Saudi Arabia to host assembly over Jordan economic disaster

18
9

Saudi Arabia will host a regional summit to insist relating to the continuing economic disaster in Jordan, where a proposed earnings tax rise recently brought about some of the supreme protests in years.

The assembly on Sunday in Mecca will be attended by Saudi King Salman, Jordan’s King Abdullah II, Kuwait’s Emir Sheikh Sabah Al Ahmad Al Sabah and the Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.

The leaders agreed to meet in characterize to “focus on ways to reduction Jordan to beat the economic disaster the nation is going thru,” Saudi Press Company said on Saturday, quoting an announcement from the Royal Court.

Jordan relies heavily on foreign encourage, and the $3.6bn assistance programme it receives every person year from the Gulf Corporation Council has no longer been renewed since final one year.

Daoud Kuttab, a journalist primarily primarily based in Jordan’s capital, Amman, said diverse the monetary encourage given to Jordan by Gulf Arab states “has dried up or long past on to explicit programmes” which attain no longer encourage the nation’s worth range. 

“There are varied faculties of conception on this disaster,” he defined. “One says that the Gulf nations aid programmes like building faculties and highways [in Jordan] rather than moral giving them money.

“Then there are some those that dispute that there is some more or much less a political connection to the stopping of the assert aid,” Kuttab knowledgeable Al Jazeera.

“The reality is Jordan is suffering ensuing from this absence of economic encourage,” he said, including that Amman considers Arab nations possess a accountability to possess it afloat, ensuing from its role in preserving Jerusalem’s Al-Aqsa Mosque, the 1/3-holiest web page in Islam.

Economic woes

Protests erupted in Jordan’s capital Amman and other provinces earlier within the month, calling for the authorities to scrap brand rises and a controversial International Monetary Fund-backed earnings tax reform invoice.

Jordan got a $723m loan from the IMF in 2016 and has put in space a 3-one year idea to command down debt ranges.

Austerity measures tied to the loan possess considered prices of in type necessities rise throughout the kingdom, creating discontent over the rising gas and bread fees. Electricity bills, meanwhile, rose by 5 cases in 2018 alone.

The demonstrations resulted within the resignation of High Minister Hani al-Mulki earlier this week, and highlighted what analysts known as the “structural” complications of the nation’s economic system, which suffers ensuing from regional instability, dependency on foreign encourage and the excessive cost of hosting 650,000 Syrians refugees.

Jordan’s national debt portions to $1.753bn, or up to ninety five % of the nation’s Negative Home Product (GDP).

Following al-Mulki’s resignation, the Jordanian King Abdullah appointed Training Minister Omar al-Razzaz as prime minister with the duty of forming a brand new authorities.

On Thursday, al-Razzaz announced that the controversial tax reform invoice will be withdrawn, however the disaster of balancing in type demands with the necessity to gash aid Jordan’s public debt stays unresolved.

Comments are closed.