Aden (South24 Center)

The internationally recognized Yemeni government called on Wednesday, July 16, for urgent economic support from Saudi Arabia and the United Arab Emirates, as the financial crisis worsens due to halted oil exports and the Houthi-led financial escalation.

The request came during a cabinet meeting chaired by Prime Minister Salem Saleh bin Buraik in the temporary capital Aden. 

An official statement noted that the government faces complex and compounded challenges threatening its financial stability, a warning that the continued suspension of oil exports since late 2022 due to Houthi attacks on ports has deprived the state of over 70% of public revenues, severely impacting citizens' livelihoods.

The government voiced concern at the Houthis economic escalation, particularly their printing of illegal currency, including the new 50-rial coin, which it described as threatening financial unity and deepening monetary division between Sanaa and Aden. 

The cabinet stressed that Yemen is fighting an economic battle no less dangerous than the military confrontation, and emphasized the need for the coalition’s support, especially from Saudi Arabia and the UAE, to ensure stability and prevent total collapse.

Al-Zubaidi Urges Accelerated Government Reforms

In a related development, Southern Transitional Council (STC) President and Vice President of the Presidential Leadership Council Aidrous Al-Zubaidi met with Prime Minister Bin Buraik on Thursday, July 17, to review government performance on economic and service issues.

Al-Zubaidi expressed concern over the sluggish government progress amid worsening public hardship, calling for accelerated reforms and guaranteed salary payments for public sector employees, both in civilian and military. He affirmed the STC’s support for the government and commitment to removing obstacles.

Al-Zubaidi also held a separate meeting with the Defense and Interior ministers to discuss military and security conditions, including reopening of roads between government-held areas and the Iran-backed Houthi territories.

EU Delegation Continues Meetings

Meanwhile, an EU delegation including EU Ambassador Gabriel Munuera Viñals, with the French and Dutch ambassadors, and Germany’s chargé d’affaires, continued diplomatic engagements in Aden.

On Tuesday, July 15, the delegation held separate meetings with Presidential Leadership Council Chairman Rashad Al-Alimi and PM Bin Buraik, addressing political, economic, and humanitarian challenges, as well as opportunities to support Yemen’s economic recovery plan.

Al-Alimi stressed that “the war is not only military but also an economic battle”, noting the Houthi attacks have cost the state significant revenue. 

He called on the EU to designate the Houthis as a terrorist group, citing their systematic targeting of the economy under the legitimate government-- through the printing of new currency and threats to international shipping.

New Houthi Attack on Israel

On Wednesday, July 16, the Houthis escalated attacks against Israel. Military spokesperson Yahya Saree claimed in a televised statement that they launched a ’Zulfiqar‘ missile at Ben Gurion Airport and three drones targeted the Negev and Eilat Port, asserting that the strikes "achieved their objectives”.

The Israeli military later on Wednesday confirmed intercepting a Yemen-origin missile, triggering sirens in areas including the Dead Sea, with no casualties reported. Earlier on Tuesday, Israel had downed a drone entering from the Red Sea, coinciding with the Houthi claims of targeting Eilat Port and a Negev military site.

In a related development, Israel’s Channel 12 reported that Eilat Port will suspend operations starting Sunday due to debt defaults, as shipping companies increasingly divert to Mediterranean ports like Haifa and Ashdod to avoid Red Sea risks.