Saudi Arabia Announces SAR 1.9 Billion Development Package And New Fuel Grant For Yemen

Saudi Arabia has announced a new phase of support for Yemen through the Saudi Development and Reconstruction Program for Yemen, launching 28 development projects and initiatives worth SAR1.9 billion and a fresh petroleum derivatives grant to operate power plants in all Yemeni governorates, under directives from King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, and with oversight from Minister of Defense Prince Khalid bin Salman bin Abdulaziz.

The new support package targets key sectors such as energy, health, education, transport, water, and governance, and is coordinated with the Yemeni government and local authorities in the governorates of Aden, Hadramout, Al-Mahrah, Socotra, Marib, Shabwah, Abyan, Al-Dhale’e, Lahij, and Taiz, complementing 27 ongoing projects scheduled for 2026–2027 and raising the total number of completed SDRPY projects and initiatives since 2018 to 240.

The 28 newly announced SDRPY Yemen projects are designed to improve basic services, strengthen security and stability, and support economic activity, combining large infrastructure works, health and education facilities, energy schemes, and institutional projects such as a government and presidential complex in Aden, while also linking different governorates through upgraded roads, airports, and power networks that can serve both communities and commercial sectors.

The new petroleum derivatives grant is intended to improve the operation of power plants and reinforce the reliability of electricity supply, supporting hospitals, health centres, schools, roads, airports, ports, and other public and private facilities, while also supporting manufacturing activity and trade flows across all targeted Yemeni governorates that depend on stable power services for daily operations.

Health-related SDRPY Yemen projects form a major part of the package, including the continued operation of Prince Mohammed bin Salman Hospital in Aden for three more years to increase health sector capacity, the start of operating King Salman Medical and Educational City in Al-Mahrah after construction and equipping works, and the construction of new hospitals in several governorates to raise access to medical care.

Specific health projects include operating Socotra Hospital to secure continuity of services, constructing and equipping Sabah Hospital in Abyan, operating Shabwa Hospital, establishing Al-Ain Rural Hospital in Taiz with full equipment, operating Al-Mokha Hospital in Taiz, creating Al-Dhale’e Rural Hospital, and setting up a maternal and child health centre along with a maternity emergency centre in Ras Al-Ara, in addition to building Hadramout University Hospital.

Education and training SDRPY Yemen projects

Education-focused SDRPY Yemen projects include support for higher education institutions, such as establishing two colleges of computer science and information technology at Hadramout and Seiyun universities, creating a College of Applied and Health Sciences within King Salman Medical and Educational City in Al-Mahrah, and building a fully equipped girls’ educational complex in Marib to improve learning environments and expand enrolment opportunities.

In Socotra, SDRPY is setting up a technical institute and a college of education, together with several model schools, while further educational works across Hadramout, Aden, Lahij, Abyan, Al-Dhale’e, Shabwah, and Socotra include the construction and equipping of 30 schools at a rate of 10 schools annually, combined with teacher training programmes in Al-Dhale’e to raise teaching skills and overall educational performance.

Infrastructure and transport SDRPY Yemen projects

Transport and infrastructure are central elements of SDRPY Yemen projects, with Aden seeing the second and third phases of Aden Airport Rehabilitation, covering runway reconstruction and the installation of navigation and communications systems, along with construction, expansion, and upgrading of the coastal road, while Hadramout gains rehabilitation and upgrading of the Al-Abr–Seiyun Road to improve connectivity and safety.

In Marib, SDRPY is beginning the final phase of the Al-Abr (Ghuwayrban–Al-Mukhtam) Highway expansion and rehabilitation project, after completing two earlier phases totaling 90 kilometres, and in Aden the programme is also implementing the government headquarters and presidential complex project, intended to help Yemeni government institutions perform their roles and support the broader development path in the country.

Economic and sectoral SDRPY Yemen projects

Energy and economic support within SDRPY Yemen projects include the construction of a 30-megawatt power plant in Taiz to enhance electricity capacity, while the petroleum derivatives grant backs the operation of power plants nationwide, which in turn supports industrial activities, commercial transport, and service continuity for airports, ports, and roads, and encourages investment by improving service reliability for communities and businesses.

Additional sectoral support includes an agricultural value chain programme in Shabwah aimed at strengthening the agricultural sector, projects in Socotra such as building a Custodian of the Two Holy Mosques Mosque and several model schools, and continued operation of major medical and educational hubs like King Salman Medical and Educational City and Prince Mohammed bin Salman Hospital, reflecting an integrated approach across Yemen’s key governorates.

Through this new package of 28 initiatives, alongside 27 projects already under implementation for delivery in 2026–2027 and 240 completed projects and initiatives since 2018, the Saudi Development and Reconstruction Program for Yemen continues to expand its work across health, education, infrastructure, energy, and institutional support, aiming to improve daily services, strengthen stability, and assist the Yemeni people in multiple governorates.

With inputs from SPA