Saudi Arabia has announced a significant $500 million economic support package for Yemen aimed at strengthening the war-torn country’s budget, stabilising its central bank and advancing long-term stability and development.

The funding, confirmed by Saudi authorities and international reporting, comes as part of Riyadh’s broader Saudi Development and Reconstruction Program for Yemen and reflects the kingdom’s commitment to assisting its southern neighbour recover from years of conflict and economic distress.

The package comprises a $300 million deposit into the Central Bank of Yemen to shore up foreign reserves, reduce currency volatility and improve macro-financial conditions, and a further $200 million contribution to help address gaps in the Yemeni government’s budget, easing pressures on public finances and enabling essential services to continue.

Saudi officials have emphasised that the support is designed to enhance food security, support wages and operating costs of institutions, and assist state efforts to implement economic reforms that could foster more sustainable growth.

Yemeni government representatives have expressed gratitude for the assistance, highlighting its role in strengthening government capacity and delivery of services to citizens.

The initiative builds on a string of previous Saudi contributions that have supported the Yemeni economy through deposits to the central bank and projects across key sectors such as education, healthcare, transportation and energy.

By focusing on both short-term financial stability and longer-term institutional development, Riyadh’s aid package seeks to help place Yemen on a more stable economic and social trajectory after years of civil conflict that have severely disrupted livelihoods, public services and government functions.