As part of a five-year package to aid Morocco’s economy, four Gulf countries – Qatar, Saudi Arabia, Kuwait and the UAE – have agreed to contribute $1.25 billion each, totalling $5bn, between 2012 and 2017.
The aim is to revive the country’s infrastructure, strengthen its economy and promote tourism. Qatar was the last country to contribute and His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, signed the deal with His Majesty King Mohammed VI of Morocco on December 27, 2013.
King Mohammed seeks to overcome the social strife in Morocco through this deal, as the country is also under pressure from international lenders to reduce its budget deficit after spending heavily on food and energy funding in 2011 and 2012. Hence, Morocco hopes to cut its economic budget from 5.5 per cent of its GDP in 2013 to 4.9 percent next year.
Gulf countries have also agreed on a similar package of $5bn to aid Jordan over a five-year period as well.