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Tuesday, January 20, 2026

Saudi Arabia grants fresh economic support to Yemen

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Yemen’s leaders are celebrating a fresh boost from Saudi Arabia as they tackle the country’s ongoing economic struggles. The Presidential Leadership Council (PLC) in Yemen has welcomed a new grant worth 1.38 billion Saudi riyals—around 368 million US dollars—to steady the fragile Yemen economy and push forward local reforms.

PLC chief Rashad Al-Alimi shared the news in a post on X, formerly Twitter, highlighting Saudi Arabia’s “strong commitment to the Yemeni people and their aspirations for stability, peace, and development.” He added that some of the funds will go toward running costs at the Prince Mohammed bin Salman Hospital in Aden, Yemen’s key southern port city.

Prime Minister Salem bin Buraik echoed the praise, saying the aid will strengthen the economy and protect the gains from recent government reforms.

Saudi Arabia’s foreign ministry explained that the support comes through the Saudi Program for Development and Reconstruction of Yemen (SPDRY). It aims to back the Yemeni government budget, cover petroleum subsidies, and keep essential public services running, according to reports from Xinhua news agency.

This help arrives at a tough time for Yemen. In Aden and other southern cities under government control, frustration is building as tens of thousands of public workers— including civil servants, teachers, and healthcare staff—have waited more than three months for their salaries. The delays are pushing families to the brink, with many struggling to survive.

Since the civil war erupted in 2014, Yemen’s economy has crumbled. Real GDP per capita has dropped by more than half, poverty rates have skyrocketed, and the country remains divided between rival groups. The currency has lost much of its value, leaving millions dependent on humanitarian aid.

Protests over the salary crisis have flared up recently in Aden, Taiz, and other government-held areas. Demonstrators have rallied outside government offices, shouting against corruption and urging quick payment of wages. Local activists and labor unions are even talking about strikes, warning that schools, hospitals, and other vital services could shut down.

Yemen’s Aden-based government admits the problem stems mainly from a severe cash shortage. Officials point to falling revenues, poor performance in some sectors, and agencies that haven’t sent funds to the central bank as key issues. As Yemen navigates its long-running civil war and economic woes, this Saudi aid offers a glimmer of hope amid the uncertainty.


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