Saudi support of 1.3 billion riyals for Yemen: A lifeline for the economy
His Excellency Dr. Rashad Muhammad Al-Alimi, Chairman of the Yemeni Presidential Leadership Council, expressed his deep gratitude and appreciation to the leadership of the Kingdom of Saudi Arabia, represented by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, for providing new economic support to the Republic of Yemen worth 1.3 billion Saudi riyals.
Al-Alimi explained in an official statement carried by the Yemeni News Agency (Saba) that this generous support will be allocated to cover the deficit in the state’s general budget, support operational expenses, and ensure the payment of salaries for public sector employees, which represents a lifeline for the exhausted Yemeni economy.
The context of support in light of the Yemeni crisis
This support comes within the framework of the Kingdom's ongoing efforts to support legitimacy in Yemen and help its people overcome the humanitarian and economic crisis that has plagued the country for years. Since the outbreak of conflict in 2014 and the intervention of the Saudi-led Arab Coalition in 2015 to restore legitimacy, Yemen has faced severe economic challenges, including the devaluation of its currency, high inflation rates, and the difficulty of providing basic services to its citizens. Over the years, the Kingdom has provided various aid packages, including deposits in the Central Bank of Yemen, oil grants, and development projects through the Saudi Program for the Development and Reconstruction of Yemen, with the aim of achieving stability and preventing the collapse of state institutions.
The importance and expected impact of support
Domestically, this support is expected to have a direct and positive impact on the lives of millions of Yemenis. By helping to pay salaries, it will boost citizens' purchasing power and stimulate the local economy in liberated areas. It will also contribute to stabilizing the Yemeni rial's exchange rate against foreign currencies, mitigating the sharp fluctuations that negatively affect the prices of basic commodities. Furthermore, this support will empower the Yemeni government to better fulfill its responsibilities and deliver essential services, thereby strengthening public trust in state institutions.
Regionally and internationally, this Saudi stance reaffirms the Kingdom's pivotal role in supporting Yemen's stability and the region's security. Al-Alimi considered the support a strong message of confidence in the recovery path led by the Presidential Leadership Council and the government's ability to revitalize its national institutions and consolidate security and stability. He noted that the partnership with the Kingdom is not circumstantial but rather a "strategic choice for a brighter future," which strengthens the legitimate government's political position in any future negotiations and underscores its commitment to finding a comprehensive political solution to the Yemeni crisis in accordance with international frameworks.
