3 Gulf Arab states pledge $2.5B to Jordan after protests

By ABDULLAH AL-SHIHRI, ASSOCIATED PRESS

Three Gulf Arab states pledged $2.5 billion in aid to Jordan on Monday in an effort to stabilize the U.S.-allied kingdom as it faces its worst protests in years over government austerity plans that include tax increases.

The money from Kuwait, Saudi Arabia and the United Arab Emirates will go toward a deposit in Jordan’s Central Bank, cover World Bank guarantees for the kingdom, offer budget support and finance other development projects.

The hope is the five-year aid package, which mirrors a similar aid package offered by Gulf states in 2011, will help Jordan come up with a new, more-palatable austerity plan to satisfy international lenders and its public.

The money came after an early morning meeting in Mecca attended by Jordan’s King Abdullah II, Saudi King Salman, Kuwait’s ruling emir Sheikh Sabah Al Ahmad Al Sabah and Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum, the UAE’s vice president and prime minister. Also on hand was Saudi Arabia’s assertive 32-year-old Crown Prince Mohammed bin Salman, though he sat off to the side of a circular table that hosted the leaders.

The statement quoted King Abdullah II as saying he hoped the aid would help his country overcome its fiscal crisis.

In December 2011, the six-nation Gulf Cooperation Council that is headquartered in Saudi Arabia pledged to give $2.5 billion in aid each to Jordan and Morocco, both of which had been invited to join the regional group that year.

The pledge from the GCC was to last five years. It expired last year and so far the six-member GCC has yet to offer any additional funding as the bloc remains split by a diplomatic crisis with Qatar. Jordan receives over $1 billion a year from the U.S., as well as aid from Europe and elsewhere.

Jordan’s protests have led to the firing of its prime minister. While peaceful, the protests threaten the stability of a kingdom strained by hosting those who fled the wars in Iraq and Syria. Jordan also is one of only two Arab nations to have full diplomatic relations with Israel and plays an instrumental role in the region and in Israeli-Palestinian peace efforts.

June 11, 2018 | 6 Comments »

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  1. @ Ted Belman:
    One does not know if the King will receive the money from the Arab pledges based on past history. However he will now get IMF loan money again plus better terms and will also get more money from USA loans.

    If there is regime change how will that change Jordan’s financial situation for the better? It would not be hard to see Jordan breaking up into areas run by different Tribes in some cases and Muslim Brotherhood in the other cases.

  3. no doubt the message from nutunyahoo ‘don’t worry we’ve got your back.’ in return for helping you we’ll keep more JEWS off the T.M. luv ya babe

  4. King Threatened in Jordan directly! Potential Serious Trouble

    Jordan Watch: 2nd Largest Jordanian Tribe Delivers Ultimatum to King Abdullah

    The son of the second-most-powerful tribe in Jordan has delivered an ultimatum: he is threatening to shake the country to the ground unless the government releases a prominent opposition figure who was arrested on Saturday.

    Continue Article at http://www.jewishpress.com/news/middle-east/jordan/jordan-watch-2nd-largest-jordanian-tribe-delivers-ultimatum-to-king-abdullah/2018/06/12/

  5. Interesting article in Foreign Policy on Jordan. I copied parts of it only.

    Jordan’s Protests Are a Ritual, Not a Revolution
    By trading geopolitical importance for aid and showing restraint when unrest erupts, the kingdom has managed to remain stable for decades.

    Mass protests rocked Jordan as citizens raged against International Monetary Fund-induced financial austerity. Rising living costs drove tens of thousands to the streets, compelling the king to sack the technocratic government. The new Cabinet promised to delay any more economic cutbacks. Declaring its sympathy with a public burdened with unemployment and poverty, the ruling monarchy scrambled to raise foreign aid in order to stave off further turmoil.

    It was April 1989.

    The current troubles began in 2016, when Gulf aid ended amid plummeting oil prices, the Syrian refugee crisis peaked, and the national debt approached the size of the GDP.

    In February, the United States signed a new five-year pledge for a record $6.375 billion in economic and military grants. Even as Jordanian-Saudi relations remain tense given disagreement over the Jerusalem issue and Syria, the Saudi government still called an emergency meeting with Jordan, Kuwait, and the United Arab Emirates to discuss renewed financial support. History is also repeating itself with the IMF, which quickly agreed to relax its austerity demands and disburse more funds. As always, outside donors will not let the kingdom self-destruct.

    https://foreignpolicy.com/2018/06/11/jordans-protests-are-a-ritual-not-a-revolution/

  6. I imagine this article is the sequel to “Is Jordan Burning?” by Eyal Zisser, a few days ago.

    Jordan’s King Abdullah apparently got the Saudis, Emiratis and Kuwaitis excited enough, that they belatedly coughed up money they have been promising for some time. No doubt, the Gulf royals also arm-twisted some concessions from the short king. After KSA’s similar extraction of “concessions” from the President of Lebanon a little while back, concessions the Lebanes pres. went back on as soon as he was back in Beirut, I’m afraid this isn’t a very hopeful sign.

    There are some big, news-worthy things brewing in the Middle East. They seem to be:

    1. Turkey’s increasingly aggressive moves in the region over the last year, most notably the establishment of military bases in Sudan, Somalia and Kuwait, the invasions of Afrin and Kurdistan, and a sharp increase of airspace violations against Greece.

    2. The near-collapse of ISIS, and the reordering it has caused among the coalition partners — especially, the renewed vigor with which Syria has been swatting dead its opposition, the fall of the Kurds from US attention and the election of Al-Badr in Iraq.

    3. President Trump’s casting his lot decisively with Israel, in moving the US embassy to Jerusalem, and finally,

    4. US abandonment of the Iran nuclear deal, coupled with a serious move to pull the North Korean nuclear carpet from under the Ayatollah’s feet, and of course,

    5. a booming Trump economy during an election year, coupled with a petering-out of the Democrat/ RINO false narrative against the President. If Trump pulls off the Singapore spectacle, this will almost certainly result in a Republican victory this Fall.

    Real war could break out with Israel at any time; but this has been the case for over 70 years. War with Iran could happen anytime — by accident, or with premeditation by either side (in ME terms, “same-o, same-o”). And Jordan? If King Abdullah falls, the pace of events could quicken — especially if Turkey interferes.

    I think I’ll lay down for a nap.