Gulf talks today to aid Jordan

SAUDI ARABIA, UAE AND KUWAIT TO HELP CASH-STRAPPED COUNTRY TACKLE CRISIS

Saudi Arabia, the UAE, Kuwait and Jordan will meet today to discuss ways to support Amman as it looks to tackle an economic crisis in the wake of protests.

Riyadh said in a statement yesterday that King Salman Bin Abdul Aziz called the rulers of the three other nations to set up a meeting in Makkah after demonstrations rocked Jordan over a proposed tax hike.

In Amman, King Abdullah II and visiting EU foreign policy chief Federica Mogherini

discussed Jordan’s economic challenges. The royal court said that the king and Mogherini reviewed reforms and economic programmes meant to address the crisis.

Cash-strapped Jordan, a close US ally that relies heavily on donors, is struggling to curb its debt after securing a $723-million loan from the International Monetary Fund in 2016. Austerity measures tied to the loan have seen prices of basic necessities rise across the kingdom — culminating in a week of angry protests over tax proposals that forced prime minister Hani Mulki to resign.

The authorities on Thursday announced they were withdrawing the unpopular legislation, but still face a mammoth task to balance popular demands with the need to reduce the public debt burden.

Saudi Arabia and the United States are two of the major donors providing vital economic assistance to Jordan. — Agencies

Jordan’s authorities may have shelved a proposed income tax hike after a week of protests - but they still face the tricky task of balancing popular demands with the need to fix the economy. Today, Saudi Arabia, the UAE and Kuwait will hold a conference to discuss support for Jordan after protests led to the removal of the prime minister.

Leaders from the three countries and Jordan will meet today in Makkah to discuss “ways of supporting Jordan in order to exit the financial crisis,” the official Saudi Press Agency reported, citing a statement by the royal court.

Defusing protests

The government’s planned reforms were seen as exasperating poverty in a country where unemployment is at its highest in 20 years.

Incoming Prime Minister Omar Razzaz defused some of the largest protests the country has seen in years after saying he will withdraw the tax bill for review.

Saudi Arabia and the UAE could ease the pressure to rapidly proceed with reform measures the IMF is pushing by ponying up $500 million (Dh1.83 billion) this year, said Ryan Bohl, Middle East and North Africa analyst at Texasbased Stratfor consultancy.