Houthis Dispute Report of $51 Billion Saudi Compensation Demand

Houthis sought 51 billion in compensation and Saudi recognition.

Report: Yemen's Houthis demanded 51 billion in compensation from Saudi Arabia and recognition as Yemen's legitimate authorities during negotiations with Riyadh, The Wall Street Journal reported, citing sources familiar with the talks.

The newspaper reported that other compensation figures were subsequently discussed, but that any settlement would involve payments running into tens of billions of dollars, highlighting the financial and political obstacles facing negotiations between Saudi Arabia and the Houthis,

who control the Yemeni capital, Sanaa. However, a journalist aligned with the Houthis disputed the claims in comments to The New Arab, rejecting both the reported 51 billion figure and the suggestion that the movement was seeking Saudi recognition.

Hussein al-Bukhaiti, a Sanaa-based journalist close to the movement, said the report misrepresented the scale and purpose of the compensation sought.

"These reports are false," he told The New Arab, alleging that Saudi Arabia had leaked the information to portray the Houthis as chasing money and suggest that the compensation sought was intended for the movement rather than the Yemeni people.

Al-Bukhaiti said the authorities in Sanaa had instead demanded compensation from the Saudi-led coalition, both directly and through the United Nations and other mediators, putting Yemen's economic losses from the war at 1.13 trillion.

He said the figure covered lost economic output and damage to infrastructure, industry, healthcare, and other sectors, but excluded compensation for deaths, injuries, and damage to private homes.

According to al-Bukhaiti, compensation for broader economic losses and payments to individuals would be handled separately, with different conditions governing each.

"There may be flexibility over the payment mechanism, such as annual payments or installments spread over a few years, but not over a long period," he said.

However, he insisted that compensation for deaths, injuries, and damage to private property was non-negotiable, arguing that families should not have to wait years to receive payments.

Claims for damaged homes would require official documentation establishing property values and would be processed through a reconstruction program following an agreement with Saudi Arabia, he added.

Houthis reject Saudi recognition claim al-Bukhaiti also rejected The Wall Street Journal's reports that the Houthis had demanded recognition from Riyadh as Yemen's legitimate authorities.

Instead, he said the movement's priorities were a complete Saudi withdrawal from Yemen and an end to Riyadh's interference in the country's internal affairs, including its support for rival Yemeni factions.

"The group is not waiting for recognition from any party," he said.

"They should leave Yemen, and we will resolve our problems among ourselves through dialogue without foreign interference."

Saudi Arabia launched a military intervention in Yemen in 2015 in support of the internationally recognized government after the Houthis seized Sanaa the previous year.

A UN-brokered truce in April 2022 sharply reduced hostilities.

Although the agreement formally expired that October, the relative calm that followed opened the door to direct negotiations between Saudi Arabia and the Houthis.

In December 2023, the United Nations announced commitments towards a nationwide ceasefire and a political process alongside measures addressing public sector salaries, oil exports, road access, and restrictions on Sanaa Airport and Hudaydah Port.

The conflicting accounts leave unanswered whether the reported 51 billion represented a formal demand, an initial negotiating position, or one of several figures discussed, and how compensation would fit into a broader political settlement.

Al-Bukhaiti also warned that Saudi Arabia could face greater economic losses if negotiations failed and hostilities resumed.

"Saudi Arabia would be the winner in this deal if it met all the demands," he said, raising the prospect of attacks aimed at completely destroying the Saudi economy and its oil sector if an agreement was not reached.

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