The agreement signals an end to the factions’ financial tensions, which have also embroiled the national carrier.
The Qatari Ministry of Foreign Affairs has issued a statement welcoming measures to de-escalate banking and aviation tensions between the internationally recognised Yemeni government and the Houthi rebels.
The ministry hopes that “this step will enhance regional and international efforts aimed at achieving sustainable peace, fulfilling the aspirations of the Yemeni people for security, stability and development,” the statement published on Wednesday read.
Echoing the Qatari sentiment, the Saudi Arabian foreign affairs ministry also issued a statement welcoming the news, saying that “the Kingdom supports the efforts to achieve peace and security for Yemen and its people”.
This follows an earlier announcement made that same day by Hans Grundberg, the UN special envoy for Yemen, which reported that the office received news that the rival factions had reached a deal to thaw these tensions.
Grundberg also urged both sides to work cooperatively to end the conflict for the sake of all Yemenis.
What are the terms of the agreement?
Earlier on Tuesday, a spokesman from the Iran-aligned Houthis, otherwise known as Ansar Allah (supporters of God), took to the X platform to announce the details of the agreement.
The armed group’s Mohammed Abdulsalam said that, as per the deal reached, all recent decisions and procedures against banks on both sides must be cancelled. Both sides must also refrain from such decisions in the future.
Analysts have cited the rivalry over banks as plunging Yemen into “financial war”.
For instance, in April, in retaliation to the decision made in March by the Houthi-controlled Central Bank of Yemen in Sana’a (CBY-S) to issue a new 100 Yemeni Riyal coin, the government-controlled Central Bank of Yemen in Aden (CBY-A) denounced the move as “dangerous and illegal” – advising citizens not to trade with it.
The CBY-S’ move also sparked concern from the European Union, which described the unilateral decision by the Houthis as “undermining the banking sector and the country’s compliance with international standards for combating money laundering and terrorist financing”.
The country’s financial instability has severely impacted the civilian population.
According to a March report by the Norwegian Refugee Council, as many as four in every five Yemenis face poverty amid the price of food staples rising to 45%.
Due to the dire straits, Yemeni families are “forced to choose between food and education for their children, resulting in an increase in school dropouts, early marriage and child labor , exacerbating protection risks and vulnerabilities,” the report added.
Flight tensions
In terms of aviation, Abdulsalam added that the agreement has also settled the dispute of national carrier, Yemenia Airlines, with an agreed resumption of flights between Sana’a and Jordan. The number of flights will increase to three daily flights.
Yemenia will operate flights to Cairo and India “daily or as needed,” the Houthi spokesman added.
The national airliner has also been impacted by the country’s banking tensions. According to the internationally recognised government, the Houthis have frozen over $100 million of assets belonging to the carrier since March last year.
Meetings will be held to “address the administrative, technical, and financial challenges faced by the company” Abdulsalam added. The two sides are also expected to discuss all other national economic and humanitarian issues, in light of the UN’s roadmap for the country.
Conflict intensified in Yemen in 2015 following the September 2014 takeover by the rebel group of the country’s capital. Neighbouring Saudi Arabia, alongside an alliance, launched an air offensive against the rebel group to halt any further territorial gains.
This triggered one of the world’s largest humanitarian crises, with the UN reporting that as many as 24.1 million people, roughly 80% of the Yemeni population, being in need of humanitarian assistance and protection.
