In a strategic move aimed at revitalizing the energy sector and improving basic services, several liberated Yemeni governorates, including Aden, Al-Mahra, Shabwa, Abyan, Lahj, Hadramawt, and Socotra, received new shipments of oil derivatives provided by the Kingdom of Saudi Arabia. This vital step will enable the operation of power generation plants, offering an urgent solution to the energy crisis that has been plaguing citizens and disrupting daily life in these areas.
Saving the electricity sector and operating 70 stations
The Saudi grant aims to operate more than 70 power generation plants across various Yemeni governorates. This support comes at a time when Yemen's electricity sector is facing significant challenges due to aging infrastructure and fuel shortages, which have previously led to frequent power outages that negatively impacted hospitals, schools, and businesses. The arrival of these fuel shipments is expected to increase the operational capacity of the power plants and extend the hours of electricity supply, positively impacting the stability of public services and improving the living standards of Yemeni citizens.
Economic dimensions and easing pressure on the local currency
The impact of the fuel grant extends beyond the service sector to encompass crucial economic dimensions. By providing the fuel necessary to operate power plants, the grant helps alleviate the significant financial burden on the Yemeni government, particularly the Ministry of Finance and the Central Bank of Yemen. Providing fuel as a grant reduces the demand for hard currency that was previously depleted to import petroleum products from foreign markets, thus supporting the stability of the Yemeni rial's exchange rate and preserving foreign currency reserves, a fundamental pillar for economic recovery.
Strict governance and a sustainable development partnership
To ensure maximum benefit from this support, the grant was subject to rigorous governance mechanisms guaranteeing that the aid reached its intended recipients. This was overseen by a supervisory committee comprised of representatives from several Yemeni entities. This support is an extension of previous grants provided by the Saudi Development and Reconstruction Program for Yemen during the years 2018, 2021, and 2022, culminating in the current grant for 2026. Since its establishment in 2018, the program has continued its leading role by implementing development projects and initiatives covering eight vital sectors: education, health, water, energy, transportation, agriculture, and capacity building for government institutions. This underscores the depth of the fraternal relations and the Kingdom's commitment to supporting the stability and development of Yemen.
