Saudi Arabia supports Yemen's budget with 1.3 billion riyals: Grant details

Dr. Rashad Muhammad Al-Alimi, Chairman of the Presidential Leadership Council in Yemen, expressed his deep gratitude and appreciation to the leadership of the Kingdom of Saudi Arabia, represented by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, for the new economic support provided by the Kingdom to the Yemeni state’s general budget in the amount of 1.3 billion Saudi riyals.

This generous support comes at a critical time, as it directly aims to cover the deficit in the general budget, ensure the continued payment of employee salaries, and cover the operational expenses of essential government facilities, reflecting the Kingdom’s continued commitment to preventing the collapse of Yemeni state institutions.

A message of trust and strategic partnership

In a statement carried by the official Yemeni news agency Saba, President Al-Alimi affirmed that this support is not merely a temporary financial aid package, but rather a "message of confidence" in the Yemeni government and the Presidential Leadership Council's ability to manage the economic situation and revitalize national institutions. Al-Alimi indicated that this stance underscores that the relationship between Yemen and the Kingdom is not a circumstantial or temporary one, but a "strategic choice" aimed at building a brighter and more stable future for the Yemeni people.

A critical economic context and current challenges

This support is doubly important given the difficult economic context Yemen is currently facing. Since crude oil exports ceased due to Houthi attacks on export terminals in Hadramawt and Shabwa in late 2022, the legitimate Yemeni government has lost its most important source of revenue, posing existential challenges to public finances. The Saudi intervention comes to fill a critical funding gap that threatened the government's ability to meet its basic obligations to its citizens.

A history of consistent support and anticipated impact

Historically, Saudi Arabia has played a pivotal role in stabilizing the Yemeni economy through a series of bank deposits and financial grants to the Central Bank of Yemen in Aden. These interventions have previously helped to curb inflation and limit the depreciation of the Yemeni rial against foreign currencies.

The new support of 1.3 billion riyals is expected to have a positive impact on local markets through:

• Strengthening the central bank's cash reserves.
• Reassuring the banking market and reducing currency speculation.
• Ensuring the continuity of public services such as electricity, water, health and education by providing operational expenses.

Al-Alimi concluded his statement by stressing the need for all national forces to rally around the government’s reform program and the partnership with the Kingdom, as it is the true guarantee for restoring the state and improving the living conditions of Yemenis.