Saudi fuel grant to Yemen will address power cuts, save millions of dollars, officials say

The Saudi donation came just in time as the Yemeni government was frantically searching for funds to buy fuel to keep power stations functioning. (AFP/File)
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Updated 01 April 2021
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Saudi fuel grant to Yemen will address power cuts, save millions of dollars, officials say

  • Mainly due to a chronic shortage of fuel, power cuts in some Yemeni cities, including the port city of Aden, currently reach 18 hours a day

AL-MUKALLA: The $422 million Saudi fuel donation for power stations in Yemen would save millions of dollars and help reduce long power cuts that have been blamed for fueling unrest in hot and humid Yemeni cities, officials and analysts said on Wednesday.

Anwar Mohammed Kalshat, Yemen’s minister of electricity, told Arab News that the Saudi donation came just in time as the Yemeni government was frantically searching for funds to buy fuel to keep power stations functioning.

“This is a big boost to the power sector and would significantly stabilize electricity services. It would alleviate the suffering of the people during these days and in summer,” the minister said, thanking the Saudi leadership for standing by Yemenis during the current “difficult times.”

“We would like to thank our brothers in Saudi Arabia for this support and donation,” Kalshat said.

Shortly after Saudi Crown Prince Mohammed bin Salman announced the grant, the Yemeni riyal began rebounding against the dollar and other hard currencies.

Mainly due to a chronic shortage of fuel, power cuts in some Yemeni cities, including the port city of Aden, currently reach 18 hours a day.

The Yemeni government has long complained that fuel bills for power stations consume the nation’s meager revenues and the country is unable to fund vital projects in other important sectors such as health and education.

In September last year, Aden Gov. Ahmed Hamid Lamlis said that local authorities in Aden spent more than $1 million a day on buying fuel for power stations. The Saudi fuel donation will also stabilize fuel supplies to oil stations across the country and end long queues outside oil stations, Yemeni officials said.

Khaled Salman Al-Akbari, director of the Yemeni Oil Company in Hadramout, a government body responsible for importing fuel for power grids and the local market, told Arab News that supplying local power stations with the Saudi-funded fuel would alleviate pressure on the Yemeni company and help divert fuel to the local market.

The shortage of oil has led to unrest and long queues outside oil stations in Yemen.




Shortly after Saudi crown prince announced the grant, the Yemeni riyal began rebounding against the dollar. (SPA)

“This is a big relief to the Yemeni people in all provinces and to the Yemeni company that has been placed under huge pressure to supply power stations and the local market with fuel,” Al-Akbari said, noting that the funds saved from fuel bills would be allocated to vital projects.

Long power cuts in the Yemeni cities, mainly in extremely hot and humid cities such as Aden and Al-Mukalla, have triggered unrest and large demonstrations over the past several years.

On Tuesday, a protester was killed when security forces in Hadramout’s Mayfa used force to disperse crowds of angry people who blocked a road to demand electricity.

The killing of the protester sparked outrage in the province, prompting the governor of Hadramout to ban large gatherings to contain the unrest.

In Aden, the interim capital of Yemen, hundreds of people have taken to the streets to demand that the government import services, including electricity.

Yemen political analysts believe that the stabilization of the electricity service will ease growing anger against the government due to crumbling basic services.

Saleh Al-Baydani, a Yemeni political analyst, advised the government to “rationally” benefit from the Saudi donation and to find sustainable solutions to long power cuts and other problems in its territories.

“These demonstrations and tension in the streets would naturally diminish if citizens saw a tangible improvement in the (electricity) service,” Al-Baydani said.

Following the Saudi grant, the Yemeni riyal began to rebound against the dollar and other hard currencies.

The Yemeni riyal, which had dropped greatly over the past couple of months, recovered against the dollar, reaching 850 on Wednesday compared to 880 on Tuesday.

Yemeni economists said that the Saudi grant would curb the growing demand for the dollar by fuel and goods traders, the main reason behind the fall of the riyal.

Mustafa Nasr, director of the Economic Media Center, told Arab News that demand for the dollar would temporarily decrease during the distribution of the Saudi grant as the country would not import much fuel.

“One of the reasons for the fall of the riyal is buying hard currencies from the market for importing fuel. The injection of almost half a billion dollars from the Saudi grant would ease the demand for hard currency,” Nasr said.

“But this is a temporary solution to the problem. The government should look for sustainable solutions to the devaluation of the currency such as resuming exports,” he said.


A Kurdish-majority neighborhood in Syria recovers from clashes with hope for the future

Updated 8 sec ago
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A Kurdish-majority neighborhood in Syria recovers from clashes with hope for the future

ALEPPO: A month after clashes rocked a Kurdish-majority neighborhood in Syria ‘s second-largest city of Aleppo, most of the tens of thousands of residents who fled the fighting between government forces and the Kurdish-led Syrian Democratic Forces have returned — an unusually quick turnaround in a country where conflict has left many displaced for years.
“Ninety percent of the people have come back,” Aaliya Jaafar, a Kurdish resident of the Sheikh Maqsoud neighborhood who runs a hair salon, said Saturday. “And they didn’t take long. This was maybe the shortest displacement in Syria.”
Her family only briefly left their house when government forces launched a drone strike on a lot next door where weapons were stored, setting off explosions.
The Associated Press visited the community that was briefly at the center of Syria’s fragile transition from years of civil war as the new government tries to assert control over the country and gain the trust of minority groups anxious about their security.
Lessons learned
The clashes broke out Jan. 6 in the predominantly Kurdish neighborhoods of Sheikh Maqsoud, Achrafieh and Bani Zaid after the government and the SDF reached an impasse in talks on how to merge Syria’s largest remaining armed group into the national army. Security forces captured the neighborhoods after several days of intense fighting during which at least 23 people were killed and more than 140,000 people displaced.
However, Syria’s new government took measures to avoid civilians being harmed, unlike during previous outbreaks of violence between its forces and other groups on the coast and in the southern province of Sweida, during which hundreds of civilians from the Alawite and Druze religious minorities were killed in sectarian revenge attacks.
Before entering the contested Aleppo neighborhoods, the Syrian army opened corridors for civilians to flee.
Ali Sheikh Ahmad, a former member of the SDF-affiliated local police force who runs a secondhand clothing shop in Sheikh Maqsoud, was among those who left. He and his family returned a few days after the fighting stopped.
At first, he said, residents were afraid of revenge attacks after Kurdish forces withdrew and handed over the neighborhood to government forces. But that has not happened. A ceasefire agreement between Damascus and the SDF has been holding, and the two sides have made progress toward political and military integration.
“We didn’t have any serious problems like what happened on the coast or in Sweida,” Sheikh Ahmad said. The new security forces “treated us well,” and residents’ fears began to dissipate.
Jaafar agreed that residents had been afraid at first but that government forces “didn’t harm anyone, to be honest, and they imposed security, so people were reassured.”
The neighborhood’s shops have since reopened and traffic moves normally, but the checkpoint at the neighborhood’s entrance is now manned by government forces instead of Kurdish fighters.
Residents, both Kurds and Arabs, chatted with neighbors along the street. An Arab man who said he was named Saddam after the late Iraqi dictator — known for oppressing the Kurds — smiled as his son and a group of Kurdish children played with a dirty but friendly orange kitten.
Other children played with surgical staplers from a neighborhood hospital that was targeted during the recent fighting, holding them like toy guns. The government accused the SDF of taking over the hospital and using it as a military site, while the SDF said it was sheltering civilians.
One boy, looking pleased with himself, emerged from an alleyway carrying the remnant of an artillery shell.
Economic woes remain
On Friday, SDF leader Mazloum Abdi said he had held a “very productive meeting” with US Secretary of State Marco Rubio and Syrian Foreign Minister Asaad Al-Shibani on the sidelines of a security conference in Munich to discuss progress made on the integration agreement.
While the security situation is calm, residents said their economic plight has worsened. Many previously relied on jobs with the SDF-affiliated local authorities, who are no longer in charge. And small businesses suffered after the clashes drove away customers and interrupted electricity and other services.
“The economic situation has really deteriorated,” Jaafar said. “For more than a month, we’ve barely worked at all.”
Others are taking a longer view. Sheikh Ahmad said he hopes that if the ceasefire remains in place and the political situation stabilizes, he will be able to return to his original home in the town of Afrin near the border with Turkiye, which his family fled during a 2018 Turkish offensive against Kurdish forces.
Like many Syrians. Sheikh Ahmad has been displaced multiple times since mass protests against the government of then-President Bashar Assad spiraled into a brutal 14-year civil war.
Assad was ousted in November 2024 in an insurgent offensive, but the country has continued to see sporadic outbreaks of violence, and the new government has struggled to win the trust of religious and ethnic minorities.
Hopes for reconciliation
Last month, interim President Ahmad Al-Sharaa issued a decree strengthening the rights of Syria’s Kurdish minority, including recognizing Kurdish as a national language along with Arabic and adopting Nowruz, a traditional celebration of spring and renewal marked by Kurds around the region, as an official holiday. Kurds make up about 10 percent of Syria’s population.
The decree also restored the citizenship of tens of thousands of Kurds in northeastern Al-Hasakah province after they were stripped of it during the 1962 census
Sheikh Ahmad said he was encouraged by Al-Sharaa’s attempts to reassure the Kurds that they are equal citizens and hopes to see more than tolerance among Syria’s different communities.
“We want something better than that. We want people to love each other. We’ve had enough of wars after 15 years. It’s enough,” he said.