Last Update 12:53
Friday, 15 November 2019

Saudi to send cash-strapped Palestinians $100 million

Saudi finance minister tell Palestinian president Abbas the kingdom will transfer $100 million to the budget of the state of Palestine

Thursday 17 Jan 2013
Views: 741
Views: 741

Saudi Arabia will send the cash-strapped Palestinian Authority $100 million to help alleviate its financial crisis, the official Palestinian news agency WAFA reported.

In a report late Wednesday, the agency said that president Mahmud Abbas received a call from Saudi Finance Minister Ibrahim al-Assaf who "informed him of a decision by King Abdullah... to transfer $100 million (75 million euros) to the budget of the state of Palestine."

Abbas thanked King Abdullah for the "generous gesture."

The decision comes "at a time when the state budget is suffering from a severe deficit due to the Israeli government's seizure of Palestinian funds as punishment for Palestine becoming a UN non-member observer state."

The Palestinian Authority, which rules the West Bank, has faced a severe economic crisis in recent months, which has only deepened with Israel's decision to withhold the tax and tariff revenues it collects on the PA's behalf.

The decision came in response to the Palestinians' successful bid for upgraded UN membership, a move fiercely opposed by Israel and the United States.

In response, the Palestinians urged Arab nations to activate a "safety net" of $100 million a month to make up the shortfall.

But despite pledging to deliver the money, funds have yet to materialise, leaving the PA unable to pay its thousands of government employees, who are still owed half their salaries from November and all their salaries from December.

The late salary payments have led to strike action by government workers, who say they cannot even afford to travel to work, and are currently taking at least two days a week off in protest.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.