Saudi Arabia has recently announced a new financial aid package of $500 million (approximately €479 million) to support Yemen, aiming to bolster the economically strained policies and reforms of the internationally recognized Yemeni government as it continues its battle against Houthi rebels. Through its account on the social media platform X, the Saudi Development and Reconstruction Program for Yemen detailed the allocation of funds, indicating $300 million (around €288 million) would be deposited directly to the Central Bank of Yemen, alongside another $200 million (approximately €192 million) to help resolve the country's budget deficit.
This generous support has brought Saudi Arabia's total aid to Yemen to $1.2 billion since 2018, reflecting the continuous assistance provided by the kingdom to its neighbor grappling with severe humanitarian crises and internal conflicts. The new deposit at the Central Bank is aimed at increasing the bank's reserves, stabilizing exchange rates, boosting imports of basic products, and supporting the private sector, all intended to improve the living conditions of the Yemeni people.
According to the Saudi program, this additional financial injection will aid the Yemeni government in making regular salary payments, cover unavoidable operational expenses, and support national economic efforts, allowing the government to fulfill other obligations and pursue necessary economic reforms.
Reacting to the aid announcement, Rashad Al Alimi, the President of the Yemeni Presidential Leadership Council, expressed gratitude to Saudi Arabia for its “generous donation,” which he described as a “firm commitment” from the kingdom to alleviate the humanitarian crisis burden and support the aspirations of the Yemeni people for stability, peace, and development.
Meanwhile, Yemeni Prime Minister Ahmed bin Mubarak shared his thanks on social media for the “continuous and generous” support from Saudi Arabia for the Yemeni people “in all circumstances.”
He emphasized how this financial support would not only enable the Yemeni government to pay state employees’ salaries and improve the currency's value but also allow for the rigorous implementation of financial and administrative reform programs and combat corruption.
The timing of this aid follows recent disturbing developments, including the Israeli bombardment of the international airport in Sana, the port of Al Hodeida, and various power plants, posing new challenges for reconstruction and investment endeavors, particularly since these regions are under Houthi control.
The internationally recognized Yemeni government has been based in Aden since 2014 when the Houthis, backed by Iran, took control of the capital, Sana, and considerable territory in the northwest region. The ensuing war has resulted in tens of thousands of deaths and has plunged Yemen onto the list of the world's worst humanitarian disasters, with approximately 80% of the population requiring some form of humanitarian assistance, according to international organizations.
The situation has deteriorated with Houthi operations against vessels in the Red Sea and Arabian Sea amid the Gaza war, turning Yemen increasingly responsive to Israeli attacks, which have impacted various infrastructures across the nation.
This recent round of financial support signifies Saudi Arabia's sustained efforts to stabilize Yemen amid continuous turmoil and reflects the urgent need to address the humanitarian disasters caused by the prolonged conflict.
