Gulf States Change Financing Dynamics in Horn of Africa

The American Enterprise Institute published on 23 April 2019 an analysis titled “Sudan’s Windfall from the Gulf and the Perils of New Development Finance” by Karen E. Young.

Saudi Arabia and the UAE announced in April a $3 billion support package for Sudan. This is one in a long list of financial transfers from the Gulf States to the Horn of Africa. It marks a step away from the traditional role of international financial institutions such as the IMF and World Bank and puts in doubt development aid financing that follows Bretton Woods principles.