The Kingdom of Saudi Arabia, through the Saudi Program for the Development and Reconstruction of Yemen, announced a new support package for the Central Bank of Yemen, in a move that confirms the continuation of its efforts aimed at strengthening the foundations of economic and financial stability in the Republic of Yemen, which is suffering from serious challenges.

Historical context and protracted crisis

This support comes amidst the extremely complex economic and humanitarian conditions that Yemen has been experiencing for years. Since the outbreak of the crisis, the Yemeni economy has suffered near-total collapse, with the value of the Yemeni rial plummeting and oil and gas exports, which constituted the main source of government revenue, ceasing, leading to one of the world's worst humanitarian crises. Foreign aid, particularly Saudi support, has been a lifeline for the crippled economy. The Kingdom has previously provided substantial financial deposits to the Central Bank of Yemen in recent years, most notably a multi-billion dollar deposit that temporarily helped to curb the currency's decline and finance imports of essential goods.

Support objectives and expected impact

The new support aims to achieve a range of strategic objectives that extend beyond immediate financial assistance. It focuses on strengthening the institutional capacities of the Central Bank of Yemen and improving governance and transparency in its operations. This support is expected to positively impact the stability of the Yemeni rial's exchange rate, contributing to controlling inflation and alleviating the burden on citizens facing continuously rising prices for food, fuel, and medicine.

Domestically, this support is expected to enable the Yemeni government to meet its obligations, primarily paying public sector salaries regularly, which will boost purchasing power and stimulate the economy. The support also includes empowering the private sector to contribute effectively to sustainable economic growth, creating new job opportunities for young people, and supporting economic and social development initiatives across Yemen's governorates.

Regional and international importance

At the regional and international levels, this support is an integral part of the Kingdom's strategy to support legitimacy in Yemen and contribute to restoring stability to the state and its institutions. A strong and effective central bank is a cornerstone of any future reconstruction efforts and the achievement of sustainable peace. This move also aligns with calls from the international community and humanitarian organizations for urgent economic support for Yemen to prevent the humanitarian catastrophe from worsening. The Saudi Program for the Development and Reconstruction of Yemen affirmed that this support is an extension of the Kingdom's long-standing commitment to supporting Yemen and its people through the implementation of dozens of development projects in vital sectors such as education, health, water, energy, and transportation.

His Royal Highness Prince Khalid bin Salman bin Abdulaziz, Minister of Defense, and his accompanying delegation arrived in Washington, D.C., for an official visit of particular importance given the rapid geopolitical developments in the Middle East and the world. This visit underscores the depth of the strategic relationship that has bound the Kingdom of Saudi Arabia and the United States for decades.

Historical background of a long-standing partnership

This visit represents another link in a long chain of high-level communication and coordination between Riyadh and Washington. The roots of this partnership stretch back more than eight decades, built on fundamental pillars including cooperation in the fields of energy, security, and defense. This relationship has proven its ability to adapt to international changes and has formed a cornerstone in maintaining regional stability and confronting shared threats, from combating terrorism to securing vital waterways for global trade.

The importance of the visit and its expected impact

The visit of His Highness the Minister of Defense comes at a critical time, as the agenda for the talks is expected to focus on a number of pressing issues. Regionally, the discussions are believed to address ways to strengthen joint efforts to achieve stability in the region, including the situation in the Gaza Strip, maritime security in the Red Sea, the Iranian nuclear program, and support for political solutions to the crises in Yemen and Syria. These discussions aim to unify perspectives and coordinate positions to effectively confront these challenges.

Strengthening defense and security cooperation

On the bilateral level, the visit aims to explore ways to strengthen relations between the two friendly countries, particularly in the defense and military fields. This includes reviewing existing cooperation programs, discussing the development of the Kingdom's defense capabilities, and coordinating efforts in combating terrorism and extremism. Military cooperation between the two countries is a cornerstone of the regional security system, encompassing joint exercises and intelligence sharing, which contributes to enhancing the efficiency and readiness of the armed forces in both countries. This visit is not merely a protocol meeting, but a significant strategic milestone for reaffirming mutual commitments and outlining the next phase of cooperation to address global challenges and ensure a secure and stable future for the region and the world.

In a significant escalation, the European Union officially designated Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization. This decision, taken on Thursday, is a direct response to the IRGC’s role in the violent crackdown on widespread protests in Iran, opening a new chapter of tension in relations between Brussels and Tehran.

Historical background and role of the Revolutionary Guard

The Iranian Islamic Revolutionary Guard Corps (IRGC) was established following the 1979 Islamic Revolution. It is not merely a conventional military force, but a powerful institution deeply entrenched in all aspects of the Iranian political and economic state. Its primary mission is to protect the Islamic regime, and it possesses its own ground, naval, and air forces, in addition to controlling Iran's ballistic missile program. Its influence extends beyond Iran's borders through the Quds Force, its external arm responsible for military and intelligence operations in the region, making it a pivotal player in numerous regional conflicts.

Widespread protests as a catalyst

The spark that ignited this European decision was the protests that erupted across Iran in late 2022 following the death of young Mahsa Amini while in the custody of the morality police. These demonstrations, which began as protests against the mandatory hijab laws, quickly transformed into a widespread movement demanding regime change. The Iranian authorities responded with brutal repression, with international human rights organizations documenting the killing of hundreds and the arrest of thousands of protesters. The Revolutionary Guard and its Basij militia played a key role in these repressive operations.

Details of the European decision and reactions

The European decision was not merely symbolic; it included a package of concrete punitive measures. The 27-member bloc agreed to impose visa bans and asset freezes on 21 Iranian officials and entities linked to the crackdown on protests. Commenting on the decision, European Commission President Ursula von der Leyen welcomed the move, asserting that “terrorism is the correct term for a regime that represses its own people with bloodshed.”.

Tehran's response and warning of consequences

Tehran reacted to the European decision with strong rejection and anger, warning of “grave consequences.” The Iranian Foreign Ministry condemned the move, describing it as a “major strategic mistake” and an irresponsible act. The Iranian armed forces accused the European Union of succumbing to American and Israeli pressure, asserting that the decision reflects “deep hostility” toward Iran. Tehran affirmed its right to retaliate against this move, which it described as “hostile and provocative.”.

The importance and expected impact of the decision

This designation puts the European Union on a more hardline path toward Iran, aligning it with the US position, which designated the Islamic Revolutionary Guard Corps (IRGC) as a foreign terrorist organization in 2019. In practice, the decision criminalizes any financial dealings or material support for the IRGC within EU member states and allows for the seizure of its assets. It also significantly complicates any future attempts to revive the nuclear agreement (the Joint Comprehensive Plan of Action), as negotiating with a designated terrorist entity becomes extremely difficult, both politically and legally. Analysts believe this move could further isolate Iran internationally and destabilize the region.