Business | Economy
UAE gives Morocco $300m
The UAE agreed to give its energy-dependent north African ally Morocco $300 million to soften the blow to the kingdom's finances from soaring oil prices, Morocco's government said on Friday.
- Reuters
- Published: 00:11 May 25, 2008
Rabat: The UAE agreed to give its energy-dependent north African ally Morocco $300 million to soften the blow to the kingdom's finances from soaring oil prices, Morocco's government said on Friday.
The gift, to be paid into a special-purpose fund, adds to a $500 million grant announced earlier this month by another of Morocco's oil-rich Gulf allies, Saudi Arabia.
"A special fund will be created, paid for by donations from the two brother countries, the Kingdom of Saudi Arabia and the UAE, to a value of $500 million and $300 million respectively," Moroccan state news agency MAP said.
Morocco saw the value of its oil imports double to Dh8.13 billion ($1.11 billion) in the first quarter of the year versus the same period last year, official figures show.
Questions are being asked over the viability of subsidies paid by North African governments to shield their populations from soaring world energy and food prices.
Amalysts say Morocco may struggle to maintain the subsidies without allowing its budget deficit to exceed a 3.5 per cent target.
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