When Riyadh unveiled a new SR 1.3 billion ($346.6 million) package on Wednesday to help Yemen’s government budget, salaries, and operational expenditures, it was more than just a cash gesture. It reinforced a long-standing policy: using diplomacy to stabilize the economy.
The world has been paying attention to Saudi Arabia’s military and humanitarian work in Yemen for a long time. But its economic role through direct budgetary support, deposits, and large construction projects has also been very important in shaping the country’s shaky path to recovery.
The latest aid shows that Riyadh believes that long-term political and security success depends on fiscal stability.
Over the past few years, the Kingdom has launched many economic and humanitarian projects. Project Masam, a Saudi-funded demining effort that started in June 2018 under KSrelief and with the help of Yemen’s Executive Mine Action Center, has removed more than 450,000 explosive devices.
In September 2025, KSrelief and the UN migration agency IOM started two $4.45 million projects. One was to replace expensive water trucking in Ma’rib with permanent water infrastructure, while the other was to fix up schools in Aden, Lahj, and Taiz for areas devastated by conflict.
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