Saudi Arabia Deposits $250 Million to Boost Yemen's Economy
|Kingdom's ongoing support aims to bridge budget deficit, stabilize currency, and improve living conditions
RIYADH - Saudi Arabia has taken a significant step towards aiding Yemen's struggling economy by depositing $250 million with the legitimate Yemeni government. This deposit, out of a total economic aid package worth $1.2 billion, demonstrates the Kingdom's commitment to strengthening ties and supporting the Yemeni people. The move is in accordance with the directives of Custodian of the Two Holy Mosques King Salman and Crown Prince Mohammed bin Salman, serving as part of the economic reforms undertaken by the Yemeni government.
The economic support aims to offset the budget deficit, provide assistance for salaries, wages, operating expenses, and security costs, and contribute to the economic reforms being implemented by the Yemeni government. It underscores Saudi Arabia's dedication to achieving security, stability, and development for the Yemeni people, nurturing the Yemeni government's budget, enhancing the purchasing power of Yemeni citizens, and supporting the economic recovery of Yemen.
Saudi Arabia has consistently made relentless efforts to support and strengthen Yemen's economy and improve the living conditions of its people. In August 2023, the Kingdom announced an economic aid package worth $1.2 billion in response to Yemeni government's request to address the budget deficit, support salaries, wages, and operating expenses, and ensure food security. The total direct economic and development support provided by the Kingdom from 2012 to 2023 amounts to approximately $11.2 billion.
The economic aid is expected to have significant impacts, including supporting the budget deficit, improving the living conditions of Yemeni citizens, enhancing the capabilities of the Yemeni government, implementing economic reform programs, and strengthening the Central Bank of Yemen's capacity through the activation of monetary policy tools.
It is worth noting that in 2012, Saudi Arabia provided $1 billion in support, followed by a $2 billion deposit in the account of the Central Bank of Yemen in 2018 to cover the import of essential food items like wheat, rice, milk, cooking oil, and sugar, which contributed to improvements in the human development index and foreign exchange reserves. The previous Saudi deposit resulted in a reduction in fuel and diesel prices, stabilization of the exchange rate of the Yemeni riyal, and a growth in real GDP.
Moreover, the Kingdom has played a crucial role in stimulating Yemen's economic growth by providing grants of oil derivatives used for electricity generation in all governorates of Yemen. These grants aimed to boost the Yemeni economy and improve the efficiency of vital sectors. The total amount of support from oil derivatives reached about 1,260,850 metric tons, aiding more than 70 Yemeni stations.
Through the Saudi Development and Reconstruction Program for Yemen, the Kingdom has implemented over 229 development projects and initiatives in various Yemeni governorates, spanning crucial sectors such as education, health, water, energy, transportation, agriculture, fisheries, and capacity development programs for the Yemeni government.
This latest economic support from Saudi Arabia reaffirms its commitment to assisting Yemen during these challenging times and showcases the deep bonds of brotherhood between the two nations. Saudi Arabia's steadfast support is instrumental in driving economic stability, revitalizing Yemen's financial situation, and enabling sustainable development for a brighter future for the Yemeni people.