Saudi Arabia Approves $59.7m Budget Support For Yemen Government

Saudi Arabia has approved 224 million Saudi riyals, or about $59.7 million, in budget support for Yemen’s internationally recognised government. Saudi Ambassador Mohammed al-Jabir said the funding was requested by Yemen and would help strengthen government financial flows, fiscal policy and the purchasing power of Yemeni citizens.

Saudi Arabia has approved 224 million Saudi riyals, equivalent to about $59.7 million, in budget support for Yemen’s internationally recognised government as fighting with the Houthi movement continues.
The funding is intended to help Yemen’s government maintain its financial operations and strengthen its ability to meet economic and public-sector obligations.

FUNDING REQUESTED BY YEMEN GOVERNMENT

Saudi Ambassador to Yemen Mohammed al-Jabir said the financial support was requested by Yemen’s government.
In a post on X, al-Jabir said the grant would provide additional support to Yemen’s public finances at a time when the country continues to face severe economic and security challenges.
The funding is part of Saudi Arabia’s broader support for Yemen’s internationally recognised authorities.

MONEY TO SUPPORT GOVERNMENT FINANCES

According to al-Jabir, the grant is intended to improve the regular flow of government finances and strengthen the effectiveness of Yemen’s fiscal policy.
The funding is also expected to contribute to maintaining the purchasing power of Yemeni citizens, according to the Saudi ambassador.
Yemen has faced prolonged economic difficulties, with years of conflict affecting government revenues, public services and living conditions.

SUPPORT COMES AMID CONTINUING FIGHTING

The latest financial assistance comes as intense fighting continues between Yemen’s internationally recognised government and the Iran-aligned Houthi movement.
The conflict has divided Yemen and contributed to a prolonged humanitarian and economic crisis.
Saudi Arabia has supported Yemen’s internationally recognised government during the conflict and has provided financial and other forms of assistance as efforts continue to address the country’s instability.

ECONOMIC PRESSURE REMAINS A MAJOR CHALLENGE

The Yemeni government faces pressure to maintain salaries, public services and other government operations despite limited resources.
The Saudi funding is therefore intended to help stabilise government finances and ensure that financial flows continue.
Its impact on the wider Yemeni economy will depend on how the funds are managed and on developments in the country's broader political, security and economic situation.