Skip to content
Subscriber Only

Bahrain Makes Progress in Aid Talks With Gulf Allies

  • Discussions are on a multi-year program to help fix finances
  • Bahrain is struggling with rising public debt, low reserves
Franklin Templeton Sheds Bahrain Debt, Warns of Economic Crisis

Photographer: Phil Weymouth/Bloomberg

Updated on

Bahrain and its Gulf Arab allies are said to be making progress on an aid program to help the island-kingdom repair its finances and avoid a devaluation that could roil neighboring markets.

Officials from Bahrain, Saudi Arabia, the United Arab Emirates and Kuwait are discussing a multi-year program that would involve spending cuts and measures to increase non-oil revenue, including the introduction of a value-added tax, according to five people with knowledge of the matter. They asked not to be identified because the details aren’t public.