Saudi Arabia commited $500mln aid to stabilize Yemen’s economy

This initiative aims to bolster financial stability and support essential services in the country

Saudi Arabia unveiled a $500 million economic aid package for Yemen’s official government. The package includes a $300 million deposit to Yemen’s central bank and $200 million to help address the country’s $1.2 billion budget deficit.

Saudi officials said that the aid, to be distributed through the Saudi Development and Reconstruction Program for Yemen (SDRPY), aims to bolster financial stability and support essential services in the war-torn country.

The package prioritises food security, salary support and operational expenses while promoting governance reforms in Yemen’s public institutions.

Saudi Arabia’s earlier economic interventions have helped reduce prices of basic goods including wheat, rice and cooking oil, while supporting 80 power plants across Yemen with oil derivatives.

Yemen has struggled with economic instability amid a devastating civil war that began in 2014. The Saudi aid package comes as international organisations continue to warn of a humanitarian crisis in the country, where millions face food insecurity.