Yemeni Minister of Trade: Saudi support is a cornerstone for economic stability
Yemeni Minister of Trade and Industry, Mohammed Al-Ashwal, affirmed that the support provided by the Kingdom of Saudi Arabia to Yemen is no longer merely temporary relief aid, but has transformed into a crucial strategic pillar that has ensured the survival of state institutions and the resilience of the national economy in the face of turbulent challenges. In an exclusive interview with the newspaper Okaz, he explained that this support represents a continuation of the Kingdom's historical stances towards Yemen, noting its pivotal role in driving comprehensive recovery.
A lifeline amid the halt in oil exports
Minister Al-Ashwal's statements are particularly significant given the critical economic situation currently facing Yemen. Since the Houthi militias targeted oil export terminals in Hadramawt and Shabwa, the state budget has lost its most important source of hard currency. In this context, Al-Ashwal noted that Saudi support has been a "true lifeline," helping to bridge the enormous funding gap and bolstering the legitimate government's ability to meet its obligations, thus preventing a slide into a complete economic collapse that threatened catastrophic consequences for the living standards of citizens.
From relief to sustainable development
In a precise description of the nature of Saudi interventions, the minister described the support as having shifted from the realm of traditional "aid" to that of "production," characterizing it as "precise surgical interventions." This qualitative shift is clearly evident in the development projects implemented by the Saudi Program for the Development and Reconstruction of Yemen, which target infrastructure and vital sectors. Al-Ashwal emphasized that this astute economic policy targeted the key sectors of the Yemeni economy and covered investment areas that the general budget was unable to finance, thus helping to stimulate the local market.
Central bank support and currency stability
The Minister of Trade addressed the pivotal role of Saudi deposits and financial grants provided to the Central Bank of Yemen. These deposits are the cornerstone that has contributed to curbing inflation and maintaining relative stability in the Yemeni rial's exchange rate against foreign currencies, which directly impacts the prices of basic food commodities and citizens' purchasing power. He explained that the support has never ceased, but rather has continued strongly to bolster food security and ensure the payment of salaries in critical sectors such as the Ministries of Defense and Interior, thus strengthening the cohesion of the home front.
Revitalizing the energy sector and the private sector
Al-Ashwal highlighted the significant positive impact of the Saudi oil derivatives grant allocated for power plant operations. This support not only provided electricity to homes but also played a crucial role in reducing production costs for the private sector, which had been incurring heavy losses due to power outages and reliance on expensive alternative energy sources. He emphasized that the stability of energy supplies has opened new horizons for revitalizing trade and investment, and has facilitated the free movement of capital, providing reassuring indicators that Yemen, with the support of its brothers, is steadily progressing towards economic recovery.
