Saudi Arabia has approved a $1.2 bn aid package for Yemen. The move is expected to boost the latter’s economy and continue its rebuilding efforts.
In addition, the economic aid will help strengthen regional security and stability in the Aran world.
Saudi granted the economic assistance following a request from the Yemeni government, to help address its budget deficit.
Mohammed Al Jaber, Saudi ambassador to Yemen, and Salem bin Breik, Yemeni finance minister met in Riyadh for the official signing of the Yemen aid package.
“The aid will contribute to supporting the Yemeni government in covering salaries, wages and operating expenses,” said bin Breik.
Part of the economic assistance will also be used for ensuring food security in Yemen.
Read: Saudi Arabia sponsors $1bn economic reform in Yemen
Yemen aid package sign of long-term support
According to Al Jaber, “The new economic support is an extension of a long series of developmental and economic support provided by Saudi for decades. It is an important response to addressing the Yemen’s current fiscal issues.”
Over the past 10 years, Saudi Arabia deposited $4 bn in Yemen’s central bank. This is part of Saudi’s long-term commitment to support the development of Yemen.
According to a Saudi statement, Saudi’s ongoing support has provided a significant boost for Yemen’s currency. It has also stabilized food prices and improved Yemeni’s purchasing power. On several occasions, Saudi’s financial aid has reduced inflation and enabled Yemen to institute fiscal reforms.
Strategic and integrated support
Furthermore, The Kingdom has played an important role in stimulating economic growth in Yemen by providing grants for fuel derivatives. The support has been instrumental in ensuring electricity is provided in all of Yemen’s governorates.
In 2021 and 2022, the total amount of oil derivatives provided was about 1.2 mn tons, with a value of $422 mn. This helped ensure more than 70 power stations could continue operating.
Through the Saudi Development and Reconstruction Project for Yemen, Saudi has implemented 229 development projects and initiatives in 14 governorates in Yemen since 2018. These cover a wider range of sectors including education, health, and energy. Yemen’s transport, water, agriculture, fisheries and government sectors have also benefitted from Saudi support.
In addition, Saudi has launched projects to improve infrastructure, essential services and the creation of jobs.
For more economy related stories, click here.
