Saudi oil derivatives grant revitalizes Yemen's electricity sector and supports the economy
In a strategic move aimed at bolstering the stability of Yemen's energy sector, the governorates of Aden, Al Mahrah, Shabwah, Abyan, Lahj, Hadramawt, and Socotra received new shipments of Saudi oil derivatives. This grant is part of the ongoing support provided by the Kingdom of Saudi Arabia for the operation of power generation plants, which are essential for the continuation of daily life and public services in these governorates.
Saving the energy sector and operating 70 stations
The oil grant aims to operate more than 70 power generation plants across various liberated Yemeni governorates. This support comes at a critical time when Yemen's energy sector is facing significant challenges due to dilapidated infrastructure and resource scarcity, making these fuels a lifeline that ensures the continued flow of electricity to homes, hospitals, schools, and vital facilities.
Economic dimensions that go beyond energy provision
The impact of the Saudi oil derivatives grant extends beyond the service sector to include significant economic effects. This support is crucial in easing pressure on the Central Bank of Yemen, saving the Yemeni government substantial amounts of foreign currency that would otherwise have been spent on fuel imports. This financial saving directly contributes to stabilizing the local currency exchange rate and reduces the financial burden on the state budget, allowing available resources to be directed towards other service sectors.
Strict governance to ensure access for beneficiaries
To ensure maximum benefit from this support, the grant was subject to rigorous governance mechanisms and strict oversight procedures. A specialized committee comprising representatives from several relevant Yemeni entities oversees the receipt and distribution of the fuel to guarantee its delivery to the targeted power plants and their efficient operation, thereby enhancing the reliability of the electricity supply and improving the efficiency of government institutions.
A long history of development support
It is worth noting that the Saudi Program for the Development and Reconstruction of Yemen continues its leading role in supporting its brothers in Yemen, having provided oil derivatives grants in several phases covering the years 2018, 2021, and 2022, culminating in the current grant for 2026. The program's role is not limited to the energy sector, but extends to include development projects and initiatives in eight vital sectors, including education, health, water, transportation, agriculture, and fisheries, in addition to capacity-building programs for government institutions, reflecting the Kingdom's firm commitment to supporting development and stability in Yemen.
