Global Geopolitical Series: Bahrain to receive financial aid from Arab allies

As higher oil price helped the Arab league countries like Saudi Arabia, United Arab Emirates to flex their monetary muscles, a group of countries announced aid for Bahrain to save its struggling economy. Bahrain’s official news media announced that the Kingdom of Bahrain, along with its sisters Saudi Arabia, the United Arab Emirates (UAE), and Kuwait will announce to support that stability of financial institutions in Bahrain.

Bahrain has been running budget deficits since 2009 and reached a bottom of -18.4 percent of GDP in 2015. In 2017, budget deficit was -13.2 percent or little higher than $5 billion. This is not the first time the Arab alliance led by Saudi Arabia provided support to Bahrain as the country is closely aligned with the regional policies of Saudi Arabia and the United Arab Emirates (UAE).

However, rampant corruption, decades of stagnation is slowly making the country, a hot bed of domestic revolt and might ultimately plunge into a chaos like Yemen.