Font Size

- Aa +

Wed 6 Apr 2016 10:52 AM

Font Size

- Aa +

Bahrain, Kuwait sign $940m electricity deal

The agreement to develop electricity networks in the island kingdom is part of a GCC plan to support the country’s economy

Bahrain, Kuwait sign $940m electricity deal
Bahrain Finance Minister Sheikh Ahmed bin Mohammed Al Khalifa (YASSER AL-ZAYYAT/AFP/Getty Images)

Bahrain and Kuwait have signed a deal worth $940m to develop electricity networks in the island kingdom.

Finance Minister Sheikh Ahmed bin Mohammed Al Khalifa signed the deal with the Kuwait Fund for Arab Economic Development director Abdulawahab Al Bader, Gulf Daily News reported.

Al Bader was quoted as saying the agreement was part of a GCC support plan for Bahrain. The kingdom has been particularly hard hit by reduced revenues from low oil prices.

Bahrain’s deficit for this year and next year could rise by up to two thirds to BD5 billion ($13.2 billion), as the oil-rich kingdom continues to feel the strain of falling oil prices, it was reported.

Shoura Council Financial and Economic Affairs Committee Chairman Khalid Al Maskati said in January that the country’s budget deficit was forecast to increase by 66 percent this year.

It had been estimated at about BD3 billion ($8bn) based on an average oil price of $60 a barrel. Prices have averaged $30-40 a barrel for many months and are unlikely to rise much higher this year.

Bahrain has fewer reserves to fall back on compared to its richer neighbours, including Kuwait.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.