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Thursday, Feb 05, 2026

Saudi Arabia Steps Up Political and Financial Campaign in Yemen After UAE Withdrawal

Riyadh deploys billions of dollars and political strategy to consolidate influence in southern Yemen following Abu Dhabi’s exit and an intensifying Gulf rivalry
Saudi Arabia has launched a concerted effort to assert control over Yemen’s political and military landscape after the United Arab Emirates withdrew its forces and ceased involvement in the country late last year.

The shift follows a dispute between Riyadh and Abu Dhabi triggered by Emirati-backed separatist advances in southern regions such as Hadhramaut and al-Mahra, which Saudi officials viewed as a direct threat to the kingdom’s security and broader anti-Houthi strategy.

In the wake of the UAE’s departure, Saudi Arabia is deploying substantial financial support to stabilise Yemen’s internationally recognised government and strengthen state institutions.

Officials involved in planning told Reuters that Riyadh is budgeting almost three billion US dollars this year to cover salaries for Yemeni military personnel and civil servants, including fighters who were previously paid by Abu Dhabi, and to underwrite essential public services.

This cash injection is part of a wider drive to unify disparate armed groups under a central command and reduce fragmentation that could be exploited by the Iran-aligned Houthi movement.

Riyadh’s approach combines ‘sticks and carrots’: alongside financial backing, Saudi authorities have engaged with southern separatist leaders with the implicit promise of greater autonomy or political recognition once conflict with the Houthis is resolved.

The kingdom also reshuffled Yemeni leadership in early January, dismissing the defence minister — a move officials described as necessary after perceived failures to oppose the separatist offensive.

The intensified Saudi role in Yemen represents a significant regional recalibration.

A fragile truce with the Houthis, in place since 2022, remains under strain, and the kingdom’s efforts to secure its southern flank reflect concerns that instability could disrupt its own domestic reforms and strategic interests.

Saudi officials have reportedly set an ambitious timeline for conflict resolution by the end of 2026, even as analysts caution that internal divisions, competing visions of Yemeni unity and longstanding economic challenges could prolong the process.

The shift also underscores a broader Gulf dynamic in which Riyadh and Abu Dhabi are recalibrating their regional roles.

Saudi Arabia’s deeper engagement in Yemen follows years of focusing inward on economic transformation and social modernisation, and reflects a determination to prevent neighbouring turmoil from undermining its security and development goals.
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