have utilized the budget they had under them to develop the country in a good and organized way with studies and all and see what people are in need then this would not have happened,the lake of control from the top was another reason for the others to play around and miss using of the budget for their own benefit, a simple example,what have they done with tourism a part from developing building projects for foreigner to buy,why didn't they do projects that the Omanis can use or develop the tourist areas with nice parks for children and families, upgrade the tourism areas around that are left undeveloped and other projects that benefits the country

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