Saudi Arabia giving Yemen $1.2 billion to bolster economy, security
Yemen's Saudi-backed government has been grappling with a weak currency and high prices, despite a lull in fighting with the Iran-aligned Houthi rebels
Saudi Arabia will grant Yemen’s presidential council $1.2 billion to help the country’s struggling economy, a Saudi source said Tuesday.
The Saudi-backed government in Yemen has been grappling with a weak currency and high prices despite a lull in fighting with the Iran-aligned Houthi rebels over the past year. In Aden and the country’s south, the situation has particularly worsened since several Houthi drone attacks targeted oil tankers, stopping the government from exporting crude oil from there.
The support from Riyadh will contribute to strengthening security and preventing a return of military clashes, the Saudi source told Reuters, adding: “It would also encourage dialogue on all sides to reach a comprehensive political solution to the Yemeni crisis.”
A Yemeni official said the donation would be used to pay government wages, fuel for power plants, and food imports.
Yemen's war is seen as one of several proxy battles between Iran and Saudi Arabia, which agreed to re-establish ties earlier this year. The Houthis ousted the Saudi-backed government from Sanaa in 2014 and have de facto control of northern Yemen. They say they are rising up against a corrupt system and foreign aggression.
They have been fighting against a Saudi-led military alliance since 2015 in a conflict that has killed tens of thousands and left 80 percent of Yemen's population dependent on humanitarian aid.
In April, Saudi and Omani officials held peace talks with the Houthis as Riyadh seeks a permanent ceasefire to end its military involvement in the country's long-running war. But the talks stalled over a mechanism to pay wages for public servants from oil revenues, rebuilding efforts, and a timeline for foreign forces to exit the country.