In light of the deteriorating economic situation in Yemen, the Kingdom of Saudi Arabia was scheduled to provide a deposit worth one billion Saudi riyals to support the Central Bank of Yemen in Aden, as part of joint efforts to enhance economic stability in the liberated areas. However, questions arose about the delay in implementing this support, which raised speculation about a Saudi retreat from providing the deposit or the existence of conditions and obstacles preventing its implementation.

Yemen is suffering from a stifling economic crisis due to the war that has been going on for years, as the Yemeni riyal witnessed an unprecedented deterioration against foreign currencies, which led to a significant rise in prices and burdened citizens. In this context, Saudi Arabia pledged to provide financial support to the Central Bank in Aden to enhance the stability of the Yemeni currency, but implementation remained a matter of controversy and delay.

Potential challenges and conditions

Several reports indicate that the delay in submitting the Saudi deposit may not be a complete decline, as much as it is linked to conditions and procedures that require implementation before the amount is disbursed. The most prominent of these conditions, according to Al-Amina sources:

1. Guarantees for financial and administrative reforms:

The Saudi side calls for financial and administrative reforms within the Central Bank of Yemen, including combating corruption and ensuring transparency in money management.

2. Consolidation of financial institutions:

Saudi Arabia requires progress in unifying financial institutions between the conflicting Yemeni parties to ensure that funds are not used ill-consideredly or to serve specific parties.

3. International oversight:

A Saudi demand emerges to activate the role of international oversight to ensure that the deposit is used correctly, enhances the stability of the Yemeni economy and limits the deterioration of the currency.

In addition to the conditions, the deposit faces other obstacles, the most prominent of which are:

The unstable political situation: 

Divisions between the Yemeni parties may hinder the achievement of real reforms, which increases the hesitation of the supporting parties.

Weak administrative capabilities in the Central Bank: There are challenges related to efficiency and the ability to manage funds effectively in light of the continuing war.

Despite the delay, Saudi Arabia did not issue any official statement indicating its withdrawal from providing the deposit, which leaves the door open to the possibility of implementing financial support if the required conditions are met. The Kingdom has repeatedly affirmed its continued support for Yemen's political and economic stability, which reinforces the hypothesis that the delay is linked to concerns regarding how the funds will be used.

Observers said that the delay in Saudi Arabia providing the billion-riyal deposit to the Central Bank of Yemen in Aden appears to be the result of a set of conditions and obstacles rather than a retreat from the commitment. However, the future of the deposit remains linked to the Yemeni government’s ability to implement the required reforms and ensure optimal use of financial support to achieve real economic stability.