Saudi funding of one billion dollars was allocated to reform the Yemeni economy in 3 years
English - Wednesday 22 February 2023 الساعة 03:27 pm
Aden, NewsYemen, exclusive:
The Kingdom of Saudi Arabia deposited one billion dollars in the account of the Central Bank of Yemen and the president’s residence, the capital, Aden, allocated for three years, to help the government raise the capabilities of economic institutions and efficiently collect resources, according to a statement published by the Saudi “SPA” agency, on Tuesday.
But will Saudi financial support succeed this time in reforming the battered Yemeni economy in light of the obstacles to economic, financial and monetary reform, which are expanding every day, and are being adopted by hostile parties and others at the top of the pyramid of power, or will it open the way for the release of new funds that flow into the arteries of the weak economy?
International reports and economic information confirm that Saudi Arabia has remained, during the past three years, dissatisfied with the Yemeni government's failure to make any progress with regard to improving its internal capacity and managing Saudi funds in the economy.
In 2018, Saudi Arabia deposited more than one billion and 200 million dollars in the Central Bank of Yemen, which ran out at the end of 2019. Mismanagement of the deposit and the increase in waste and corruption caused a decline in Saudi Arabia’s willingness to provide continuous cash financing to Yemen.
Reports indicate that Saudi Arabia took a new path in late November to support the Yemeni economy by launching a comprehensive economic, financial and monetary reform program, which is technically supervised by the Arab Monetary Fund. This reform program, which costs one billion dollars, covers the period 2022-2025.
According to reports, the main objective of the reform program launched by Saudi Arabia to support the Yemeni economy is to lay the foundations for its economic, financial and monetary stability, in addition to strengthening the state's public finances and external position, rebuilding its institutions, and enhancing its management and transparency.
In addition, the program seeks to achieve a number of sub-goals, the most prominent of which are the following: Promoting comprehensive and sustainable economic growth and job creation, which leads to putting the Yemeni economy on a more sustainable path, advancing economic and social development, and reducing unemployment and poverty rates.
As well as strengthening the financial position of the Yemeni government, developing the financial and banking sector, creating an enabling environment to enhance the role of the private sector, and involving it in the process of sustainable economic development.
The program included a package of economic reform priorities, including: reforming the state's public finances, developing its own public resources, controlling and rationalizing government spending, enhancing its efficiency and governance, and directing it to urgent priorities.
In addition to the rehabilitation of vital infrastructure in the sectors of electricity, water and roads, and the development of the private sector to assume its position as a major driver of comprehensive and sustainable economic growth and the creation of productive job opportunities.
In the financial and banking sector, the program seeks to develop a system of banking governance and supervision to enhance transparency and accountability, enhance financial inclusion, and support digital financial transformation.
In conclusion, the commitment of the Yemeni government to the comprehensive economic reform program supported by the Arab Monetary Fund in its implementation represents a fundamental pillar in its direction towards resolving the daily living crises that the Yemeni citizen suffers from.
