07/08/2026
Important Clarification Issued by the management of the Social Fund for Development
The Management of the Social Fund for Development (SFD) has closely followed the recent directions
and statements issued from governmental sources in Aden that deepens further political interference in the current institutional established stability of SFD, an interference that has been explicit since August 2025. The Management further affirms that the above statements and declaration concerning reallocating SFD's Headquarters from Sanaa are misguiding claims.
The statements contained several serious and baseless allegations and accusations to justify the attempts to reallocate SFD's Headquarters, while rejecting these allegations and accusations, SFD's management warns from the direct negative impact, and severe damages for the reputation and continuity of SFD and donor confidence, thereby harming vulnerable groups requiring its services across all regions of the country.
SFD’s Management declares total rejection of any compromise on its political neutrality, unity, independence, and institutional stability. This includes rejecting the holding of meetings or the issuance of any decisions by any political party that might affect such neutrality. The neutral approach maintained by SFD throughout its life has been the cornerstone enabling it to sustain vital services, mobilize resources, and serve all people of Yemen with equity over three decades of recognized operations, particularly during more than ten years of war. Furthermore, insisting on politicizing SFD's
governance by activating a board of directors amid the current national political division poses a direct
and serious threats and risks to the neutrality, unity, independence and stability of the institution, which was successfully avoided throughout the past decade with the assistance of donors and the understanding of all parties.
Although recent interventions and decisions were built upon false claims, unfounded allegations, and exaggerated concerns, the Management has exerted efforts over months of discussions and mediations with key donors to refute them. Consequently, key donors presented a settlement initiative to mitigate the catastrophic impact of these interventions and resume grant funding. This initiative, along with an action plan based on the principle of decentralization while maintaining SFD's neutrality, independence, and institutional unity, was accepted and signed. Furthermore, an independent international diagnostic legal study commissioned based on the recommendation of the donors and
concluded in June 2026 (requested to provide objective verification under the principles of the settlement) confirmed that SFD, under its current administrative structure, operates independently and neutrally, is not at risk to international sanctions risks as claimed, and does not place its partners or stakeholders to any sanction-related risks.
SFD Management confirms that relocating the headquarters from its place of origin in which it was established under its law is unacceptable, in addition to being an unrealistic direction impossible to
implement technically and administratively and constitutes a purely political direction. These measures, claimed to aim at protecting SFD and operating it to serve all areas of Yemen, ignoring the reality on the ground, established institutional infrastructure, operational systems, and specialized
professional staff in the Headquarters, whose recognized expertise accumulated and worked smoothly over three decades, proving remarkable success even under the most difficult conditions of war. There are no administrative reasons or logical professional institutional justifications requiring this move at all; SFD, in its neutral status, enjoys a recognized consensus on serving all the people of Yemen with
equity and objectivity, and is subject to strict and intensive office and field supervision and oversight from international donors funding its programs.
Such attempts will not succeed since operating any branch office is not attainable in isolation from its
Headquarters which is the operational backbone, and technical, administrative and managerial
backstopper for all branches. We gratefully acknowledge that SFD's donors have exerted considerable efforts over recent weeks, and
continue to do so, to contain this dangerous direction and restore the agreed path based on the settlement principles and action plan proposed by the donors, but without success to date.
The Management regrets the continuation of this escalation and the disregard for millions of impoverished and needy people, leading to the suspension of all humanitarian and development programs of more than USD 300 million in ongoing grants and upcoming grants. This increases the suffering of the vulnerable people, for whom SFD represents the main window of hope and the most
capable entity to reach them and secure funding to alleviate their hardship.
In conclusion, we reaffirm that the Social Fund for Development will remain steadfast in its position, upholding its independence, neutrality, and institutional unity, and remaining faithful to its proven operational principles in serving all governorates of Yemen with equity. We also reconfirm to our international partners and the donor community our full and strict commitment to the highest standards of performance, continuing our strategic partnership to ensure support reaches its rightful beneficiaries away from any political friction.
Issued by the Management of the Social Fund for Development
5 August 2026
