The Saudi kingdom is offering financial aid to Yemen to alleviate the effects of the crisis and alleviate the humanitarian disaster

Saudi Arabia grants $1.2 billion in economic aid to Yemen

AFP/FAYEZ NURELDINE - El embajador de Arabia Saudita en Yemen, Mohammed bin Saeed Al-Jaber (der.), y el ministro de Finanzas yemení, Salem Bin Brik, se dan la mano durante una ceremonia de firma de ayuda financiera a Yemen en Riyadh, el 1 de agosto de 2023 — AFP/FAYEZ NURELDINE - The Saudi Arabian ambassador to Yemen, Mohammed bin Saeed Al-Jaber (right), and the Yemeni Finance Minister, Salem Bin Brik, shake hands during a signing ceremony for financial aid to Yemen in Riyadh, on August 1, 2023

Marina Coronado

02/08/23

The Saudi government announced on Tuesday 1 August that it will grant a package of economic aid to the Yemeni government in order to boost Yemen's severely troubled economy.

The Yemeni government has made a formal request to address the budget deficit, and the aid will be received by Yemen's Presidential Council. Reuters reported that, "a Yemeni official said the donation would be used to pay for government salaries, fuel for power plants and food imports".

The country's economy is in severe crisis after years of devastation and humanitarian disasters caused by the war. The Yemeni government, which is backed by Saudi Arabia, has struggled with problems such as currency depreciation, high costs and lack of essential services. Famine, cholera and COVID-19 pose risks to the nation. The UN estimates that 16 million Yemenis are at risk of starvation and that more than 20 million people are in need of humanitarian assistance.

AFP/FAYEZ NURELDINE - Arabia Saudita anunció el 1 de agosto una subvención de 1.200 millones de dólares para el gobierno internacionalmente reconocido de Yemen, el último intento de apuntalar la economía en declive del país marcado por la guerra — **AFP/FAYEZ NURELDINE** - Saudi Arabia announced on August 1 a $1.2 billion grant to the internationally recognized government of Yemen, the latest attempt to prop up the war-scarred country's declining economy

According to Saudi source Al Arabiya, the aid will be disbursed through the Saudi Development and Reconstruction Programme for Yemen (SDRPY). The SDRP was established in May 2018 to provide Yemen with technical and institutional support along with humanitarian aid to pursue sustainable development in the country. The programme works with Yemeni governmental and non-governmental agencies, ministries, local authorities, regional and international organisations and development funds.

Although most of the fighting has ceased by Houthi rebels in northern Yemen following the UN-mediated ceasefire, fighting and several Houthi drone attacks continue, with the aim of targeting oil terminals in the south and preventing the export of oil. The rebels meanwhile control the most populated areas in the north as well as the capital, Sana'a. This war has left more than 80% of the population dependent on foreign humanitarian aid.

Since 2015, Saudi Arabia has served as the de facto military leader in the fight against the Houthis in support of the internationally recognised administration. In addition, since 2015, the coalition has donated more than $18 billion in economic and humanitarian aid to Yemen.

Based on the outcomes of the National Dialogue Conference, the Gulf Cooperation Council Initiative and UN Security Council Resolution 2216, Saudi Arabia has declared its commitment to finding a political solution to the conflict in Yemen. In addition, the Kingdom has supported Martin Griffiths, the UN Special Envoy for Yemen, in his efforts to restart peace talks.

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