The Palestinian Authority has received a $100m (£75m) grant from Algeria.
Algeria’s President Abdelmadjid Tebboune made the announcement after meeting with visiting Palestinian leader Mahmoud Abbas.
Tebboune said at a joint press conference that the funding was “in keeping with Algeria’s revolutionary history and the entire Algerian people’s commitment to supporting the just Palestinian cause under all circumstances.”
Tebboune said Algeria will host the Arab League summit in March 2022, the first since Morocco reestablished diplomatic relations with “Israel” following a series of U.S.-brokered peace agreements.
Palestinian Authority faces severe financial challenges, resulting in a struggle to pay public sector employees.
Algeria has stepped up its activity on the Palestinian issue lately, just as Morocco has been building new ties with Israel since signing a normalization agreement last year.
Palestinian leader Mahmoud Abbas’ trip to North Africa includes a stop in Tunisia just two weeks after Israeli Security Minister Benny Gantz signed a security agreement with Morocco.
The deal enraged Algeria, which views Israeli security cooperation with the kingdom as a threat to national security.
Rabat severed diplomatic ties with Algiers in August, citing Morocco’s “hostile” acts, which the kingdom disputes.