Saudi Arabia reportedly halves allowances for affiliated factions amid regional economic strains

RIYADH/ADEN,  June 27 (YPA) –  The Saudi military command has decided to reduce the monthly financial allowances for personnel within its affiliated factions in Yemen by 50%, effective July, according to political and media sources.

Under the new directive, monthly stipends will be decreased to 500 Saudi Riyals ($133 USD), down from 1,000 Riyals. Sources attributed the decision to broader regional economic pressures following recent disruptions to Gulf oil exports through the Strait of Hormuz amid escalating geopolitical tensions involving Iran and Western powers.

The measure is expected to apply to all Riyadh-backed factions, including those previously aligned with the UAE that were integrated under a restructuring program earlier this year.

Observers and local sources express concern that the austerity measure could trigger widespread discontent and exacerbate security tensions within controlled territories, where living conditions have already deteriorated significantly. Faction personnel had reportedly been anticipating financial adjustments upward rather than budget cuts, raising the potential for protests or internal unrest.

YPA