Saudi king visits Bahrain in support of its economy

Saudi Arabia’s King Salman Bin Abdulaziz yesterday arrived in the Bahraini capital of Manama in a visit that was said to be aimed at “saving the Gulf state’s economy”.

The hours-long visit comes a day after Manama‘s formalisation of an agreement that was signed with Kuwait last year for financial aid to support the Bahraini economy as part of an assistance package pledged by other Gulf neighbours.

According to official Saudi Press Agency (SPA), Salman met with Bahraini King Hamad Bin Isa Al Khalifa, as well as the country’s crown prince and prime minister. The monarchs were reported to have discussed “bilateral relations between the two countries, the recent regional developments, and prospects for cooperation and coordination in various fields.”

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In October, Kuwait, Saudi Arabia and the United Arab Emirates (UAE) together pledged a $10 billion aid package to Bahrain to rescue the Gulf state from what was described at the time as “a potential debt crisis.”

Manama recently announced it was expecting to receive up to $2 billion by the end of 2018 as part of the package which it said was planned to be disbursed over five years.

Bahrain’s financial resources have been hit hard by the fall in oil prices in 2014. The Arab state has also been struggling to cut government spending while avoiding public anger over austerity measures.