Saudi Arabia to provide $500 million in aid to Yemen
Last Updated on December 30, 2024 6:27 am
Saudi Arabia has announced a new economic aid package worth $500 million for Yemen.
The aid will be provided to strengthen the Yemeni government’s budget, maintain the stability of the central bank, and ensure the development and stability of the Yemeni people.
The Saudi Press Agency (SPA) reported on Friday that $300 million of the package will be deposited in the Central Bank of Yemen, which will improve the country’s economic and financial situation. The remaining $200 million will be used to cover Yemen’s budget deficit.
The new aid is part of a $1.2 billion initiative implemented through the Saudi Development and Reconstruction Program (SDRPY). It will increase Yemen’s food security, support wages and operating costs, and help implement the Yemeni government’s economic reform agenda.
Objectives:
Ensuring Yemen’s financial and fiscal stability.
Strengthening the public financial system.
Increasing institutional capacity and improving governance and transparency.
Saudi Arabia hopes that this financial assistance will strengthen Yemen’s private sector, lead to sustainable economic growth, create jobs, and put the national economy on a more stable path.
Previous Saudi economic assistance includes:
Deposits in the central bank, which have increased foreign exchange reserves.
Stabilized the local currency and devalued the exchange rate.
Contributed to GDP growth.
Support for the import of energy and food products.
More than 260 development projects have been implemented in Yemen through the SDRPY in various sectors, including education, health, water, energy, transportation, agriculture, and fisheries development projects.
Contributions to power and other sectors:
Saudi Arabia’s petroleum derivatives grants have supported the operation of 80 power plants in Yemen. They have increased energy efficiency and revitalized the productive and service sectors.
These Saudi initiatives have played a significant role in improving the quality of life in Yemen, ensuring education and health services, and maintaining economic stability.
Source: Arab News