Houthis demand USD 51 bn, Saudi recognition to end attacks

The reported demands include compensation for years of Saudi-led airstrikes and a blockade imposed during Yemen's war.

Yemen’s Iran-backed Houthi rebels have demanded USD 51 billion in compensation and formal recognition of their authority over Yemen in exchange for ending attacks on Saudi Arabia, The Wall Street Journal (WSJ) reported on Thursday, November 5, citing people familiar with the discussions.

The demands emerged after Riyadh approached the group to explore the possibility of a negotiated settlement. The outreach followed Houthi attacks on Saudi oil tankers in the Red Sea and territorial advances near the Bab al-Mandeb Strait, a key maritime route linking the Red Sea with the Gulf of Aden.

People briefed on the discussions told WSJ that the proposed payment was intended to compensate for years of Saudi-led airstrikes and a prolonged blockade during the Yemen war. Although other figures have since been discussed, the group indicated that ending hostilities would require payments running into tens of billions of dollars.

The Houthis are also seeking formal recognition from Riyadh as Yemen’s ruling authority, a demand that would challenge Saudi Arabia’s continued support for the internationally recognised government.

Houthi advances increase pressure on Saudi Arabia

The demands come amid renewed fighting and territorial gains by Houthi forces. The group has advanced to within approximately 50 miles of Aden, the seat of Yemen’s internationally recognised government, marking its closest approach to the city since 2015, according to the report.

Saudi Arabia has also faced repeated attacks on its civilian airports and energy infrastructure. Ameneh Mehvar, a senior Middle East analyst at conflict monitor ACLED, told WSJ that Houthi attacks on Saudi Arabia occurred almost daily in October, targeting airports and Saudi Aramco facilities.

ACLED recorded 26 incidents in Saudi Arabia in recent days, the report said.

The escalation has also taken a heavy toll inside Yemen. A Houthi strike in Shabwah governorate killed at least 75 people and injured more than 200, making it the deadliest incident since the civil war reignited.

Kristian Coates Ulrichsen of Rice University’s Baker Institute said attacks on civilian and energy infrastructure were undermining investor confidence. He also highlighted the difficulty of confronting Houthi forces, which have established strong positions and are less vulnerable to a prolonged war of attrition.

Riyadh weighs military and diplomatic options

Crown Prince Mohammed bin Salman is reportedly reluctant to enter comprehensive negotiations without first securing battlefield gains that could strengthen Saudi Arabia’s position.

However, deploying additional ground forces into Yemen could result in heavy casualties and provoke domestic opposition. Saudi officials told WSJ that dozens of Saudi personnel had been killed in the conflict, although their deaths had not been publicly disclosed.

Maged Al-Madhaji, co-founder of the Sana’a Center for Strategic Studies, said the financial demand might be less concerning to Riyadh than the precedent an agreement could establish. He warned that accepting the conditions could encourage the Houthis to escalate militarily whenever they sought further concessions or payments.

Retired US Army Colonel David Des Roches said Houthi ballistic missile attacks on locations such as Aden could complicate the deployment of ground forces by the Saudi-led coalition.

He also pointed to the pressure on Saudi Arabia’s air defence systems, which must counter threats from Iran, Iraqi Shiite militias and the Houthis. The kingdom lacks the ground forces needed to exert the military pressure required against the rebels, he told WSJ.

Saudi Arabia seeks regional defence support

Riyadh has been pursuing closer military cooperation with regional partners as it considers its options against the Houthis.

The United Arab Emirates withdrew from the anti-Houthi campaign last December following disagreements with Saudi Arabia.

Saudi Arabia has also sought support through the Mecca Joint Defence Agreement involving Türkiye and Pakistan. The arrangement provides for mutual assistance if a member country comes under attack.

Pakistan has rejected reports that it would participate in offensive military operations inside Yemen. Egypt’s parliament approved military support in October, although President Abdel Fattah el-Sisi said any involvement would be limited to defensive operations.

The United States has declined to provide direct military support against the Houthis.

Meanwhile, Türkiye’s parliament on Thursday approved the first article of a bill ratifying the Mecca Joint Defence Agreement before adjourning its session until 2 pm.

Yemen’s army reports 1,322 operations

Amid the diplomatic efforts, Yemen’s army said it had conducted 1,322 operations against Houthi positions since launching its ‘Dawn of Yemen’ offensive on October 5.

In a statement on Wednesday, the military claimed the operations had killed or incapacitated approximately 340 Houthi fighters and destroyed or damaged 114 vehicles and pieces of equipment. It also reported advances in Al-Jawf and Taiz provinces.

The renewed fighting has further aggravated Yemen’s humanitarian crisis. Thousands of people have been killed or injured since July, while more than 250,000 have been displaced, according to the United Nations.