Skip to main content

Does latest Gulf aid to Jordan come with strings?

Analysts wonder whether a Gulf aid package to help Jordan deal with its current economic crisis is in fact an attempt to pressure the kingdom into accepting the Israeli-Palestinian peace plan being developed by the United States.
RTX3Q50W.jpg
Read in 

Ambiguity surrounds the financial mechanisms adopted by Saudi Arabia, Kuwait and the United Arab Emirates at a June 11 summit in Mecca to help Jordan navigate through a crippling economic crisis. The kingdom's debt has risen to record highs this year, totaling 96% of the gross domestic product, or $39 billion, while the unemployment rate rose to 18.5%.

The five-year, $2.5 billion package includes a deposit at the Central Bank of Jordan along with guarantees from the World Bank for Jordan to borrow funds and finance development projects. Jordanian authorities have not, however, made public the amount of the deposit, the terms of the guarantees or the share of the package allocated to development projects.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.