Knowledge Class News Section: April 7, 2023: In a
significant policy shift, Saudi Arabia has announced that it will no longer
provide unconditional aid in the form of blank checks to Egypt and other poor
regional countries, as it seeks to maintain its influence and presence in the
Middle East and beyond. According to a report by The New York Times, billions
of dollars were given for this purpose in the past year alone.
Crown Prince Mohammed bin
Salman, who wields extensive powers as the son of King Salman bin Abdulaziz,
has introduced conditions on the previously unconditional aid. Assistance will
now be granted only upon fulfillment of certain requirements, marking a departure
from the previous approach.
The decision comes as Saudi
Arabia faces a budget deficit of 28 billion dollars due to increased demand and
prices resulting from the war in Ukraine. The Saudi Finance Minister emphasized
that even countries that received aid without conditions must implement reforms
in their economic, financial, social, and societal structures.
The shift in policy by Saudi
Arabia, a key player in the Middle East, is expected to have significant
implications for regional countries that have relied on its assistance in the
past. It reflects a more strategic and conditional approach to aid provision,
as Saudi Arabia seeks to address its own economic challenges while promoting
reforms in recipient countries.
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