Saudi Arabia gives $500 mln to ease Yemeni government’s budget deficit

Saudi Arabia : Saudi Arabia will give war-riven Yemen’s internationally recognized government $500 million to pay salaries and other expenses, a Saudi official said Friday.

The sum is part of the $1.2 billion approved last year to prop up Yemen’s government, which was forced out of the capital Sanaa by Iran-backed Houthis in 2014.
The money was allocated “to address the Yemeni government’s budget deficit,” the official told AFP. Saudi Arabia also made payments of $250 million in February and in August last year.

“The funds aim to support salaries, operational expenses, enhance food security and assist economic reforms, reflecting (Saudi Arabia’s) commitment to Yemen’s security, stability and prosperity,” the official said.

Although a UN-brokered ceasefire has sharply curtailed fighting since April 2022, the region’s poorest country remains volatile.

The Houthis are currently locked in escalating hostilities with Israel, with repeated missile and drone attacks prompting Israeli air raids on multiple targets on Thursday.
Months of Houthi attacks on Red Sea shipping, in solidarity with Palestinians during the Gaza war, have also brought reprisal strikes from the United States and Britain.