ZCZC
BCN-14
BAHRAIN-ECONOMY-SUADI-UAE-KUWAIT
Bahrain unveils fiscal overhaul with $10bn from Gulf allies
MANAMA, Bahrain, Oct 5, 2018 (BSS/AFP) – Bahrain on Thursday announced a
fiscal overhaul aimed at balancing its budget by 2022, backed up by a $10-
billion support package from key Gulf allies.
The plan aims to save 800 million Bahraini dinars ($2.1 billion, 1.84
billion euros) annually, the government said, as the kingdom looks to curb
its debt after years of lower oil prices.
Neighbouring Saudi Arabia, the United Arab Emirates and Kuwait have agreed
a package worth $10 billion to “support the funding requirements”, a Bahraini
government statement said.
The reform programme includes cutting public expenditure and government
waste, voluntary retirements for government workers and “redirecting” state
subsidies.
The authorities said they are also looking to increase “non-oil revenues,
to drive economic growth, diversify government income streams and align non-
oil revenue with positive economic growth”.
Khalid al-Rumaihi, executive director of Bahrain’s Economic Development
Board, said the country requires $20 billion to balance its books and that
the government will provide half of that figure.
Bahrain’s budget deficit is expected to reach $3.5 billion in 2018, after
hitting about $5 billion in 2017.
Located between rival regional powers Saudi Arabia and Iran, Bahrain has
been ruled for more than two centuries by the Sunni Al-Khalifa dynasty.
Saudi Arabia has been a major supporter and in 2011 sent in forces along
with the UAE to help protect Bahrain’s rulers against protests by the Shiite
majority.
BSS/AFP/HR/0948