Jeddah, KSA– Yemen’s Minister of Planning and International Cooperation Dr. Mohammed Saeed Al-Sa’adi, and the Chairman of the Islamic Development Bank (IDB) Group Dr Ahmad Mohamed Ali, signed two development financing agreements for US$ 18.3 million at the IDB Headquarters in Jeddah.

Under the first agreement, IDB will provide US$ 15 million loan to support a number of infrastructure projects in Yemen’s rural areas, build agricultural capacity and water supply projects aimed at boosting production of crops and subsequent income.

The second agreement relates to a grant of US$ 3.3 million for the preparation of a feasibility study on a special industrial zone located in the city of Al Hudaydah, the country’s fourth largest city. The grant, to be administered by IDB, is extended by the Transition Fund established under the Deauville Partnership.

It is worth recalling that the Deauville Partnership was launched by the G-8 and Middle East countries (Kuwait, Qatar, Saudi Arabia, Turkey, and United Arab Emirates), with the participation of a number of international financing institutions (including IDB), to support Arab countries in transition such as Egypt, Tunisia and Yemen.

Since its inception, the IDB Group has approved more than US$ 1.05 billion to Yemen for the financing of development projects and trade operations, in addition to commitments of US$ 149 million for insurance operations.