Bahrain's King Hamad Bin Issa al-Khalifa has ordered that each family in the Gulf state receive £1,650.
The monarch made the decision to celebrate the 10th anniversary of a national charter for reforms with cash as cyber activists called for protests in the country starting from today (14.02.11) to demand political, social and economic changes.
A statement said: "On the occasion of the 10th anniversary of the National Action Charter and as a sign of appreciation for the people of Bahrain who have approved it, King Hamad bin Issa al-Khalifa has ordered 1,000 dinars (£1,650) to be paid to every Bahraini family."
Bahrainis approved a national charter in February 2001 which restored a parliament dissolved in 1975. However, in February 2002, Bahrain became a kingdom ruled by a constitutional monarchy, and recently online activists have been demanding wage protests and other reforms.
The ruling Sunni government has made several concessions in recent weeks, such as higher social spending and offering to release some minors arrested during a security crackdown against some Shi'ite groups last August.
Bahrain - with a population of about 568,000 - is one of the few Arab countries where the majority practices Shia Islam and is considered the poorest among its oil-rich Persian Gulf neighbours.