Official data reveals a significant increase in Yemeni government revenues this year compared to last, yet the administration has failed to enact any meaningful improvements in the liberated areas.
A report from the Central Bank of Yemen in Aden indicates a surplus of 42.4 billion Yemeni riyals in the state budget as of May 2026. Total revenues reached 853 billion riyals, with expenditures amounting to approximately 810 billion riyals, resulting in a structural surplus based on the cash basis of accounting. This represents a near doubling of government revenues compared to the same period last year, when revenues for the first five months of 2025 totaled 435 billion riyals.
Several factors are expected to widen this revenue gap further. Firstly, the government's recent decision to unify customs dollar exchange rates with the prevailing market rate, up from the previous 750 riyals, is projected to more than double monthly customs revenues from an estimated 60 billion riyals to over 120 billion riyals. Additionally, government revenue figures consistently include financial grants and aid, notably from Saudi Arabia.
While Saudi Arabia reportedly pledged 2 billion Saudi riyals (approximately 820 billion Yemeni riyals) this year to support the budget, actual grants received in 2025, according to the Central Bank, were around 387 billion riyals. Despite this substantial increase in both internal revenues and external aid, the economic and financial conditions in the liberated areas remain largely unchanged.
Crucially, the recurring issues of delayed salary payments for public sector employees, including security forces and the military, persist. Furthermore, public services, particularly electricity supply, have seen no notable improvements. This situation raises significant questions regarding the allocation and impact of these dramatically increased revenues and grants, given the government's apparent inability to achieve tangible positive changes in the liberated territories.
