Economic

Analysis December 12, 2025 11:09 MIN The STC Moves Into Eastern Yemen – Reaction from Sana’a Center Experts By Hussam Radman, Yasmeen al-Eryani, Abdulghani Al-Iryani, and Maysaa Shuja Al-Deen In early December, armed forces affiliated with the secessionist, UAE-backed Southern Transitional Council (STC) seized control of Hadramawt and Al-Mahra, displacing tribal forces led by Amr Bin Habrish and 1st Military Region army units affiliated with the Islah party. With its eastward expansion, the STC now controls nearly all of the territory of the former South Yemen state, including its most productive oil fields. The takeover has ushered in a new phase of the Yemen conflict, with the potential for territorial lines to be redrawn and the regional balance of power now in flux. Presidential Leadership Council (PLC) chief Rashad al-Alimi and Prime Minister Salem bin Breik have left the interim capital for Saudi Arabia, where they have held a… Continue reading Yemen Review section October 28, 2025 10:04 MIN July-September 2025 Politics and Diplomacy — The Yemen Review, July-September 2025 By Casey Coombs Following women-led demonstrations in Aden and Taiz in May and June, widespread protests erupted in Hadramawt’s capital, Mukalla, on July 28, leading to the storming of a local authority building and the Munawwira electricity plant. The unrest was sparked by severe power outages lasting up to 20 hours a day. Protesters blocked streets, and shops were closed as Hadrami Elite forces fired live rounds to disperse crowds. The Mukalla People and Youth Escalation Committee, which organized the protests, accused Hadramawt Governor Mabkhout bin Madi of corruption and marginalizing locals, demanding his removal under slogans such as “No oil without Hadramawt rights.” The Hadramawt Security Committee, led by Bin Madi, denied reports of casualties during the unrest and blamed “malicious actors”… Continue reading Analysis October 28, 2025 08:42 MIN July-September 2025 A New Approach to Reforming the Government of Yemen By Hussam Radman In 2022, Yemen's internationally recognized government replaced then-President Abdo Rabbu Mansour Hadi with a Presidential Leadership Council (PLC), which was tasked with serving as the country’s new executive political and legal authority. While the transition was framed as a response to growing domestic demand for change, it was primarily driven by external influence, most notably from Saudi Arabia. The Kingdom’s urgency to extricate itself from its costly military entanglement in Yemen led to efforts to secure a negotiated settlement with the Houthis, culminating in what became known as the roadmap for peace. The roadmap has since stalled amid regional transformations following the events of October 7. The turmoil that ensued has underscored an important reality: despite its weakness and marginalization,… Continue reading Analysis October 28, 2025 06:59 MIN July-September 2025 No End in Sight: An Uncertain Future for the Houthi-Israeli Conflict By Salah Ali Salah As a fragile ceasefire takes hold in Gaza, questions are being raised about how it might influence the Houthis’ confrontation with Israel. For nearly two years, these unlikely adversaries have been locked in an unprecedented war of attrition—a conflict that began with symbolic and propagandistic strikes by the Houthis but has since escalated into sustained engagement. The Houthis have thrust themselves into the Gaza war with growing force, escalating from alleged acts of solidarity with Palestinians to increasingly bold attacks. In response, Israel has expanded its retaliation, from attacks on Yemen’s energy infrastructure, ports, and cement factories to the targeted assassination of Houthi leaders and more sensitive administrative, military, and security targets, resulting in civilian deaths. Developments in the region… Continue reading Yemen Review section October 28, 2025 05:36 MIN July-September 2025 A Dying Cause: The Lost Gains of the Muhammasheen By Jawhar Mokhtar Ahmed Historically relegated to the bottom of Yemen’s social hierarchy, the muhammasheen (marginalized ones) are a minority group that has endured decades of systematic marginalization and exclusion. The surge of activity by international non-governmental organizations (INGOs) following Yemen’s 1990 unification brought greater attention to their struggle, leading to meaningful advocacy efforts from both local and international organizations and creating momentum for the community. But the outbreak of war in 2015 and the ensuing protracted conflict threaten to undermine these hard-won gains. As international support for Yemen recedes, the plight of the muhammasheen is once again being relegated to the margins, leaving the community increasingly vulnerable. Although there are no officially recognized statistics, UN reports and other studies estimate the population of… Continue reading Analysis October 28, 2025 05:10 MIN July-September 2025 Calls for Recognizing Somaliland and the Implications for Yemen By Ahmed Al-Ahssab There have been growing signals of possible international recognition of the Republic of Somaliland. Former British Defense Secretary Gavin Williamson alluded to the possibility of US President Donald Trump recognizing Somaliland’s independence in November 2024. His remarks coincided with favorable positions expressed by US officials who had worked with Trump, such as Peter Pham and Tibor Nagy, as well as moves by American lawmakers. The president of Somaliland has also predicted that his country will soon secure its first formal recognition of independence, possibly within the coming year. A former British colony, Somaliland united with what was known as Italian Somaliland to form the Somali Republic in 1960. Following the collapse of the central government in 1991, Somaliland declared its… Continue reading Main Publications September 15, 2025 01:35 MIN Fostering Opportunities for E-Commerce Growth in Yemen By Aylin Junga Yemen's e-commerce sector holds significant potential to drive economic growth and financial inclusion, particularly for women and rural communities, but faces major challenges, including poor internet connectivity, limited digital payment systems, and the absence of legal and regulatory frameworks. The country remains heavily cash-based, with minimal access to formal banking and fragmented oversight, exposing consumers and providers to fraud and limiting sector development. Internet infrastructure is among the worst globally, with only 17.7 percent of the population online in 2024, though the recent introduction of Starlink offers hope for improved connectivity. Conflict-related damage to transportation networks further hinders delivery services. Despite these obstacles, some businesses have found success, especially in urban areas, by adapting to logistical constraints. Yemen’s youthful, increasingly… Continue reading Analysis August 26, 2025 09:03 MIN Hadramawt on Edge: Public Outcry Exposes Governance Crisis By Mohammed al-Katheri The outbreak of violent protests across Hadramawt since late July has plunged the region into chaos, as political, military, and tribal groups vie for control of Yemen’s largest governorate. Persistent fuel shortages have caused severe blackouts in the capital, Mukalla, and other cities across Hadramawt, as hundreds of people have taken to the streets for weeks of protests. Chief among the protestors’ grievances has been failing public services, primarily severe electricity and water shortages. While security forces have attempted to restore order, and electricity provision has improved, continuing widespread demonstrations and the lack of a coordinated response from Hadramawt’s milieu of political actors point to a deeper and more systemic crisis. Recent developments have left many reconsidering the future of… Continue reading Analysis August 19, 2025 06:19 MIN Rial Surges Under Revitalized Central Bank By Sana’a Center Economic Unit The Yemeni rial has seen a dramatic recovery since late July, appreciating by over 44 percent after months of hemorrhaging value. Its sudden rise is the result of a multi-pronged approach led by the government-run Central Bank of Yemen in Aden (CBY-Aden). Key measures have included curbing speculation and currency manipulation, institutionalizing import financing, and mandating the exclusive use of the rial in domestic transactions. These reforms received unprecedented political backing from the Presidential Leadership Council (PLC), the government, and local authorities, a pivotal shift in combating the systemic weaknesses that have long undermined the stability of the currency. By mid-July, the new Yemeni rial, which circulates in government-controlled areas, had tumbled to YR2,900 per US$1, its worst collapse since… Continue reading Analysis July 22, 2025 10:14 MIN April-June 2025 The Bride of the Red Sea: A Century of Transformation in Hudaydah By Tawfeek Al-Ganad Hudaydah has long served as a battlefield for those seeking control over Yemen. Since the 15th century, various empires, including the Portuguese, the Mamluks, the Ottomans, and the British, have made both successful and unsuccessful attempts to dominate the region. A century after the Mutawakkalite Kingdom of Yemen, commonly referred to as the Imamate, first extended its authority over the region, Hudaydah continues to hold immense strategic importance. Since the outbreak of regional conflict after October 7, 2023, Hudaydah has been targeted by airstrikes from the United States, Britain, and Israel, which have destroyed key pillars of its economic power, particularly the ports of Hudaydah, Ras Issa, and Al-Salif. Nevertheless, Hudaydah remains the military and economic center of Yemen’s West… Continue reading Analysis July 22, 2025 09:33 MIN April-June 2025 The Narrative Battle of the Iran-Israel War By Salah Ali Salah The 12-day military confrontation between Israel, the US, and Iran has come to a halt. This was no ordinary exchange of fire; all parties employed their most advanced military capabilities, and both Iran and Israel suffered significant casualties, in addition to material and, perhaps more importantly, psychological losses. After days of a relentless Israeli air campaign, the conflict’s turning point came with the US bombing of Iran’s nuclear facilities using B-2 strategic bombers. In turn, Tehran responded by striking the Al-Udeid Air Base in Qatar – an attack that caused no actual damage but was instead a symbolic gesture, aimed at saving face rather than intended to inflict harm. US President Donald Trump announced the cessation of hostilities shortly thereafter.… Continue reading Yemen Review section July 22, 2025 05:01 MIN April-June 2025 An Opportunity to Reset Yemeni-Iranian Relations By Maysaa Shuja Al-Deen Iran’s Axis of Resistance is on the ropes. The degrading of Hamas during the ongoing Gaza war, the recent Israeli-Iranian confrontation, the weakening of Hezbollah during Israel’s war in Lebanon, and the downfall of the Assad regime in Syria have significantly reshaped dynamics in the Middle East to the detriment of Tehran and its allies. There is one exception, however: the Houthis in Yemen. Despite Iran’s losses elsewhere, the Houthis continue to hold power in Yemen and appear largely unaffected by a year and a half of military action carried out by the US and Western allies, and by Israel. For many observers, this would make the Houthis a priority for continued Iranian support. While this argument holds some logic,… Continue reading