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Bahrain has signed a US$940mn deal with Kuwait to develop electricity networks in the country, according to reports
Bahrain’s finance minister Sheikh Ahmed bin Mohammed Al Khalifa signed the deal with the Kuwait Fund for Arab Economic Development director Abdulawahab Al Bader.
Al Bader was quoted as saying the agreement was part of a GCC support plan for Bahrain in the wake of low oil prices.
The country’s deficit for this year and next could rise by up to more than half to US$13.2bn — as the country continues to feel the strain of the oil price slump, it was reported.
Shoura Council Financial and Economic Affairs Committee chairman Khalid Al Maskati said in January that Bahrain’s budget deficit was forecast to increase by around 66 per cent in 2016.
It had been estimated at about US$8bn based on an average oil price of US$60 a barrel. Prices have averaged US$30 — 40 per barrel for many months. It is estimated that Bahrain has fewer reserves to fall back on compared to its richer neighbours, including Kuwait.