United Arab Emirates Cancels Iraq's $7B Debt

Baghdad wins boost from key Arab states
By Peter Fearon,  Newser Staff
Posted Jul 7, 2008 4:31 AM CDT
Jordan's King Abdullah welcomes visiting Iraqi Prime Minister Nuri al-Maliki at the Beit al-Baraka Royal Palace in Amman. King Abdullah is expected to be the first Aran head of state to visit Iraq.    (AP Photo/Awad Awad, Pool)
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(Newser) – Iraq's diplomatic isolation among its Arab neighbors is easing, reports the BBC. The United Arab Emirates canceled Iraq's entire debt of close to $7 billion and appointed a new ambassador, while Jordan's King Abdullah will become  the first Arab head of state to visit Iraq since 2003, boosting the Baghdad government's standing in the region.

Correspondents in the region say Iraq's Sunni neighbors have been unwilling to establish close ties with Iraq's mainly Shia government. But the US has been pushing its Arab allies to bolster the government of Iraq Prime Minister Nouri al-Maliki.