UAE Extends Economic Aid to Support Jordanian Economy
Abu Dhabi,04 Oct 2018
The United Arab Emirates (UAE) today signed an agreement with the Jordanian government to extend an economic aid package worth AED3 billion (US$833 million) to stimulate and support economic growth in Jordan. The allocation will be managed by Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid.
The AED3 billion economic aid package from the UAE falls within the framework of the Mecca Summit.
During the summit in June 2018, the UAE, Saudi Arabia and Kuwait agreed to support Jordan with a cash injection of US$2.5 billion to ensure that its economic development efforts are on track.
The bilateral agreement was signed by His Excellency Obaid bin Humaid Al Tayer, UAE Minister of State for Financial Affairs, and Her Excellency Dr Mary Kamel Kawar, Jordanian Minister of Planning and International Cooperation, in the presence of His Excellency Dr Omar Razzaz, Prime Minister of Jordan, His Excellency Matar Saif Sulaiman Al Shamsi, UAE Ambassador to Jordan, Adel Al Hosani, Director of Operations Department at ADFD, as well as senior officials from both countries.
The economic assistance package provided by the UAE is to be distributed as follows:
• A deposit of US$333.3 million in the Central Bank of Jordan to support the bank's fiscal and monetary policy and achieve economic stability in the country.
• US$250 million to support the Jordanian government budget, dispensed over five years (yearly increments of US$50 million).
• A US$50 million development loan to finance development projects in Jordan.
• US$200 million in guarantees to the World Bank to benefit the Jordanian government.
His Excellency Obaid bin Humaid Al Tayer said that the economic assistance package provided by the Government of the UAE to the Government of Jordan is based on the strong historic bonds of friendship that exist between the two countries and in line with the directives of the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai, and His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
His Excellency Al Tayer reiterated that via the economic aid package, the UAE will seek to stimulate the economic and financial landscape in Jordan and contribute to supporting the country’s development plans. More specifically, it will facilitate the Jordanian government in implementing its priority infrastructure projects in key sectors.
For her part, Her Excellency Dr Mary Kamel Kawar expressed her appreciation for the UAE’s sustained support and efforts in enabling Jordan to overcome its development challenges.
Her Excellency commended the fraternal relations that exist between the two countries and applauded the continued interest of the UAE President in providing her government with all forms of economic and developmental assistance in line with Jordan’s development priorities.
She also praised ADFD’s vital role in supporting the Jordanian government's socio-economic development efforts since 1974 through the provision of concessionary loans and management of government grants on behalf of the Abu Dhabi government.
Speaking on the occasion, His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, said: “The UAE's economic and development assistance package to Jordan through the Fund aims to bolster the overall development of Jordan. The financial allocation will aid the establishment of new development projects, boost infrastructure and eventually achieving sustainable development.”
Al Suwaidi added: “Honouring the time-tested ties of friendship between our countries, ADFD has to date enabled the financing of several major development projects in Jordan. In doing so, the Fund has helped Jordan achieve several key development milestones and ensured a positive impact on the lives of thousands of Jordanians.”
Notably, ADFD in 2012 managed the UAE government grant allocation of AED4.6 billion (US$1.25 billion) to the Gulf Development Fund, a five-year grant programme from the GCC member countries to finance development projects in line with the Jordanian government’s strategic goals.
Through government grants and concessionary loans, ADFD has financed 31 development projects amounting to AED5.6 billion in Jordan to date. These projects spanned several lifeline sectors, such as mining, water and irrigation, transport, housing, agriculture, energy, education and healthcare.