DUBAI: Saudi Arabia has pledged $3 billion worth of aid for Yemen, with the money being used to help Yemen’s banking, as well as development in the country and through the purchase of oil derivatives.

The money will be broken down into a $2 billion support for the Yemeni central bank, offered jointly by Saudi Arabia and the UAE.

The remaining $1 billion from Saudi Arabia will be broken down to $600 million for the purchase of oil derivatives, and $400 million to support development projects and initiatives.

A further $300 million from the Kingdom has been pledged to fund the humanitarian response plan announced by the UN in 2022 to alleviate the suffering of the Yemeni people and improve their living conditions.

The announcement of the financial aid comes as Saudi Crown Prince Mohammed bin Salman expressed the Kingdom’s support for the Yemeni Presidential Leadership Council and said he hoped the council’s establishment would contribute to the start of a new chapter in Yemen.

Speaking Thursday with the Yemeni President and members of the Yemeni Presidential Leadership Council, the crown prince said he hoped the creation of the leadership council would move Yemen from a state of war to peace and development, state news agency SPA reported.

He said he hoped the next stage would be different, highlighting the determination of all involved, the report added.

The Crown Prince said the Kingdom was keen for Yemen to enjoy security, stability and prosperity.

Yemeni President Abed Rabbo Mansour Hadi announced a new presidential leadership council on Thursday and transferred his powers to it.

Hadi, in a televised address, said the council was established to complete the implementation of the transition phase and will have the authority to negotiate with the Iran-backed Houthi militia to end the years-long conflict afflicting the nation.

The move was aimed at supporting UN-led efforts to revive negotiations to end the seven-year war in the country.