Saudi Arabia Injects $346 Million to Stabilize Yemen's Economy

Alanbatnews -

Saudi Arabia has deposited 1.3 billion Saudi Riyals ($346 million) into Yemen's Ministry of Finance to address the country's budget deficit, according to an agreement signed between the Saudi Development and Reconstruction Program for Yemen (SDRPY) and the Yemeni government.

The agreement, aimed at covering operational expenses and salaries, underscores Saudi Arabia's commitment to bolstering financial governance and transparency in Yemen through institutional cooperation.

The infusion of funds is expected to enhance the Yemeni government's ability to meet its financial obligations and support ongoing economic reforms, fostering sustainable stability and improving living standards.

The support will also enable Yemeni institutions to continue providing essential services, alleviate economic pressures, and bolster foreign exchange reserves, contributing to overall financial equilibrium and macroeconomic stability.

The agreement was formalized by Yemeni Finance Minister Marwan bin Ghanem and Saudi Ambassador Mohammed Al Jaber, who serves as the General Supervisor of the SDRPY.

This economic support is part of a broader series of economic and developmental initiatives by Saudi Arabia, including deposits and grants to the Central Bank of Yemen, grants for oil derivatives, and development projects through the SDRPY, all of which are aimed at fostering economic recovery in Yemen.

Since mid-2021, the SDRPY has also focused on building institutional capacity within the Yemeni Ministries of Planning and International Cooperation and Finance, enhancing the skills of Yemeni personnel and enabling government entities to better assess their needs and improve performance.

The SDRPY contributes to building and developing governmental capabilities at institutional and technical levels by transferring expertise and developing administrative and technical competencies across various sectors.

Strengthening governmental institutions is seen as a crucial step in promoting stability and stimulating economic growth in Yemen.