Abu Dhabi: The UAE has signed a financial cooperation agreement worth Dh12.5 billion with the government of Bahrain to support the country’s financial stability and stimulate economic growth.
The contribution will be managed by the Abu Dhabi Fund for Development (ADFD).
The Dh12.5 billion from the UAE is within the framework of the Bahrain government’s approved fiscal balance programme, which aims to achieve a balance between government revenues and expenditure by 2022.
The UAE’s commitment, along with those of Saudi Arabia and Kuwait, is worth about $10.23 billion, in equal shares disbursed over five years (2018-22).
The Arab Monetary Fund (AMF) has been designated as the programme consultant.
The agreement was signed by Obaid Humaid Al Tayer, Minister of State for Financial Affairs; Shaikh Ahmad Bin Mohammad Al Khalifa, Bahrain’s Minister of Finance, and Dr Abdul Rahman Bin Abdullah Al Humaidi, director-general and chairman of AMF.
Al Tayer said that the UAE Government’s contribution to the fiscal balance programme is based on the strong historic bonds of friendship that exist between the UAE and Bahrain and is in line with the directives of
the UAE’s leadership.
He reiterated that the UAE is keen to support the people of Bahrain and help them overcome financial challenges through implementing sustainable development plans to achieve long-term prosperity.
Al Khalifa thanked the UAE, Saudi Arabia and Kuwait for their support.
He presented details of the financial balance programme, explaining the initiatives that aim to reduce the government’s operating expenses and enhance the efficiency of government spending.
Mohammad Saif Al Suwaidi, director-general of ADFD, said: “The Dh12.5 billion contribution from the UAE, managed by ADFD, will support the Bahraini government in realising its vision for development and progress, in addition to ensuring a balance between revenues and expenditure in the next five years.”
He added, “We are proud of the strong synergies ADFD shares with the Bahraini government. The Fund’s contribution to the development of Bahrain dates back to 1974, when it managed a UAE Government allocation of Dh10.5 billion towards the implementation of 26 development projects in Bahrain.”
Notably, ADFD has also coordinated the 2012 UAE Government grant allocation of Dh9.19 billion as part of the Gulf Cooperation Council (GCC) development programme for Bahrain.