Sections type: The Economy & Finance

The government-held port of Aden received the commercial ship Blue Nile on April 8, without it being subject to inspection by the Saudi-led coalition at Jeddah, a first since the expansion of the conflict in 2015. The arrival followed a statement released by Aden Governor Ahmed Hamed Lamlas on April 4, encouraging shipping companies to operate direct routes to the…

The Houthi-controlled parliament in Sana’a passed a controversial law banning “usurious transactions” on March 21. Houthi authorities pushed the House of Representatives to prohibit interest-based transactions in Yemen’s banking sector after rejecting amendments proposed by the body’s joint legal committee. The law could have disastrous effects on Yemen’s economy, exacerbating its isolation and deterioration and discouraging investment. Parliamentarians appeared pressured…

On February 21, Saudi Arabia agreed to supply the Central Bank of Yemen (CBY) in Aden with a US$1 billion deposit to prop up Yemen’s faltering economy and support the value of the rial in government-held areas. The aid will not be deposited directly with the CBY-Aden, but rather handled through the Arab Monetary Fund (AMF) as part of the…

Oil production in government-held areas ground to an almost complete halt early in the month as Houthi drone attacks continued to strangle exports. With oil revenues representing the largest source of income for the government, any prolonged halt to its production and export would have dire effects on economic conditions, including an inability to pay salaries and depreciation of the…

Houthi drone attacks on Nushayma and Al-Dabba oil terminals in the latter half of October paralyzed oil exports and threatened to undermine government finances. Although its effects were not felt in October, prolonged loss of oil revenue would cut the government off from by far its largest source of revenue, which would have widespread knock-on effects, including eroding the ability…

Economic developments in September centered on the fuel crisis in Houthi-held areas and the continued delay of the Saudi-Emirati economic support package to the government. In early September, Houthi authorities initiated an emergency plan in areas under their control amid reportedly severe fuel shortages. Houthi authorities accused the coalition of being behind the shortage, citing a backup of fuel ships…

On August 23, the Yemeni government’s Minister of Industry and Trade Mohammed al-Ashwal stated that Yemen has stocks of wheat sufficient to cover approximately four months of consumption during a meeting with the Chamber of Commerce and commercial traders and importers in Aden. Al-Ashwal said that Yemen was establishing supply lines to import wheat from several countries, including Romania and…