المملكة: In detail: The Kingdom provides new support worth $500 million to Yemen

The Kingdom of Saudi Arabia provided new economic support to Yemen worth 500 million US dollars, to strengthen the budget of the Yemeni government, and to support the Central Bank of Yemen, and out of the Kingdom’s keenness to achieve stability and development for the brotherly Yemeni people.
The new Saudi support includes a $300 million deposit in the Central Bank of Yemen, to improve the economic and financial situation, and $200 million in support to address the Yemeni budget deficit out of a total of $1.2 billion, through the Saudi Development and Reconstruction Program for Yemen, to enhance food security in Yemen, and support salaries and wages. And operating expenses, and assisting the government in implementing the economic reforms program.

Saudi support for Yemen

The economic support aims to establish the foundations of economic, financial and monetary stability in the Republic of Yemen, strengthen the public financial situation, develop and build the capabilities of government institutions, enhance their governance and transparency, and enable the private sector to drive sustainable economic growth and create job opportunities, which leads to placing the national economy in A more sustainable path, and advancing the process of economic and social development.
Previous Saudi deposits had a positive impact by increasing foreign exchange reserves in the Central Bank of Yemen, lowering exchange rates, and growing gross domestic product. They also contributed to reducing fuel and diesel prices, and lowering the prices of imported food commodities.

Covering the import of goods

It also contributed to covering the import of basic food commodities (wheat grains, wheat flour, rice, milk, cooking oil, and sugar), strengthening the Central Bank’s foreign currency reserves, enhancing the stability of the local currency, and lowering fuel and diesel prices.
While Saudi grants achieved a positive impact in promoting economic and social development, saving operating expenses, and supporting the national economy, they also contributed to reducing economic deterioration by increasing foreign exchange, raising the level of confidence in the Central Bank of Yemen, and increasing financial transfers and foreign aid, which strengthened the income balance. And remittances in Yemen.

Stability of the financial system

It played a role in stimulating economic growth, mitigating the impact of inflation, and enhancing the government’s ability to cover expenses from salaries and wages, which contributed to reducing the budget deficit, improving the stability of the financial system, and reducing reliance on financing the budget deficit from borrowing.
It has improved the performance of the most important sectors, such as the health sector, by covering the costs of medications needed for chronic diseases, in addition to expenses for treating cancer patients, in addition to supporting education and other key sectors, and covering the provision of oil derivatives to generate electricity.

Stimulating the Yemeni economy

The Kingdom had provided grants for oil derivatives to operate 80 electricity generation plants in all Yemeni governorates, which contributed to stimulating the Yemeni economy, stimulating economic growth, and raising the efficiency of the vital, productive and service sectors in Yemen.
Through the Saudi Development and Reconstruction Program for Yemen, the Kingdom also provided 263 development projects and initiatives implemented by the program in various Yemeni governorates, serving the Yemeni brothers in 8 basic and vital sectors: education, health, water, energy, transportation, agriculture and fisheries, and developing and supporting the capabilities of the Yemeni government. And development programmes.