Saudi Arabia extends US$500 million for Yemen

Saudi Arabia has announced a US$500 million economic aid package to support Yemen, aimed at stabilizing the Yemeni economy, strengthening the Central Bank of Yemen, and fostering development and growth for the Yemeni people, reports Saudi Gazette.

A testament to Saudi Arabia’s long-term vision for fostering sustainable development and stability in Yemen

This initiative highlights Saudi Arabia’s commitment to addressing Yemen’s economic challenges and improving the quality of life for its citizens.

The package includes a US$300 million deposit to the Central Bank of Yemen, designed to enhance financial and monetary stability, and an additional US$200 million to address the country’s US$1.2 billion budget deficit.

The funds will be allocated through the Saudi Development and Reconstruction Program for Yemen (SDRPY) and will prioritize food security, salary support, operational expenses, and implementing economic reforms to build a stronger financial foundation for Yemen.

Saudi Arabia's efforts aim to stabilize the Yemeni economy and bolster public financial management, while fostering governance and transparency in government institutions.

The aid package is expected to empower Yemen’s private sector to drive sustainable economic growth, create job opportunities, and steer the national economy toward a more sustainable trajectory.

Previous Saudi assistance has yielded significant improvements in Yemen’s economic landscape. Deposits in the Central Bank of Yemen have bolstered foreign reserves, stabilized the local currency, and lowered exchange rate volatility.

This stability has reduced the prices of essential goods, including wheat, rice, milk, cooking oil, and sugar, while easing the costs of fuel and diesel. These measures have not only addressed immediate economic concerns but have also enhanced Yemen's food security and overall quality of life.

Saudi aid has also contributed to key sectors such as healthcare, by covering medication for chronic illnesses and cancer treatments, and education, among others.

Support for electricity generation has been another vital component, with Saudi Arabia supplying oil derivatives to 80 power plants across Yemen.

These initiatives have improved essential services and revitalized Yemen’s critical infrastructure.

Additionally, the Saudi Development and Reconstruction Program for Yemen has implemented 263 development projects and initiatives across Yemen, focusing on sectors including education, health, water, energy, transportation, agriculture, fisheries, and government capacity building.