Saudi Arabia grants fresh economic support to Yemen

Aden (Yemen), Sep 21 (IANS) Yemen's Presidential Leadership Council (PLC) has welcomed new Saudi economic support worth 1.38 billion Saudi riyals (about 368 million US dollars) to help stabilise the country's fragile economy and advance local reforms.

PLC chief Rashad Al-Alimi said in a statement posted on social media platform X on Saturday (local time) that the grant reflects Riyadh's "strong commitment to the Yemeni people and their aspirations for stability, peace, and development," noting that part of the funds will cover operating costs of the Prince Mohammed bin Salman Hospital in Aden.

Yemen's Prime Minister Salem bin Buraik also hailed the grant, saying it would reinforce the economy and safeguard the progress achieved under government reforms.

Meanwhile, Saudi Arabia's foreign ministry said the grant, provided through the Saudi Program for the Development and Reconstruction of Yemen (SPDRY), will support the Yemeni government budget, petroleum subsidies, and key public services, reports Xinhua news agency.

The new grant comes amid growing frustration in Aden and other southern cities controlled by the Yemeni government, where tens of thousands of public employees have gone more than three months without salaries.

Since the outbreak of civil war in 2014, Yemen's economy has collapsed, with real GDP per capita plunging by more than half and poverty rates soaring. The conflict has split the country between rival administrations, devalued the currency, and left millions reliant on humanitarian aid.

Additionally, according to a recent report in Xinhua news agency, in Yemen's southern port city of Aden and other neighbouring cities, frustration is mounting as tens of thousands of employees have been experiencing months-long salary delays.

The postponement of payments is forcing numerous families of civil servants, teachers, and healthcare workers to the edge of survival.

In recent weeks, protests over financial uncertainty have spread to Taiz and other government-controlled cities. Demonstrators gathered outside government buildings, chanting slogans against corruption and demanding immediate payment of wages.

Several local activists and members of labour unions have called for strikes, warning that essential services may grind to a halt.

The Yemeni government, based in Aden, recognises the ongoing crisis and attributes it primarily to a severe liquidity shortage. Local officials have reported that revenue collections have declined, citing weak performance and the failure of certain agencies to transfer funds to the central bank.

--IANS

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