Pakistan, Jan. 16 -- Saudi Arabia has announced a $500 million development package for southern Yemen following a government offensive against allied separatists, signaling the kingdom's growing role in stabilising the region. The initiative will span 10 provinces and includes the construction of hospitals, schools, roads, and the donation of fuel to boost power production. Riyadh also plans to build a mosque on Socotra island named "The Custodian of the Two Holy Mosques," in honor of the Saudi king.

Read More: Yemen's STC welcomes Saudi dialogue offer

The announcement came after Saudi-backed forces reasserted control in southern Yemen earlier this month, following the advance of the Southern Transitional Council (STC) near the Saudi bo...