Aden shocked as Saudi Arabia halts $1 billion deposit amidst internal conflict

ADEN, Sept. 15 (YPA) – A surprise decision by Saudi Arabia to suspend a $1 billion deposit in the central bank of Aden has caused widespread shock, particularly for Salem bin Burik, the head of the government loyal to the Saudi-led coalition.

According to consistent political and media sources, Saudi Arabia informed the “Presidential Leadership Council” in Aden last Saturday that the deposit would be frozen indefinitely.

This decision comes in the wake of a recent conflict between the Council’s President Rashad al-Alimi and his deputy, Aidarous al-Zubaidi, who leads the UAE-backed Southern Transitional Council (STC).

The sources explained that the dispute escalated after al-Zubaidi allegedly attempted to impose decisions and appointments by force without consulting the council.

This prompted al-Alimi, who is loyal to Saudi Arabia, to propose postponing the deposit. Riyadh is believed to be using this move to exert pressure on the STC.

In a related development, sources report that al-Zubaidi left Aden for the UAE following heated verbal and physical altercations last week with fellow Council member Sultan al-Arada inside the Maashiq Palace, which Saudi forces had to intervene to contain.

The suspension of the deposit is expected to thwart all economic reforms the government had planned, threatening a new economic collapse and a rise in foreign currency exchange rates.

The pro-coalition government’s inability to pay employee salaries for the fourth consecutive month, coupled with a lack of fuel for power stations, is raising fears of widespread popular protests in Aden and other southern provinces.

YPA