Jordan and the UAE sign framework on $1.25 billion

Published January 23rd, 2013 - 05:52 GMT
Jordan and the UAE signed an agreement regulating a loan, which is part of a $5 billion GCC financial aid package
Jordan and the UAE signed an agreement regulating a loan, which is part of a $5 billion GCC financial aid package

Jordan and the United Arab Emirates (UAE) on Tuesday signed a framework memo to regulate a $1.25 billion grant to be extended by the Gulf state over five years.

The funds are the UAE’s contribution to a $5 billion grant for Jordan that was endorsed by the Gulf Cooperation Council in 2011.

The $1.25 billion will be extended by the Abu Dhabi Fund for Development (ADFD), representing the government of the UAE.

Planning Minister Jafar Hassan, who signed the accord with ADFD acting director general Mohammed Saif Al Suwaidi, indicated that the UAE deposited $1 billion at the Central Bank of Jordan last week to finance development projects both countries agreed on over five years.

Hassan said the grant will enable Jordan to implement a number of capital projects listed in the state budget that seek to stimulate the Kingdom’s economy and attract investments in key strategic sectors.

Jordan and the UAE have initially agreed on all proposed projects to be financed by the grant, the minister told reporters after signing the agreement, noting that priority projects will be in the sectors of energy, transport, education and health.

Suwaidi said that the grant will focus on infrastructure projects to boost Jordan’s economic growth as well as on housing schemes.

“We want to offer support to schemes that would stimulate the economy and enhance the living standards of Jordanians,” Suwaidi added, saying that the UAE is keen to play a role in the development of Jordan.

Between 1974 and 2012, ADFD funded several projects in Jordan worth $141 million, according to the figures released by the fund.


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