JEDDAH, 17 June — Saudi Arabia has agreed to provide new loans worth $156 million (SR585 million) to Yemen to establish electricity projects and to finance construction of technical and vocational training institutes in the country. The loan agreements were signed on the sidelines of a meeting of the Saudi-Yemeni Coordination Council on Saturday.
A final communique issued after the council meeting said the Saudi Fund for Development will give $50 million to establish a power plant in Maareb, $25 million to expand an electricity plant in Aden and $25 million to carry out expansion of another plant in the capital Sanaa.
The meeting also witnessed the signing of two more loan deals worth $56 million to finance the construction of technological institutes and vocational training centers and engineering works of road projects.
The meeting was co-chaired by Prince Sultan, second deputy premier and minister of defense and aviation, and Yemeni Prime Minister Abdul Qader Bajammal.
“The two sides will meet in Sanaa to discuss prospects of signing an agreement to avoid double taxation,” the communique said, adding that they will continue the talks to conclude an agreement on the protection and promotion of mutual investments.
“The talks on a free-trade zone will be within the framework of the Gulf Cooperation Council to increase trade exchange,” the communique said and expected that the two sides would soon reach an agreement on customs cooperation. The two sides have agreed to take all steps to prevent smuggling.
The council meeting welcomed the GCC summit decision allowing Yemen to join the GCC councils of health ministers and labor and social affairs ministers, the Arab Gulf Education Bureau and the Gulf Cup football tournament and said the move would strengthen GCC-Yemen relations.
Referring to the worsening situation in Palestine, the meeting applauded the brave resistance put up by the Palestinians against the Israeli occupation forces. The two sides condemned Israel’s massacres of Palestinian children, women and the elderly.
The meeting commended the efforts of Prince Abdullah, the regent, to bring about a just and comprehensive peace settlement in the Middle East as well as the outcome of his recent visit to the US.
Riyadh and Sanaa expressed their deep concern over the growing tension between India and Pakistan and urged the two belligerents to show maximum restraint, stop military escalation and settle their dispute through negotiations and peaceful means.
