Saudi Arabia to grant $1.2 Billion to Yemeni government, say Saudi officials

Saudi Arabia has approved a grant of $1.2 billion to the Yemeni government, as reported by two Saudi officials to Agence France-Presse on Tuesday. This comes at a time when the country's war-torn economy is facing a state of near-collapse. 

Yemeni and Saudi officials are expected to disclose details of the grant during a signing ceremony in Riyadh later on Tuesday. The officials, who spoke on the condition of anonymity as they were unauthorized to speak to the media, will shed light on the extent of the financial support provided. 

Since 2015, Riyadh has been leading a military alliance supporting the Yemeni government, which has its headquarters in Aden, in its war against the Houthi rebels allied with Iran, who control Sanaa and other areas in the impoverished country. 

Over two-thirds of Yemenis rely on aid to survive amidst a crippling economic crisis caused by the war, currency collapse, and restrictions on imports and foreign trade. 

Last year, Houthi drone attacks on government-controlled oil ports disrupted oil exports, the main source of revenue for the Saudi-backed authorities. 

UN Special Envoy for Yemen, Hans Grundberg, stated last month that the "economic war" between the warring parties has worsened the conflict, as the government struggles to fund basic services and pay its employees. 

Earlier this year, Saudi Arabia deposited one billion dollars into the central bank and helped establish a $600 billion fund for oil derivatives, in addition to contributing around $400 million to finance development projects. 

AFP