The Kingdom of Saudi Arabia extends a billion US dollar to support the Republic of Yemen’s comprehensive economic, financial and monetary reform program, with technical assistance from the Arab Monetary Fund (AMF)
The program covers the period (2022-2025), and aims at establishing economic and financial stability in the Republic of Yemen, enhancing fiscal stability and the external position, rebuilding Yemeni institutions and supporting their governance and transparency, in order to enhance the macroeconomic environment to expand and diversify the productive base, support inclusive and sustainable economic growth, and create job opportunities. The program is expected to help put the Yemeni economy on a sustainable path, and support the course of economic and social development, while reducing unemployment and poverty rates.
The program focuses on reform package aiming at strengthening the fiscal position of the Yemeni government, developing the financial and banking sector, and creating an enabling environment to enhance the role of the private sector while scaling up its role in achieving sustainable economic development.
The reform priorities in the public finance sector include increasing domestic fiscal revenues, controlling and rationalizing government spending, enhancing public expenditure efficiency and governance while directing it toward urgent priorities, and rehabilitating vital infrastructure in the electricity, water and road sectors, in a manner that supports fiscal sustainability and enhances confidence in the Yemeni economy.
With respect to the financial and banking sector, the reform priorities include developing governance and banking supervision in a way that enhances transparency and accountability, enhancing financial inclusion to enable micro, small and medium enterprises, as well as targeted groups especially youth and women in rural areas, to have access to financial services, supporting digital financial transformation to enhance the flexibility of payment means, improving the banking sector infrastructure to enhance its resilience and support its ability to mobilize resources to meet the financing needs of the economy, in addition to achieving financial and economic stability.
The reform priorities also include developing the private sector to enhance its role as an engine for inclusive and sustainable economic growth, and creating job opportunities to improve living conditions and reduce unemployment and poverty rates, while enhancing further integration in the global economy, increased foreign investment flows and strengthened international partnerships.
The Yemeni government affirms its commitment to implementing this comprehensive program, with technical assistance from the Arab Monetary Fund, looking forward to the program opening wide areas for regional and international institutions and donors to scale up their support for economic reforms implemented by the Yemeni government.