THE UAE has granted Bahrain $2.5 billion to help fund development projects.

The money – to be disbursed over 10 years on an annual basis of $250 million – will pay for projects in housing, electricity, water, infrastructure and social services.

A memorandum of understanding in this regard was signed by Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa and acting director of the Abu Dhabi Fund for Development Mohammed Al Suwaidi.

The projects will be identified by the government in co-ordination with the Abu Dhabi fund.

Al Suwaidi said the grant would finance vital projects in the kingdom which enters a new phase of development.

The grant is part of the GCC Marshall Plan, through which Bahrain will receive $10 billion in aid from four countries over the next 10 years.