UNRWA looks to Gulf countries for long-term funding after US cuts
The UN aid agency for Palestinian refugees will work to sustain its relationship with four Gulf Arab countries that helped reduce a $446 million (Dh1.64 billion) deficit in its budget to just $21m despite the US withholding its contribution.
The UAE, Saudi Arabia, Kuwait and Qatar each contributed about $50m to the UN Relief and Works Agency after US President Donald Trump said he would withhold $300m from the organisation, ending years of support and intensifying the rift between his administration and the Palestinians.
The bulk of the remaining shortfall was met by donations from the European Union.
“This year has been an unprecedented success; we have essentially seen off a massive budget deficit that was thrust upon us by our largest donor taking away all our funding. It’s extraordinary to see the political and financial support we’ve received from other donors,” Chris Gunness, UNWRA chief spokesman, told The National.
“As far as the US is concerned, we have factored in zero dollars expected from them for next year,” Mr Gunness said.
“The Gulf countries aren’t filling in until America comes back; we want to maintain regular relations with them.”
UNRWA Commissioner General Pierre Krahenbuhl praised the resolve and creativity with which the agency and the international community addressed its “greatest financial predicament” and credited the agency’s partners who “rose to the occasion”.
“Today, I am very pleased to announce that, overall since January, donors contributed or pledged an additional $425 million, bringing our shortfall down to $21 million,” he said at a meeting in Jordan on Monday.
The bulk of the Kuwaiti contribution, $42.1m, was announced this week.
“The Middle East region is going through very severe and complicated circumstances,” said Kuwait’s Assistant Foreign Minister for International Organisations, Nasser Al Hain.
Mr Trump also cut $200m in aid to the Palestinians for projects in the West Bank and Gaza Strip.
The withdrawal of US funds meant UNRWA faced the prospect of halting its medical aid and closing schools in Palestine. But with the recent pledges it was able to maintain its operations and plans to continue providing its core services of education, health care and social welfare next year.
The agency now suffers from questions over its long-term stability, which it says it will remedy through new funding streams under development with the World Bank. The new fund-raising methods include a multi-donor trust fund and the establishment of an Islamic trust.
A UN source told The National that it was working through the World Bank to unlock sources of revenue which would allow UNRWA access to a convoluted financial funding system which the World Bank manages.
The source said the Islamic trust could be a source of incredible value for the organisation.
The withdrawal of US funds meant UNRWA faced the prospect of halting its medical aid and closing schools