Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)

Housing loan installments will be postponed for six months starting in April, Bahrain’ government announced on Monday.

This decision is part of the measures taken by the government to reduce the effects of the coronavirus outbreak on the Kingdom’s economy and citizens.

Crown Prince Salman bin Hamad Al Khalifa, first deputy premier, took part in the cabinet session, which was chaired by Prime Minister Prince Khalifa bin Salman Al Khalifa and was held via videoconference.

In order to help stabilize the economy, the government announced in April a BHD4.3 billion ($11.4 billion) stimulus package to mitigate the economic impact of COVID-19 for both individuals and businesses.

It included key polices, such as paying salaries of all private sector employees for three months from April 2020 from the unemployment fund pursuant to constitutional procedures and Bahrain's Social Insurance Law.

It also pledged to pay the Electricity and Water Authority utility bills for individuals and businesses for three months from April.

The government exempted municipal fees for all individuals and businesses, industrial land rental fees for all businesses and tourism levies for all tourism-related industry for a period of three months from April 2020.

It decided to increases the size of the Liquidity Support Fund two-fold to BHD200 million ($530 million) and the Central Bank of Bahrain's loan facilities to BHD3.7 billion ($9.8 billion) to allow the deferment of debt installments and the extension of additional credit.

The Kingdom redirected all Tamkeen (the government agency responsible for the provisions of loans and assistance to businesses) programs to support adversely affected businesses and the restructuring of debts issued by Tamkeen.



Kuwait, China Sign Contract for Mubarak Al-Kabeer Port Study and Design

A general view of the city of Kuwait (Reuters)
A general view of the city of Kuwait (Reuters)
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Kuwait, China Sign Contract for Mubarak Al-Kabeer Port Study and Design

A general view of the city of Kuwait (Reuters)
A general view of the city of Kuwait (Reuters)

Kuwait's Ministry of Public Works said on Sunday it signed a contract with a subsidiary of the Chinese Ministry of Transport to conduct studies, design plans, and provide pre-implementation services for the completion of the Mubarak Al-Kabeer Port project.

The Mubarak Al-Kabeer port is a vital strategic project located on the eastern side of Boubyan Island in North Kuwait that aims to establish a secure regional corridor and a commercial hub in the region.

The Chinese side seeks to link the port to the Belt and Road Initiative.

In January, the Kuwaiti Cabinet approved the direct contracting process with the China State Construction and Communications Corporation Limited, affiliated with the Chinese Ministry of Transport, to implement, manage and operate the Mubarak Al-Kabeer Port throughout its entire phases.

Kuwaiti Minister of Public Works Noura Al-Mashaan said the project aims to establish a commercial port in Kuwait to serve as a regional transportation hub within the strategic transformation vision of New Kuwait 2035, designed to develop the northern region as an integrated economic and urban system based on a comprehensive and integrated development vision that considers all economic and urban aspects.

She added that the project will significantly contribute to diversifying and increasing the gross domestic product and restoring Kuwait to its regional commercial and financial role.

Kuwait says that around 50% of the first phase of Mubarak Al-Kabeer Port is complete. It does not specify the nature of this phase or the cost of the project.

Kuwait signed multiple MoUs with China during Sheikh Mishal Al-Ahmad Al-Sabah’s visit to Beijing while he was Crown Prince, before becoming Emir in December 2023. Among these agreements, the Mubarak Al-Kabeer Port project was the largest.

In a separate development, Kuwait’s Finance Minister Noura Al-Fassam said on Sunday the public debt law is in its final stages and will be submitted to the government for approval.

She said the law will enable the government to borrow from international markets and will use the funds for financing infrastructure developments and increase state capital expenditure to develop the economy.

Al-Fassam, who is also Minister of State for Economic Affairs and Investment, said that the Kuwaiti state budget for the 2025/2026 fiscal year is indicative of the government’s commitment towards financial “balance” that can only be achieved after implementing economic reforms.

She said the bulk of planned spending for the 2025/2026 fiscal year will be on some 90 key infrastructure and development projects, running the gamut from education and healthcare to tourism and culture.

The Minister noted that a state hiring boom could be a potential by-product of the state budget, which is expected to provide 15,853 jobs.