Saudi-Yemeni Agreement to Enhance.....

Saudi-Yemeni Agreement to Enhance Electricity Sustainability and Boost Local Economy

​Saudi Ambassador to Yemen, Mohammed Al Jaber, announced the signing of a strategic agreement between the Saudi Development and Reconstruction Program for Yemen (SDRPY) and the Yemeni Ministry of Electricity. The agreement focuses on purchasing fuel and petroleum derivatives from the national company "PetroMasila" to operate over 70 power plants across Yemen.

​Key Economic & Developmental Highlights:

​Empowering Local Industry: Strengthening the role of Yemeni national companies within the energy supply chain.

​Monetary Stability: The grant aims to reduce pressure on foreign currency reserves required for fuel imports, supporting the stability of the Yemeni Rial.

​Economic Stimulation: Ensuring a stable power supply for commercial and service facilities to maintain economic activity.

​Social Impact: Improving basic service delivery and alleviating the daily living burdens on citizens in various governorates.

The funding is provided by the Kingdom of Saudi Arabia through the Saudi Development and Reconstruction Program for Yemen (SDRPY), as part of the ongoing Saudi oil derivatives grant to support the energy sector.

​Funding Amount:

The total value of this intervention within the current package exceeds $200 million USD (as part of broader allocations for fuel and service support), aimed at covering operational needs to ensure continuous service during peak periods.

​Beneficiary Areas:

The agreement targets power plants in the liberated governorates, primarily:

​Aden, Hadramout (Coast and Valley), Shabwa, Abyan, Al-Mahra, Lahj, and Marib (specifically Marib Al-Wadi).

​More than 70 power plants across these regions will benefit from this support.

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​Announcement/Signing Date: Today, Wednesday, January 21, 2026.

​Implementation Period: Fuel supply and operations under this agreement commence immediately, with a timeline covering the first quarter and half of 2026 to ensure stability for the upcoming summer season.