Arab nations set up booster fund for economies

Arab leaders are pledging $2 billion (£1.3bn) to revamp faltering economies across the region, amid fears of protests over high unemployment, rising prices and rampant corruption, such as those that brought down Tunisia's government.

The pledge will be made at the Arab League economic summit opening today in the Egyptian Red Sea resort of Sharm el-Sheikh.

Arab diplomats said Saudi Arabia and Kuwait have promised to pay $500 million each, while the remainder will come from 11 other member states.

Thamer al-Anni, an Arab League official, said a fund would be set up within weeks to operate as a bank that provides loans to young Arabs who want to start their own small enterprises.

"This will be for businesses with a small capital of about $20,000-$50,000," he said.