Saudi Fund grants $115 million for development projects

World Bank grants Yemen $50 million soft loan

Yemeni ministers express gratitude for Saudi largesse.

The World Bank has granted Yemen $50 million as a soft loan to support the general budget, said Abdul-Karim al-Arhabi, Minister of Planning and International Cooperation, upon his return to Sana’a following a short visit to Egypt. “We agreed with World Bank officials in Egypt that the World Bank would grant Yemen $50 million as a soft loan, which would be exploited for institutional reforms, as part of the implementation of the National Reforms Agenda,” Arhabi said.

In related news, the Saudi Fund for Development earmarked some $115 million for development projects in Yemen, as a grant. It did this during a session of the committee of the Saudi-Yemeni Coordination that was held last week in Riyadh, said Abdullkarim al-Arhabi, the Deputy Prime Minister for Economic Affairs and Minister of Planning and Cooperation, Chairman of the Yemeni contingent of the committee organized to follow up on the decisions of the Saudi-Yemeni Coordination council.  The two countries agreed to allocate $75 million to finance the Public Works Project; $20 million for the establishment of basic education schools; and also $20 million to complete funding for the Central Hospital of Hodeida, he said.

Saudi Arabia is Yemen’s foremost supporter. Its support was crucial to the success of the donors’ conference in London.  It presented Yemen with a billion dollars as grant to finance the investment program of the third five-year plan in Yemen. Saudi investors were also key to the success of a recent conference held to explore investment opportunities in Yemen. They represented around 80 percent of the participants in the conference, Arhabi said.  He explained that the volume of trade exchange between the two countries reached more than 3 billion dollars.

“We continue to aspire for more in the area of trade,” he said.  This high volume of trade reflects the evolution of Yemeni-Saudi relations, he said.  Saudi Arabia is a primary economic partner and the main trading partner of Yemen, which is reflected in the volume of bilateral trade, he said.  “We signed during the conference of exploring investment opportunities agreements on investments in huge projects which would create jobs and reduce unemployment and alleviate poverty,” Arhabi said.  

Arhabi said that the two countries should increase investment in each other, and that the Saudi authorities should allow Yemeni workers to work in that country.  This would create many job opportunities, and would also lead to the flow of goods and products between them.   “Saudi Arabia in particular benefits from Yemen, including their full production capacity and increasing the volume of trade exchange,” said Dr. Hashim bin Abdullah Yamani, Minister of Commerce and Industry, Chairman of the Saudi contingent of the committee of the Saudi-Yemeni Coordination Council. 

“The Yemeni exports of agricultural products find good markets in Saudi Arabia, especially after the agreement between the two to create procedures to create agricultural products which apply the specifications and standards of gulf countries.”

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