Gulf Arab States to Provide $20 Billion to Bahrain, Oman
After Protests
By Vivian Salama, Alaa Shahine and
Glen Carey - Mar 10, 2011 7:53 PM GMT+0200
Gulf
states plan to provide Oman and Bahrain, which have faced popular
protest movements, with $10 billion each over a decade.
U.A.E. Foreign Minister Sheikh
Abdullah Bin Zayed Al Nahyan said the package showed Gulf support for
the countries. The aid would be aimed at developing infrastructure and
housing, Bahraini Foreign Minister Sheikh Khaled bin Ahmed Al-Khalifa
said on his Twitter account. Ministers from the six-nation Gulf
Cooperation Council met today in Riyadh, Saudi Arabia.
Protesters in Oman and Bahrain are
calling for free elections, more housing and jobs, echoing popular
movements that have swept the region in the past two months and unseated
longtime rulers in Tunisia and Egypt. At least two people have been
killed in clashes between demonstrators and security forces in the Omani
city of Sohar, while in Bahrain, seven people have been killed in
demonstrations.
“The
regimes are capable and fully prepared to use ammunition on their own
people and I am not sure that the aid packages can deflect from that,”
said Christopher Davidson, who teaches politics at Durham University in
the U.K.
The unrest has
deterred investors and sent the Bloomberg GCC 200 Index (BGCC200) of
Gulf shares down 6.6 percent so far this year, while oil rose to a 2
1/2-year high as protests in Libya, holder of Africa’s largest oil
reserves, escalated into civil war.
Reports that the GCC was preparing an aid package helped the
region’s stocks pare losses today, with Oman’s MSM30 Index rising 0.5
percent and Bahrain’s BB All Share Index adding 0.1 percent.
Fifth Fleet
The protests in Bahrain, home to the U.S. Navy’s Fifth Fleet,
began on Feb. 14 and marked the spread of the unrest to the Persian
Gulf, where most Middle Eastern oil is produced.
Shiite Muslims, who represent as much as 70 percent of
Bahrain’s population, say they face discrimination over jobs and housing
from the ruling Al Khalifa family, who are Sunnis, and their
supporters. Omanis are demanding higher wages and are pressing Sultan
Qaboos Bin Said to name a prime minister and give more power to the
consultative council.
In
both countries, hereditary rulers have taken measures aimed at placating
the protesters. Bahrain yesterday announced plans to spend $6.6 billion
on new homes to allay a shortage, and Crown Prince Salman bin Hamad Al
Khalifa has invited the Shiite-led opposition to enter a “national
dialogue.” The largest opposition group, al-Wefaq, said it wants
“significant steps” from the government before agreeing to negotiate.
Increasing Employment
Oman’s Sultan Qaboos told the
government to hire 50,000 Omanis and pay 150 rials ($390) a month to
job-seekers.
Saudi Arabia,
the largest GCC economy, has also taken steps to avert protests
spreading to the kingdom, pledging more than $30 billion of spending to
build homes, create jobs and increase social security payments. Saudi
opposition supporters have called for a “Day of Rage” tomorrow.
In the United Arab Emirates, a
petition has been circulated by academics and activists calling for
elections to the legislative advisory body, the Federal National
Council.
The GCC is
comprised of Saudi Arabia, Kuwait, the U.A.E., Oman, Qatar and Bahrain.
To contact the reporter on this
story: Vivian Salama in Abu Dhabi at vsalama@bloomberg.net Alaa Shahine
in Dubai at asalha@bloomberg.net
To contact the editor responsible for this story: Andrew J.
Barden at barden@bloomberg.net.
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