Saudi Arabia supports Yemen's budget with 1.3 billion riyals to enhance stability
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 Al Saud, the Kingdom of Saudi Arabia has provided new economic support to the Republic of Yemen amounting to SAR 1.3 billion (approximately USD 346 million). This support comes in response to a request from the Yemeni government for assistance in addressing its budget deficit related to public sector employee salaries.
The context of support and its economic importance
This support comes as part of the Kingdom's ongoing efforts to support the Yemeni people and their legitimate government, particularly given the difficult economic conditions the country is experiencing due to the years-long conflict. The war has led to a sharp decline in the Yemeni economy, a collapse in the value of the local currency, and the shutdown of many productive sectors, leaving the Yemeni government facing significant challenges in providing basic services and paying employee salaries regularly.
Historical background of the crisis and Saudi support
Since the outbreak of the Yemeni crisis in late 2014 and the intervention of the Saudi-led coalition in 2015 to support the legitimate government, the Kingdom has played a pivotal role in providing humanitarian, development, and economic assistance to Yemen. Previous Saudi support has included financial deposits in the Central Bank of Yemen to stabilize the currency, fuel grants to operate power plants, and funding vital projects through the Saudi Program for the Development and Reconstruction of Yemen. This latest support is part of a continuous series of initiatives aimed at preventing the collapse of Yemeni state institutions and alleviating human suffering.
Expected impact of support at different levels
At the local level, this funding is expected to enable the Yemeni government to pay the salaries of thousands of employees in the civil and military sectors, thereby boosting their purchasing power and revitalizing local markets. Regular salary payments also ensure the continued operation of vital facilities such as hospitals and schools, which is crucial for maintaining a minimum level of services for citizens. Regionally, this support underscores the Kingdom's ongoing commitment to Yemen's stability as an integral part of regional security and strengthens the Yemeni government's position in any future political negotiations. Internationally, this support aligns with global calls for increased economic assistance to Yemen to prevent the humanitarian crisis from worsening and highlights the Kingdom's role as a key player in efforts to achieve peace and stability in the country.
