Kingdom takes lead, vows $ 3.25 bn Yemen aid

Saudi Arabia will be giving additional financial support to Yemen amounting to $ 3.25 billion as part of its contribution to development projects that will be agreed upon by the Yemeni side in line with the transition plan submitted by the Yemeni government at the Friends of Yemen conference in Riyadh.
The pledge was announced yesterday by Saudi Foreign Minister Prince Saud Al-Faisal at the opening of the conference.
The high profile event, aimed at mobilizing more assistance and support of the global community, was attended by GCC countries, Jordan, Egypt, Algeria, Malaysia, China, Germany, France, Denmark, India, the United States, Japan, Turkey, Spain, Brazil, the United Kingdom, Russia, Korea, Australia, the Netherlands, Italy, Indonesia and major international organizations.
Speaking on the occasion, Prince Saud said that Yemen is currently facing a complicated and difficult situation in economic, humanitarian, political and security terms, dragging the country into an unprecedented economic and humanitarian crisis.
"In 2011, as a result of recent incidents, the situation has intensified the economic, social and security challenges in the Yemeni arena, which contributed to the sharp decline of economic activity and prevented a large part of the investment program as well as the freezing of aid and assistance from some donors," he said.
Therefore, the government of Yemen has prepared a phased program for the stability and development for the period 2012-13 as part of a short-term plan for restoring political, economic and social stability, Prince Saud elaborated.
He added: "In the interest of the Kingdom for the security and stability and Yemen's growth, Saudi Arabia will be giving $ 3.25 billion to Yemen.”
This will include support for all economic sectors and social and cultural development as well as finance and guaranteed exports to Saudi Arabia and deposit in the Central Bank of Yemen.
“On this occasion, I would like to pay tribute to the prominent role played by the Saudi-Yemeni Coordination Council in support of many projects and programs,” Prince Saud said, adding it was also worth noting that the Kingdom had provided to Yemen a grant at the London Donors Conference of $ 1 billion allocated for development projects through the Saudi Development Fund.
The minister went on to say that the Kingdom had given recently assistance to oil and electricity sectors and was expected to sign agreements for two projects, one in the electricity sector and the other in the field of health services, at a total cost of $ 105 million.
“I am pleased to announce the Kingdom's willingness to host the next donor conference, which we propose be held from June 27 to 30,” he added.
Yemeni Prime Minster Mohammed Basindawa headed the Yemeni delegation. He was accompanied by the Yemeni ministers of interior, planning and international cooperation and foreign affairs.
The US delegation was led by Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman. He said: "We are firmly of the belief that Yemen's and our success in stabilizing the Yemeni economic situation and overcoming the humanitarian crisis will be the single most important factor in determining ultimately whether the GCC Initiative and its vision for political transition succeeds or fails.
Bilaterally or through multi-donor efforts, the international community must partner with the government of Yemen and the Yemeni private sector to promote basic development programs, economic reform and the strengthening of both domestic and foreign direct investment opportunities in Yemen."
The Riyadh conference was held ahead of the Donors Conference to be held in London in June. Yemen and Saudi Arabia are coordinating efforts to invite international officials to the conference.
Basindawa expressed his thanks to the generosity of Saudi Arabia. He said that the horrific bombing in Sanaa on Wednesday, which killed and wounded hundreds of innocent people, required Friends of Yemen to stand behind the country.
He expressed his utmost thanks and gratitude to Custodian of the Two Holy Mosques King Abdullah and Crown Prince Naif, deputy premier and minister of interior.
A Yemeni source said that the conference would review a number of working papers and Yemen’s plans drawn up by ministries and relevant authorities. It indicated the working papers would cover political, economic and security issues.
Economic expert Mohammed Al-Maitami noted that the Friends of Yemen conference would not be confined to economy alone. “The political situation is crucial as well. The conference will focus on supporting the transitional government, the national dialogue, drafting a constitution, security, water, and other humanitarian issues regarding displaced people and refugees.”
He added: “The conference will enable the international community to renew its support for the transitional period and will be a great help in implementing the GCC initiative.”
A senior official of the six-nation Gulf Cooperation Council told the gathering that efforts to deliver desperately needed humanitarian relief were being "seriously hampered by the (political) crisis" in Sanaa. Aid efforts were "dependent on the restoration of stability at both the security and economic levels," said GCC Assistant Secretary-General for Humanitarian Affairs Abdel Aziz Al-Awisheq.
The UN World Food Program warned that nearly five million Yemenis, or a quarter of the population, face “serious food insecurity.”