Saudi Arabia supports Yemen's economy with one billion dollars

The Arab Monetary Fund signed an agreement worth one billion dollars, sponsored by the Kingdom of Saudi Arabia, with the Yemeni government to revitalize its faltering economy.

The agreement signed in Riyadh seeks to develop a comprehensive economic, financial and monetary reform program to improve governance and transparency, expand and diversify production, and reduce unemployment and poverty.

Saudi Finance Minister Muhammad Al-Jadaan said that the program will work on

1- Developing the financial and banking sector in Yemen

2- Enhancing the role of the private sector

3- Promoting economic development in the long term.

4- Developing public resources.

5- Control and rationalize government spending

6- Improve efficiency

7- Rehabilitation of vital infrastructure in electricity, water and transportation services.

The priorities of the financial and banking sectors include developing a supervisory system to improve transparency and accountability and enhance services for small and medium enterprises, youth and women in rural areas. It will also seek to enhance flexibility in digital transformation and payment method.

The program says that the private sector is the primary engine of sustainable economic growth, and key in paving the way for further integration into the global economy, the influx of foreign investment, and the strengthening of international partnerships.

The Yemeni government has expressed interest in exploring opportunities for regional and international institutions to cooperate in support of Yemeni economic reform.

Saudi Arabia's sponsorship of the agreement is considered an extension of the economic support provided by the country to Yemen, The Kingdom granted the Central Bank of Yemen one billion dollars in 2012 and two billion dollars in 2018 to cover the import of basic food commodities.

From 2001 to 2022, Saudi Arabia topped the list of donors to Yemen, providing 30 percent of the total support.