UAE, Saudi Arabia and Kuwait agree $2.5bn aid package for Jordan

A $2.5 billion aid package for Jordan has been agreed by the UAE, Saudi Arabia and Kuwait at a summit in Makkah.

The agreement includes a direct payment to the Jordanian central bank, as well as the three nations acting as guarantors to the World Bank on Jordan's behalf.

Development projects in Jordan will be financed by the donor nations over the five-year deal.

Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, led the UAE delegation to the meeting. He later tweeted that he was "honoured to visit Mecca and pleased to meet the custodian of the Two Holy Mosques King Salman bin Abdulaziz and my brother King Abdullah II of Jordan", and that the meeting had served to "preserve stability and to strengthen the Arab and Islamic brotherhood".

Saudi Arabia hosted the meeting of Gulf Arab states to discuss ways to help Jordan after protests against IMF-backed tax reforms that led prime minister Hani Mulki to resign. New prime minister Omar Al Razzaz has said he will withdraw the original bill.

This leaves the government in a difficult position as it seeks to pass reforms tackling the ballooning government debt — now at 96 per cent of its Gross Domestic Product — but Mr Razzaz has said he will work on new tax legislation.

Jordanian foreign minister Ayman Safadi said on Sunday that his country appreciated the Saudi effort, and that they were looking "forward to the results of today's dialogue". He did not address the issue of Gulf aid.

The National