Saudi officials announced a $1.2 billion aid package for Yemen’s internationally recognised government on Tuesday.
It will support the country’s ailing economy, pay salaries, and improve food security, and demonstrates the Kingdom’s intention to assist Yemen in achieving security, stability, and prosperity, according to the Saudi Press Agency.
The economic support was granted in response to the Yemeni government’s request for assistance in addressing its budget deficit, it noted.
The Saudi ambassador to Yemen, Mohammed Al-Jaber, and Yemen’s finance minister, Salem bin Breik, attended a signing ceremony for the aid package in Riyadh.
“The aid will contribute to supporting the Yemeni government in covering salaries, wages, and operating expenses,” the Yemeni minister stated.
“The assistance will also have a significant impact on ensuring food security in Yemen, and it demonstrates the Kingdom’s ongoing support for Yemen.”
“The new economic assistance is an extension of the Kingdom’s decades-long series of developmental and economic assistance, and it is an important response to the Yemeni government’s budget deficit.”
According to the SPA, Saudi Arabia deposited $4 billion in Yemen’s central bank between 2012 and 2022 to help improve the daily life of Yemenis.
It added that the Kingdom’s integrated support has helped improve the country’s financial and economic situation, primarily through the effect it has had on the exchange rate of the Yemeni riyal, which has helped to improve the lives of Yemeni citizens by stabilising food prices, improving purchasing power, lowering inflation, and increasing expenditure rates.
The Kingdom has played an essential role in promoting Yemen’s economic growth by providing grants for fuel derivatives, with the goal of ensuring that power is available in all of Yemen’s governorates.
In 2021 and 2022, the total amount of oil derivatives given was around 1,260,850 tonnes, valued at $422 million, which helped assure the continued operation of more than 70 power plants.
Since 2018, the Kingdom has executed 229 development projects and initiatives in 14 governorates through the Saudi Development and Reconstruction Project for Yemen, covering seven sectors: education, health, energy, transport, water, agriculture, fisheries, and government institutions. Furthermore, it has started projects to strengthen infrastructure, basic services, and job development.
