(Bloomberg) -- Saudi Arabia and the United Arab Emirates decided to provide $3 billion to Yemen, in an effort to restart talks to end a grinding war and support the country’s economy.
The Gulf states will provide $1 billion each to the Yemen’s central bank, state-run Saudi Press Agency reported. Saudi Arabia will also provide $1 billion for the purchase of oil products and to support of development projects.
A Saudi Arabia-led military coalition has been battling Iranian-backed Houthi fighters in Yemen since 2015, with the war spilling into neighboring countries. The Houthis have escalated attacks on Saudi energy and military facilities in recent weeks, as well as making their first deadly attack on the United Arab Emirates this year.
Saudi Arabia “urges the presidential council to start negotiations with the Houthis, under the supervision of the United Nations, to reach a final and comprehensive political solution which includes a transitional period that will move Yemen to peace and development,” according to the Saudi Press Agency.
Earlier, Yemen’s President Abd Rabbuh Mansur Hadi fired his deputy Ali Mohsen Al Ahmar.
Yemen’s Warring Factions Agree to a Two-Month Truce, UN Says
The United Nations earlier this month said all sides in Yemen’s seven-year war agreed to a two-month truce starting April 2, a breakthrough in efforts to ease a conflict that’s triggered a humanitarian crisis and roiled the oil-exporting Gulf.
Under the terms of the cease-fire, ships carrying fuel will be able to enter the Houthi-controlled Hodeidah port, while commercial flights can operate in and out of Sana’a airport to some destinations in the region.
Saudi Arabia also said Thursday it will provide $300 million to the UN humanitarian program in Yemen.
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