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WEEKLY NEWSLETTER
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Sudan
Index
Other than Egypt and Libya, Sudan's most important relations
with Arab countries were with the oil-producing states of the
Persian Gulf, in particular Kuwait, Saudi Arabia, and the United
Arab Emirates. After 1974 these three countries became important
sources of foreign economic assistance and private investments.
During the economic crises of the 1980s, Saudi Arabia provided
Sudan with military aid, concessionary loans, outright financial
grants, and oil at prices well below the cost of petroleum in the
international market. By 1990 foreign capital transfers had
become the Sudanese government's most important source of
revenue.
Despite its economic dependence, the Bashir regime refused to
support the Saudi position during the Persian Gulf crisis of
1990-91. Other than the receipt of a small quantity of Iraqi
military supplies, which the Bashir government used in its
prosecution of the war in the south, its motive for its pro-Iraq
stance remained obscure. In fact, relations between Baghdad and
Khartoum, while correct, were limited in 1990. In the spring of
that year, the Iraqi government had ignored official protests
from Bashir and met with representatives of the banned Sudanese
Baath Party and other opposition groups. The decision to side
with Iraq adversely affected Sudan's relations with Saudi Arabia
and its Arab allies. Riyadh retaliated by suspending all grants,
project loans, and concessionary oil sales, measures that had a
devastating impact on Sudan's budget and economy. After Iraq was
defeated, Bashir and other RCC-NS members tried to repair the
damaged relations with Saudi Arabia and Kuwait, but as of mid1991 , these countries had not resumed their former largesse to
Sudan.
Data as of June 1991
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