What's Happening?
Saudi Arabia has announced a financial aid package of approximately $368 million to support the internationally recognized Yemeni government based in Aden. This aid will be provided through the Saudi Development and Reconstruction Program for Yemen, aimed at bolstering the government's budget. The Yemeni administration has been struggling with a weak currency and high prices since the Iran-aligned Houthis ousted former President Ali Abdullah Saleh from Sanaa in 2014, leading to a prolonged civil war. The Saudi-led coalition has been involved in Yemen since 2015, supporting the government in Aden.
Why It's Important?
The financial support from Saudi Arabia is crucial for the Yemeni government as it grapples with economic instability and the challenges of a civil war. This aid is expected to help stabilize the government's finances, allowing it to pay public sector salaries and manage its budget more effectively. The ongoing conflict has split Yemen between the government in Aden and the Houthi administration in Sanaa, making international support vital for the government's survival and efforts to restore peace and stability in the region.
