Saudi Arabia provides SAR224m funding boost to Yemen state budget
The latest Saudi funding will support Yemeni government salaries and operating expenses as the country faces mounting economic pressures and renewed conflict
05 October, 2026
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Saudi Arabia has provided more than SAR224m ($59.7m) in new financial support for Yemen’s state budget, as the kingdom continues efforts to bolster the country’s economic stability and government finances.
The latest instalment, provided through the Saudi Development and Reconstruction Program for Yemen (SDRPY), will be used to cover government operating expenses and salaries, the Saudi Press Agency (SPA) said.
The funding, provided under directives from Saudi Arabia’s leadership, is aimed at ensuring the regular flow of government funds and salary payments.
Saudi authorities said the support would also help improve the efficiency of fiscal policy, strengthen household purchasing power and incomes, and stimulate commercial activity.
Saudi support for Yemen exceeds $12.6bn
Saudi Arabia said its development and economic interventions in Yemen totalled more than $12.6bn between 2012 and 2026.
The assistance has included deposits and grants to the Central Bank of Yemen aimed at supporting fiscal balance and broader macroeconomic stability.
According to SPA, the measures have helped strengthen the ability of Yemeni state institutions to continue delivering public services while easing economic and social pressures.
SDRPY has so far implemented 300 development projects and initiatives across eight sectors in Yemen, focusing on infrastructure, public services, institutional capacity and employment.
The latest support comes as Yemen continues to face severe economic pressures after more than a decade of conflict.
The World Bank said in May that Yemen’s economy contracted by 1.5 per cent in 2025 and is projected to shrink by a further 0.5 per cent in 2026. Oil exports remain blocked, while falling revenues have constrained government spending on salaries and essential services.
Nearly three-quarters of Yemen’s population is estimated to live below the poverty line, according to the World Bank.
Yemen conflict escalates
The financial support also comes amid a renewed escalation in Yemen’s conflict and hostilities involving the Houthis and Saudi Arabia.
On Sunday, Yemen’s internationally recognised government announced the start of military operations aimed at retaking territory controlled by the Houthis and extending state authority across the country.
The announcement followed a series of attacks and counter-attacks in recent weeks.
On Saturday, the Houthis said they had targeted an Aramco facility in Riyadh with ballistic missiles and drones.
The Houthis had also previously claimed attacks on Aramco facilities in Yanbu. Saudi Arabia said it intercepted six ballistic missiles fired towards Taif and the Yanbu area, but did not report damage to Aramco facilities.
Separately, the Saudi-led coalition said last week that the Houthis had attacked a power distribution station in Medina that supplies electricity to the Prophet’s Mosque, putting one transformer out of service without affecting the wider electricity network. The Houthis denied responsibility for the attack.
The renewed hostilities mark the most serious escalation between Saudi Arabia and the Houthis since a UN-brokered truce in 2022 largely halted cross-border attacks.





















