U.S President Donald Trump has proposed a US$10 billion fund to finance the rebuilding of Gulf energy infrastructure damaged in the U.S/Israel war with Iran.
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The Trump administration is offering US$5 billion in U.S money to seed the new Gulf reconstruction fund, with the Gulf states asked to match it for a potential US$10 billion total.
Wall Street Journal reported that the money from the fund would also be used to help Gulf states develop alternative oil export routes bypassing the Strait of Hormuz, citing unnamed sources from Washington and Gulf states.
The plan is dubbed the Partnership for Allied Trust and Construction, or PACT for short, and will also involve, besides the U.S., Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait, Iraq, Oman, and Jordan.
The reconstruction plan represents acknowledgement that the war, which the United States and Israel started at the end of February is having an adverse effect on the economies of key Middle East Allies.
In retaliation for US attacks on its territory, the Republic of Iran have launched several strikes on U.S’ Middle East allies due to the presence of U.S military bases on their territory.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
