Economic

A political crisis has wracked the interim capital of Aden as the internationally recognized government struggles to deal with the plummeting Yemeni rial. The currency now trades at over YR2,000 to the dollar, having lost over a third of its value since the year began. Riven by political infighting and lacking the vision or tools to arrest the slide, an…

Almost four years ago, the incoming Biden administration, deeming peace in Yemen as low-hanging fruit, declared the ending of its war to be a top priority and appointed Special Envoy Tim Lenderking, a veteran of the State Department and competent diplomat, to reap that fruit. At the start of the conflict, the US backed the Saudi-led coalition with arms, intelligence,…

This study examines the key barriers and opportunities regarding localizing humanitarian aid in Yemen. The findings reveal a significant gap between the international community’s intent to localize aid and the reality on the ground. Challenges include Yemen’s fragmented political landscape, weak governance, and a limited understanding of what localization entails. Further, the lack of sustained investment in local organizations, especially…

Following the outbreak of the Gaza war, the Houthis (Ansar Allah) rapidly extended their support to the Palestinians, directly targeting Israel, along with Israeli and Western vessels in the Red Sea. This unprecedented crisis has bolstered the group’s regional status and resulted in the escalation of regional tensions and the emergence of a novel threat to global maritime security. Concurrently,…

Since 2022, the Southern Transitional Council (STC) has been at the forefront of efforts to regroup UAE-backed forces in Yemen, including those that operate under its own banner. These efforts have accelerated in recent months, involving the appointment of new officials and increased cooperation with other UAE-backed actors in Yemen. There are three reasons for this campaign: to build a…

Since October 2023, the Middle East has witnessed a series of geopolitical developments, which Cairo has perceived as a direct threat to its national security. These include: 1) the Israeli war on Gaza; 2) Houthi escalation in the Red Sea and a subsequent decline in Suez Canal revenue; 3) Ethiopia's quest for a seaport and plans to establish a naval…

The three most salient reasons for the collapse of the regime of former president Ali Abdullah Saleh and the inevitable slide into civil war were, firstly, the lack of proper representation of key political forces and social components in Yemen. After Saleh’s victory over the Socialist Party in the civil war in 1994, power was concentrated within his immediate circle,…

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…