Economic

Yemen Review section October 16, 2024 27:46 MIN Quarterly: July-September 2024 The Economy — The Yemen Review, Quarterly: July-September 2024 By Wadhah Al-Awlaqi The ongoing economic conflict in Yemen escalated to include a fierce struggle between its bifurcated central bank for control over the nation's fractured monetary system and financial institutions. On June 26, the Central Bank of Yemen in Aden (CBY-Aden) issued a new directive, effectively banning banks and exchange outlets from working with unlicensed electronic payment companies. This move specifically targeted 12 e-wallet companies, which were deemed to be facilitating electronic payments and transfers without the necessary authorization. This appeared to be a part of a strategy to increase pressure on the Houthis by limiting alternatives to the deteriorating banknotes in use in areas under the group’s control and to prevent inflating the cash base in Yemen’s currently fragmented regulatory environment.… Continue reading Analysis October 16, 2024 07:06 MIN Quarterly: July-September 2024 Houthi Authorities Undermine Judicial Independence with Major Reforms By Mohammed Al-Shuwaiter In a new assault on the judiciary, the Houthi-controlled House of Representatives approved several amendments to the 1991 law on judicial power in mid-September 2024. This is not the first infringement on judicial independence since the Houthi group (Ansar Allah) staged a coup, taking control of Sana’a in 2014. They are systematically tightening their grip over the judiciary along racial and sectarian lines. The Houthis deliberately changed the legal structure of the judiciary and introduced what they called a “justice system” – a special committee tasked with overseeing the functions of the Supreme Judicial Council (SJC). The committee is headed by Mohammed Ali al-Houthi, a member of the Houthi Supreme Political Council. They also created unofficial posts of “supervisor” (mushrif)… Continue reading Yemen Review section October 16, 2024 06:49 MIN Quarterly: July-September 2024 Opening the Road to Besieged Taiz City: Easing Travel vs. Continued Hardship By Wissam Mohammed The strategic Al-Qasr road, connecting the heart of Taiz city to the eastern entrance of Al-Hawban, a major industrial area, was finally reopened on June 13, 2024, by the Houthi group (Ansar Allah). This development marked the end of a nine-year siege that had encircled Taiz from three sides. The reopening of the road has significantly alleviated the arduous journey for travelers to and from Taiz, who previously had to navigate treacherous, secondary roads winding around Jabal Sabir, the mountain that borders the city from the south. Previously, travel from the city center to the eastern part of Taiz could take up to six hours; now, the same journey can be completed in less than half an hour. Nevertheless, the… Continue reading Main Publications September 23, 2024 25:35 MIN Enhancing the Role of Microfinance Banks for Sustainable Impact in Yemen By Wadhah Al-Awlaqi Yemen's microfinance sector is undergoing a radical transformation. Despite initial success in empowering small businesses, the ongoing conflict has exposed deep vulnerabilities. Competition between the fractured central banks has driven a surge in microfinance bank (MFB) licenses. While this promises to expand financial inclusion, it raises serious concerns about long-term sustainability and financial stability. Several other factors are driving the transformation of existing money exchange companies into MFBs. These include the erosion of trust in the traditional banking system, the growth of the informal financial sector, and maneuvering by the exchange companies themselves. Additionally, lower entry requirements compared to conventional banks make becoming an MFB an attractive option. However, the surge in MFBs presents its own challenges. The divide in… Continue reading Main Publications September 16, 2024 37:17 MIN Child Soldiers in Marib and Shabwa By Ali Al-Sakani, Majd Ibrahim, and Casey Coombs The prevalence of child soldiers fighting in Yemen’s war has become common knowledge as Houthi (Ansar Allah) forces continue to publicly recruit and deploy children in military operations. Other armed groups in Yemen also recruit minors, although on a smaller scale and in a less public manner. In order to understand what accounts for that disparity and other aspects of child recruitment in Yemen, this policy brief seeks to explore the reasons why children have joined armed groups in Marib and Shabwa, two frontline governorates in which Houthi forces, Saudi-backed pro-government forces, and UAE-backed forces affiliated with the Southern Transitional Council (STC) are present. The warring parties have battled fiercely over control of Marib and Shabwa – two of only… Continue reading Main Publications August 21, 2024 27:41 MIN Women’s Networks Shaping Economic and Social Empowerment in Hadramawt By Dr. Maryam Alkubati This policy brief highlights how women’s networks in Hadramawt governorate have provided crucial support for Yemeni women, helping them overcome professional barriers in a social context where traditional norms often restrict their public roles. Across various professional fields, Hadrami women have credited much of their success to the assistance provided by and opportunities afforded through women’s networks. Both formal and informal, these networks serve as essential support systems, providing women with emotional guidance, professional growth, access to information, mentorship, and collaborative opportunities, which are key to navigating the barriers to economic participation. Prominent organizations have helped bridge the gaps between local and broader community resources, connecting women in Hadramawt with influential figures and opening doors to opportunities that might otherwise… Continue reading Main Publications July 31, 2024 04:01 MIN Every Day Brings a New Livelihood: Women’s Economic Empowerment in Yemen By Multiple authors This report examines the implementation challenges facing organizations supporting women’s economic participation in Yemen. It explores how interventions can be strengthened to foster change in social norms and household dynamics, rather than simply provide short-term income for women. It argues that the short-term nature of international assistance is severely hindering Yemeni women’s economic empowerment and that a strategic shift in engagement is crucial at this critical juncture. This is particularly important given that Yemeni women are increasingly engaging in the labor market, and some donors are focusing more on long-term development strategies. Rising female illiteracy, limited skills, lack of confidence, low self-esteem, and mental health issues were some of the barriers cited as limiting women’s income-earning pursuits and potential. Working… Continue reading Analysis July 23, 2024 10:10 MIN Saudis Give In to Houthi Pressure, Force CBY-Aden to Back Down By Ned Whalley, and Wadhah Al-Awlaqi Threatened with new attacks, Saudi Arabia has forced the Yemeni government to abandon efforts to cut off the Houthi group (Ansar Allah) from the international banking system. Financial sanctions enacted by the government-aligned Central Bank of Yemen in Aden (CBY-Aden) were perhaps the government’s last card in its efforts to negotiate economic relief or affect the power imbalance ahead of presumptive peace talks. Under enormous Saudi pressure, Yemen’s Presidential Leadership Council (PLC) canceled measures to consolidate control of the banking sector and financially isolate the Houthi-held north. The CBY-Aden’s position quickly became untenable without political support, and it has been forced to reverse course. The UN Special Envoy’s Office (OSESGY) has now announced that the government and the Houthis have… Continue reading Yemen Review section July 15, 2024 04:12 MIN Quarterly: April-June 2024 What Britain’s New Government Can Do For Yemen By Helen Lackner The widely expected victory of the Labour Party in Britain’s July 4 parliamentary elections came with a few surprises. As widely described, it was more a collapse of the Conservative Party than a Labour success, with the Labour Party gaining almost half a million fewer votes than it did in its equally historic defeat in 2019. Despite this, Labour will have an absolute majority in parliament of 172 seats, and the leadership will be able to ignore divergent views even among its own MPs. However, the party lost thousands of Muslim votes over leader Keir Starmer’s position on the Gaza war, at the cost of at least four seats, creating some pressure for course correction. While there are signs that… Continue reading Yemen Review section July 15, 2024 05:05 MIN Quarterly: April-June 2024 Turkey and the Red Sea Crisis By Maher Abu al-Majd Turkey’s meaningful engagement with Africa began during the rule of the Justice and Development Party in 2008. That year, Turkey hosted the first Turkey-Africa Cooperation Summit. Ankara’s quest for new horizons in its political and economic relations came during a period of notable economic growth, and over the past 15 years, it has successfully carved out a substantial presence in Africa, a continent ripe with economic prospects. Turkey’s particular focus has been on the Horn of Africa countries, where economic initiatives have an added geostrategic dimension. A key element here is Turkey’s military presence in Somalia, where it established its first military base, Turksom, in 2017. The same year, the ambassador to Turkey from Djibouti signaled a willingness to host… Continue reading Yemen Review section July 15, 2024 06:19 MIN Quarterly: April-June 2024 Socotra’s Forgotten Travelers By Saad al-Ajmi al-Socotri Yemen’s civil war has cast a shadow over Socotra, the Indian Ocean archipelago governorate, and the daily lives of its residents. Before the war began in 2014, there were three flights to and from the islands. The first was operated by Yemenia Airways, the second by small local operator Felix Airways, and the third by the Yemeni Ministry of Defense, dedicated to transporting soldiers, their families, and people with limited income. After the start of the conflict, the ministry and Felix Airways halted their flights, while Yemenia Airways remained operational, but with interruptions that sometimes lasted for months. Ticket prices have risen steadily, with a one-way ticket from Socotra to Mukalla in Hadramawt now more than three times its pre-war… Continue reading Analysis July 15, 2024 11:13 MIN Quarterly: April-June 2024 The Uphill Struggle for Yemeni Women in Academia By Rim Mugahed April 27 marked the 13th anniversary of the death of Dr. Raufah Hassan, one of Yemen’s most prominent academics, feminists, and activists. In 1993, she founded the first Women’s Studies Unit at Sana’a University, which later became the Empirical Research and Women’s Studies Center. A pioneering undertaking of its time, the research center gained notoriety among Yemenis because of the backlash received from religious conservatives. Due to the center’s work, Hassan became the primary target in religiously motivated incitement campaigns, prompting her to leave Yemen for several years. Decades later, bitter questions remain: Has anything changed concerning the lived realities of female academics in Yemen? And what of the future of women’s studies centers in the country? Although Yemen has… Continue reading