Saudi Arabia to organise $3bn in Yemen aid as President Hadi transfers powers

Saudi Arabia said on Thursday that it would arrange $3 billion of support for Yemen's economy, hours after the Yemeni president's decision to transfer his powers to a new presidential council, the official Saudi Press Agency (SPA) said.

Riyadh announced the financial boost after Saudi crown prince Mohammed bin Salman met with President Abed Rabbo Mansour Hadi and members of a new Yemeni presidential council in the Saudi capital on Thursday.

SPA said two-thirds of the $3 billion would come from Riyadh, while the rest of the money would be provided by the UAE, which is part of the Saudi-led military coalition that backs Yemen's internationally-recognised government in its fight against the Houthi rebels.

Riyadh will give $300 million of the funds to the United Nations aid response to Yemen's humanitarian crisis.

According to SPA, several Arab states as well as the Arab League's secretary general have announced  their support for the creation of the presidential council, to which Hadi will transfer his powers.

Russia has also supported the move, according to SPA.

In addition, Riyadh called for an international conference to support Yemen's war-ravaged economy and urged the new council to start negotiations with the Houthi rebels, SPA said.

Both the Iran-backed Houthis and the Saudi-led coalition fighting in Yemen have been accused by rights groups of committing grave human rights violations.

The United Nations forecast in November that 377,000 people would have died due to the conflict in Yemen, by the end of 2021.

The war in Yemen began in 2014.

Reuters contributed to this report.