The support came following directives by Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed Bin Salman. It also came in response to a request by the Yemeni government to help provide oil derivatives to operate more than 70 power generation plants across Yemen.

The new oil derivatives grant is an affirmation of Saudi Arabia’s keenness to achieve security, stability, and development for the Yemeni people, and an extension of previous grants totaling $4.2 billion, the latest of which was a grant of $422 million.

The grant was completed over a year and contributed to economic stability, enhancing the budget of the Yemeni government, raising the purchasing power of Yemeni citizens and improving security conditions.

It also contributed to improving the service sector, developing citizens' lives, increasing the rate of daily service hours for the operation of power plants, and ensuring the self-operation of power plants in Yemen.

The previous oil derivatives grant provided by the Saudi Development and Reconstruction Program for Yemen (SDRPY) contributed to partially reducing government spending in a way that feeds the Yemeni economy by reducing the burden of spending on the government.

It also doubled the production capacity, and reaching the target of 3119 GW/h during the operating period of the stations, in addition to covering the needs of power generating stations in Yemen.

It also contributed to limiting the depletion of the Central Bank of Yemen in foreign currency reserves to purchase oil derivatives to generate electricity from global markets, by reducing fuel selling prices from international prices for electricity generation by 79% for diesel fuel, and 94% for kerosene from May 2021 to April 2022.

Moreover, the previous oil derivatives grant provided electric power to the 760,000 subscribers of the General Electricity Corp., with an average consumption of 37 kilowatt-hours per subscriber, benefiting 9,800,000 people, thus contributing to raising the Public Electricity Company’s revenues and saving around 20% of the Yemeni government’s budget.

The new Saudi oil derivatives grant contributes to operating 70 power plants, that directly operate hospitals, medical centers, roads, schools, government facilities, airports, and ports. It will also enhance commercial and economic movement, which contributes to improving all aspects of life throughout Yemen.

SDRPY seeks, through the oil derivatives grant, to contribute to achieving the stability of the Yemeni economy, as well as to contribute to the rehabilitation of the infrastructure in the electricity sector in Yemen, and the restoration of basic services that have a direct impact on the Yemeni people.

The previous oil derivatives grant had a direct impact through an increase in the rate of operating average hours of electricity supply in several regions, as it increased in Aden by 20% from May 2021 to April 2022.

This boosted trade movement by increasing working hours in shops and markets and contributed to enhancing the reliability in the production of power and the stability of the electrical system.

The grant also contributed to reducing the difference between produced energy and sold energy by 21% during the supply duration of oil derivatives to power plants, especially in Aden.

The Saudi oil derivatives grant is part of the support of the SDRPY, which has offered 224 development projects and initiatives across Yemeni governorates to serve Yemenis in seven main sectors: education, health, water, energy, transport, agriculture and fishery, and building the capacity of government institutions, in addition to other development programs.