Saudi Arabia Commits $1.2 Billion in Economic Aid to Yemen Amidst Struggling Economy

Tue Aug 01 2023
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RIYADH: In a bid to alleviate Yemen’s economic woes, Saudi Arabia has pledged $1.2 billion in aid to the country’s presidential council, according to a source. The Yemeni economy has been grappling with a weak currency and soaring prices, and the recent Houthi drone attacks on oil tankers in southern oil terminals have exacerbated the situation, halting the government’s crude oil exports from the region.

Despite a reduction in fighting with the Iran-aligned Houthi rebels in north Yemen over the past year, the coalition government, headquartered in Aden, has faced significant challenges in restoring stability and economic growth.

The financial support from Saudi Arabia is expected to play a pivotal role in strengthening security measures in the region. Moreover, the aid aims to encourage dialogue among all parties involved to work towards a comprehensive political solution to the Yemeni crisis.

Saudi Arabia’s Aid for Yemen

A Yemeni official revealed that the donation would be utilized to cover essential expenses, including government wages, fuel for power plants, and food imports. These measures are critical in addressing immediate humanitarian needs and restoring essential services for the Yemeni population.

Since the Houthi uprising in 2014, which resulted in the government’s ouster from Sanaa, Yemen has been engulfed in conflict. The ongoing fighting since 2015 has led to the loss of tens of thousands of lives and has left a staggering 80 percent of Yemen’s population dependent on humanitarian aid for survival.

Saudi Arabia’s commitment to providing significant financial aid underscores its commitment to supporting Yemen during these challenging times. The aid package not only addresses urgent economic concerns but also seeks to lay the groundwork for a comprehensive and inclusive political resolution to the crisis.

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