A joint urgent statement from the UAE, Saudi Arabia and Kuwait

In this context, a well-informed source stated that Bahrain postponed the target year to achieve fiscal balance to 2024 due to the crisis of the Corona virus pandemic last year, and announced plans to increase value-added tax to boost state revenues.

The finance ministers of Saudi Arabia, Kuwait and the UAE met with the Bahraini Finance Minister to discuss the progress made by the Kingdom of Bahrain in improving its financial conditions. And he affirmed their support for its efforts to implement further reforms to enhance the stability of public finances and support sustainable economic growth

It is worth noting that Kuwait, the UAE and Saudi Arabia extended an aid package to Bahrain in 2018 worth $10 billion

According to International Monetary Fund data, Bahrain's public debt rose to 133 percent of GDP last year, compared to 102 percent in 2019.

For its part, Standard & Poor's expected the public budget deficit in Bahrain to reach 5% on average in the period from 2021 to 2024, compared to 16.8% of GDP last year, excluding the impact of a possible increase in value-added tax, according to what was published by the News Gateway website.