Saudi Arabia supports Yemen's budget and pays the salaries of civil servants and military personnel
In a move reflecting the depth of fraternal relations and the Kingdom of Saudi Arabia's continued leading role in supporting regional stability, the Ambassador of the Custodian of the Two Holy Mosques to Yemen, Mohammed Al Jaber, announced that the Kingdom will provide new and direct financial support to the Yemeni government's budget. This support comes at the generous direction of the Saudi leadership, may God protect them, with the aim of covering the expenses of paying the salaries of state employees in all sectors, thus providing a lifeline to the Yemeni economy amidst the current challenges.
Ambassador Al Jaber explained that this package is not limited to civilian salaries, but also includes the disbursement of salaries for all military and security forces affiliated with the Supreme Military Committee, through the Saudi-led coalition. The actual disbursement process is scheduled to begin next Sunday, promising significant financial relief for a large segment of Yemeni society that has suffered from income disruptions or fluctuations in recent times.
The context of support and the path of economic reforms
This announcement cannot be viewed in isolation from the broader context of Saudi Arabia's efforts in Yemen. For years, the Kingdom has been leading a comprehensive reconstruction and development program (the Saudi Program for the Development and Reconstruction of Yemen), in addition to previous billions in deposits in the Central Bank of Yemen, which have helped curb inflation. This new support coincides with development projects and initiatives in vital sectors, most notably the provision of petroleum derivatives to operate power plants. This reflects an integrated strategy aimed at supporting the Yemeni government's efforts to implement its economic reform program and achieve financial and monetary stability.
Strategic importance and expected impact
This support is of paramount importance on several levels. Locally, injecting cash through salaries will stimulate the local market, increase citizens' purchasing power, and alleviate the severity of the humanitarian crisis, which the United Nations classifies as one of the worst in the world. Furthermore, the regular payment of salaries to military and security personnel strengthens the cohesion of these institutions and their ability to maintain security and stability.
Regionally and internationally, this support sends a clear message to the international community about the Kingdom's commitment to supporting the legitimate Yemeni government not only politically and militarily, but also economically and developmentally, thus thwarting attempts to destabilize the country. This substantial support is expected to contribute to improving the exchange rate of the Yemeni currency against foreign currencies, which will positively impact the prices of food and basic commodities and enhance the prospects for peace by fostering a more stable economic environment.
