Saudi Arabia allocates 500 million USD to support Yemeni government

Aden (Yemen), Dec 28 Saudi Arabia has allocated 500 million to the Yemeni government to cover state employees' salaries and other expenses, Yemeni Prime Minister Ahmed Awad bin Mubarak said.

In a post on social media platform X, Ahmed Awad bin Mubarak expressed "profound gratitude and appreciation" to Saudi Arabia for its "continuous and generous support."

"The launch of the fourth batch of support, amounting to $200 million for the general budget, alongside a $300 million deposit for the Central Bank of Yemen, demonstrates the kingdom's steadfast solidarity with the Yemeni people," Ahmed Awad bin Mubarak added.

The Yemeni prime minister emphasised that the aid will allow the government to pay state employees' salaries, enhance citizens' living conditions, and help stabilise the significantly depreciated Yemeni currency, ultimately contributing to overall market and economic stability, Xinhua news agency reported.

The funding is part of a $1.2 billion support package pledged by Saudi Arabia last year to bolster Yemen's struggling economy. Previous disbursements from the package valued at 250 million dollars were made in February and August last year.

Yemen has been embroiled in a devastating civil war since late 2014, with the Houthis fighting against the internationally recognised Yemeni government. In 2015, the Saudi-led coalition intervened to support the Yemeni government in the war.

Ten years after the Houthis' takeover of Sanaa, Yemen presented a stark picture of north-south division.

The Houthis controlled most of the northern areas, including Sanaa and the strategic Red Sea port of Hodeidah. The internationally recognised Yemeni government, led by the Presidential Leadership Council since April 2022, mainly controlled the southern and eastern regions, with Aden serving as the temporary capital.

The central Marib province and southwestern Taiz province remained hotly contested. Adding to the complexity, extremist organisations such as Al-Qaeda in the Arabian Peninsula exploited the instability, operating in remote areas of southern Yemen.

The toll on Yemeni civilians had been catastrophic. UN agencies estimated that by the end of 2021, the conflict had directly and indirectly caused 377,000 deaths. The UN had declared the Yemen situation "the largest humanitarian crisis in the world."

Source: IANS