Gulf states are looking at ways to help Jordan’s ailing economy after a decision to cut fuel subsidies sent energy prices soaring and led to street protests.
The country has struggled to reduce its budget deficit and secure a $2 billion loan from the IMF. It has also suffered gas disruptions from regular supplier Egypt following several sabotage attacks on a pipeline since last year’s Egyptian uprising.
UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan said on Monday Jordan was facing an economic deficit due to its dependence on heavy fuel imports. “We, in the UAE and the GCC, are studying ways to close or minimize this deficit,” Sheikh Abdullah said after talks with Jordan’s Foreign Minister Nasser Judeh. Talks to come up with a solution to Jordan’s funding gap could take some time, he said.
“The cut in the Egyptian gas to Jordan for two years is the main reason for these situations which made us depend on heavy fuel which cost us more than $4 billion,” Judeh said.