Saudi and Yemeni officials said organised gangs in Yemen are active in kidnapping children and sending them to Saudi Arabia as beggars.
Some families resort to "renting their children" to these gangs for want of money, the officials said, adding that the phenomenon of child trafficking picks up during the religious season.
The sources said the children are mostly sent to Makkah and Madinah as well as other areas of the kingdom.
Over the past years, the Saudi authorities returned to Yemen more than 4,000 children, both boys and girls, who were caught begging in various Saudi cities.
Prince Abdul Majeed Bin Abdul Aziz, Makkah Governor, told Gulf News the phenomenon is not confined to Yemeni children, but gangs and even families of other nationalities are also involved in the racket. "Children belonging to Yemeni, African and Afghan nationalities are caught begging throughout the year.
"The problem is particularly acute during the Haj and Ramadan, the two seasons that attract the largest number of pilgrims from all over the world."
He said care centres being run by charity organisations have been set up to receive and accommodate child beggars where they are taught to read and write and recite the Holy Quran. "The government is doing all it can to put an end to the phenomenon which has been growing considerably of late," Prince Abdul Majeed said.
Dr Ali Al Namlah, Saudi Minister of Social Affairs, said Saudi Arabia and Yemen have agreed on setting up a joint committee to discuss the problem and suggest solutions.
"The issue was raised at the recent meeting of the Saudi-Yemeni Coordination Council which met in Jeddah and jointly chaired by Prince Sultan Bin Abdul Aziz, second deputy premier and Minister of Defence and Aviation and Abdul Qadir Bajamal, the Yemeni Prime Minister.
Al Namlah said the committee will focus on outlining the guidelines and mechanism that could help reduce the problem.
He said cooperation between the two sides has been fruitful.
The issue triggered controversy in the Yemeni Parliament after the Human Rights Minister disclosed that about 3,000 Yemeni children caught begging were handed over by the Saudi authorities over the past few months.
The minister said the Yemeni side is serious about addressing the problem and said all those involved in child trafficking would be punished.
A Yemeni member of parliament said the Minister of Interior was questioned over the failure to address the problem.