The UAE has signed a AED3bn ($833m) economic aid agreement with the Jordanian government.
The financial support package will be managed by the Abu Dhabi Fund for Development (ADFD) and includes:
- A deposit of $333.3m in the Central Bank of Jordan to support the bank's fiscal and monetary policy, and help stabilise the country's economy
- Five yearly payments of $50m each to support the government's budget
- A $50m development loan to finance development projects in Jordan
- $200m in guarantees to the World Bank to benefit the Jordanian government
The UAE's AED3bn in economic aid is part of the economic stimulus package agreed at the Mecca Summit in June this year. The UAE, Saudi Arabia and Kuwait agreed to support Jordan with a cash injection of $2.5bn to ensure its economic development efforts stay on track.
Before the summit, there were mass protests in Amman to oppose planned tax increases and cuts in subsidies on fuel and electricity. Among the controversial proposals is a draft income tax law that would raise income tax by at least 5 per cent, and company taxes by between 20 and 40 per cent.
The ADFD says it has financed 31 development projects, amounting to AED5.6bn, in Jordan to date through government grants and concessionary loans. The projects cover a range of sectors including mining, water and irrigation, transport, housing, agriculture, energy, education and healthcare.
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