Abu Dhabi to give Yemen $650m grant

Abu Dhabi, December 16, 2009

The emirate of Abu Dhabi said on Wednesday it was giving a Dh2.39 billion ($650 million) grant to Yemen, an impoverished country which is battling a domestic rebellion and separatist sentiment.

The Abu Dhabi Fund for Development said the grant will finance energy, housing, healthcare and infrastructure projects.

Abu Dhabi, the wealthiest of the seven emirates that make up the UAE, threw the emirate of Dubai a $10-billion lifeline on Monday to head off a default by property firm Nakheel, and keep its parent company, Dubai World, afloat through to the end of April.

Yemen is battling a Shi'ite rebellion in the north, which is a worry for its Gulf Arab neighbours, including Saudi Arabia, the world's largest oil exporter, which fears the conflict could weaken its own stability.

Yemen is also struggling with rising separatist sentiment in the south and is fighting al Qaeda militants as well. – Reuters

Tags: Saudi Arabia | abu dhabi | yemen | grant |