Aden (South24 Center)

On Saturday (September 20), the Kingdom of Saudi Arabia announced a new economic and developmental support package for the internationally recognized Yemeni government, valued at approximately 1.38 billion Saudi Riyals ($368 million), through the Saudi Development and Reconstruction Program for Yemen (SDRPY).

The Saudi Ministry of Foreign Affairs stated that the support, directed by King Salman bin Abdulaziz in response to a request from the Chairman of the Yemeni Presidential Leadership Council, Dr. Rashad Al-Alimi, includes budget support for the Yemeni government, subsidies for petroleum derivatives, and funding for the operational costs of the Prince Mohammed bin Salman Hospital in Aden.

The Saudi ministry emphasized that this step reflects the Kingdom’s steadfast commitment to supporting the Presidential Leadership Council and the Yemeni government, as well as contributing to economic stability and improving essential services.

Reuters reported that this grant is part of ongoing efforts to support the struggling budget of the Yemeni government, which faces severe financial pressures due to currency collapse and rising prices of basic goods.

Major General Aidrous Al-Zubaidi, President of the Southern Transitional Council (STC) and Vice President of the Presidential Leadership Council, expressed gratitude for Saudi Arabia’s generous support for Yemen’s budget, stating that it represents a critical resource for the government’s economic reform and recovery efforts. He also noted that Riyadh’s support comes amid the difficult economic situation due to the Houthi militia depriving the state of oil revenues, the primary source for salaries and essential services.

Presidential Leadership Council Chairman Rashad Al-Alimi expressed his gratitude to the Kingdom, saying, "On behalf of myself and the Council members, I thank Riyadh for its budget support of 1.38 billion Saudi Riyals."

Prime Minister Salem bin Breik praised the Saudi support, highlighting that it would help in stabilizing the national economy, preserving the reforms achieved, and strengthening the government's efforts at the current stage.

Abdulrahman Al-Mahrami, Vice Chairman of the Presidential Leadership Council, emphasized that this economic and developmental support comes at a critical time, and would contribute to economic stability and improving the value of the local currency.

The Saudi support arrives amid a severe financial crisis facing the Yemeni government, where public sector salaries have been unpaid for over three months.

This assistance represents the largest economic injection since December 2024, when Riyadh provided Yemen $500 million, through the Saudi Development and Reconstruction Program for Yemen (SDRPY), to support the Yemeni government’s budget and the Central Bank.

The 2024 package included a $300 million deposit into the Central Bank and $200 million to address the $1.2 billion budget deficit, alongside funding for food security programs, salaries, wages, and operational expenses.