Saudi Arabia has announced an investment of over $500 million for development projects across Yemen, according to a statement from the Kingdom’s Defence Minister, Prince Khalid bin Salman. The announcement on Wednesday follows recent events where Saudi-backed forces repelled an offensive by separatist groups supported by the United Arab Emirates.
On the social media platform X, Prince Khalid detailed the launch of “development projects and initiatives in vital sectors at a cost of 1.9 billion riyals ($506 million)” that will span 10 Yemeni governorates.
These projects, managed by the Saudi Development and Reconstruction Program for Yemen (SDRPY), include the construction of Yemen’s first desalination plant, the restoration of the airport in Aden, the opening of a hospital on Socotra island, and the construction and equipping of 30 schools. An official from the program, which has been active in Yemen since 2018, confirmed the funds are for “new projects” in southern governorates where the UAE-backed Southern Transitional Council (STC) recently had an active presence.
Both Saudi Arabia and the UAE have been key members of the coalition fighting the Iran-backed Houthi movement, which took control of the capital Sanaa in 2014. However, an offensive launched by STC forces in December exposed significant rifts within the coalition.
The advance of UAE-backed forces into Hadramawt and Mahra provinces was halted by Saudi air strikes and a counter-offensive by pro-Saudi ground forces. Following this, the Yemeni government saw a dismissal of UAE-aligned ministers, and a declaration was issued uniting southern factions under Saudi command.
With the UAE’s role diminished, Saudi Arabia is now the primary power managing the various factions within the government. This expanded role includes overseeing a state weakened by over a decade of war and bearing the costs of reconstruction and paying forces under its command.
“This will all become the burden of Saudi Arabia,” noted Farea al-Muslimi, a Yemen expert at Chatham House.
Riyadh is also reportedly planning talks between the southern factions to reshape the political landscape.
