As Yemen‘s economic crisis deepens amid a years-long civil war, Saudi Arabia has stepped in wiht a substantial $368 million aid package directly targeting Yemeni citizens.The injection of funds,announced in September 2025,aims to address a critical revenue shortfall-estimated at $3 billion since 2022-stemming from Houthi attacks disrupting vital oil exports,wich previously comprised 70% of the nation’s income.This direct financial assistance signals a broadening of Saudi Arabia’s role in supporting the fragile nation and comes as the internationally recognized government struggles to maintain economic stability.
Saudi Arabia is directly providing financial assistance to citizens in Yemen, injecting $368 million into the country’s struggling economy. The move, announced in September 2025, aims to alleviate a severe economic crisis exacerbated by ongoing conflict and disruptions to oil exports. The intervention highlights the Kingdom’s deepening involvement in stabilizing its southern neighbor amid a complex geopolitical landscape.
The Saudi government is disbursing 20,000 Saudi Riyals (approximately $5,333 USD) directly to individuals in southern Yemen as part of the aid package, totaling 1.38 billion Saudi Riyals. A significant portion of the funds – $90 million – was deposited directly into the accounts of Yemen’s central bank in Aden in an effort to immediately unlock frozen salary payments for four months.
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Yemen is facing a staggering $3 billion revenue shortfall, triggered by the suspension of oil exports since October 2022 due to attacks on ports by Houthi forces. Oil revenues previously accounted for 70% of the country’s public income. This financial strain comes as the country continues to grapple with a civil war that began in 2014 with the Houthi takeover of Sanaa.
Rashad al-Alimi, president of Yemen’s Presidential Leadership Council, praised the Saudi initiative, calling it “a fundamental pillar for bolstering financial stability” amidst the ongoing conflict. “This step is a fundamental pillar for bolstering financial stability,” al-Alimi stated.
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The situation is further complicated by a fractured banking system, with separate central banks operating in Aden and Houthi-controlled Sanaa. This division has contributed to market stagnation and a sharp devaluation of the Yemeni Rial, which currently trades at 2,830 to the US dollar. The development underscores the challenges of economic recovery in a country deeply divided by conflict.
To ensure the aid reaches intended recipients, the central bank in Aden issued a formal circular in August 2025 outlining procedures for disbursement, emphasizing national responsibility during these exceptional circumstances.
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