Saudi Arabia supports Yemen's budget with 1.3 billion riyals to enhance stability

Renewed Saudi support to enhance stability in Yemen

In accordance with the directives of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz, the Kingdom of Saudi Arabia announced a new economic support package for the Republic of Yemen amounting to SAR 1.3 billion (approximately USD 347 million). This support comes in response to the urgent needs of the legitimate Yemeni government to address its budget deficit, which is used to pay the salaries of public sector employees.

Historical context and fraternal relations

This support is part of a long series of Saudi initiatives aimed at assisting the Yemeni people and their legitimate government, particularly given the difficult circumstances the country has faced for years. Since the outbreak of the Yemeni crisis, the Kingdom has consistently provided substantial humanitarian, development, and economic aid packages, based on its belief in the importance of Yemen's stability for the security of the entire region. This support is implemented through the Saudi Development and Reconstruction Program for Yemen (SDRPY), which works to implement vital projects in various sectors such as health, education, energy, water, and transportation, with the goal of improving infrastructure and basic services provided to Yemeni citizens.

The importance of support and its expected impact

This support is of great importance on several levels, as its impact is not limited to the financial aspect only, but extends to include vital economic, social and political dimensions.

On the local level:

• Ensuring the continuity of essential services: Paying the salaries of government employees, such as teachers, doctors, and civil servants, contributes to ensuring the continuity of government institutions and the provision of vital services to citizens.
• Boosting purchasing power and social stability: Regular salary payments are a lifeline for millions of Yemenis, as they enhance their purchasing power and drive the local economy, contributing to alleviating the humanitarian crisis and achieving stability within Yemeni families.
• Supporting the stability of the national currency: Injecting hard currency helps to support the stability of the Yemeni rial against foreign currencies, which is crucial to reducing inflation and maintaining the prices of basic commodities.

At the regional and international levels:

This support underscores the pivotal role of the Kingdom of Saudi Arabia as a key supporter of peace and stability in Yemen. It also strengthens the position of the legitimate Yemeni government and supports its efforts to achieve sustainable economic recovery. This step aligns with international efforts to find a comprehensive political solution to the Yemeni crisis, as achieving economic stability is a fundamental pillar of any successful and sustainable peace process, paving the way for a brighter future for the brotherly Yemeni people.