Economy

Yemenis and the wider world are watching closely to see what the Houthi movement (Ansar Allah) will do if Iran asks them to participate in its defense and join other members of the “Axis of Resistance” in fighting against the military aggression of the United States and Israel. There has been a heated debate over the Houthis' relationship with Tehran…

The December incursion of the Southern Transitional Council (STC) into eastern Yemen appeared at first to be a resounding success for the UAE-backed secessionist movement. It was accompanied by triumphal pronouncements in southern media about the imminent resurrection of a southern state. But the rapid advance into the oil-rich hinterland, displacing pro-government and tribal forces, quickly unraveled in the face…

Regional war has forced Gulf states to confront urgent questions about their security architecture. They require defensive capabilities and frameworks that extend beyond their borders, preserve their strategic autonomy, and allow them to press ahead with their ambitious development agendas. It also revives a question that Gulf capitals have long left unanswered: Can a sustainable regional security order be conceived…

On March 28, exactly one month on from the launch of the joint US-Israeli war against the Islamic Republic of Iran, the Houthis claimed two missile and drone attacks against Israel. There had been speculation since the beginning of the war that the Houthis would eventually join the hostilities on the side of their ally, Iran, but why did the…

Editor’s Note: This analysis first appeared in The Week in Yemen, the Sana’a Center’s weekly report series. During a meeting in Riyadh, the Presidential Leadership Council (PLC) discussed the implementation of the government’s 2026 program alongside projected state budget figures. The draft program—a copy of which was viewed by the Sana’a Center—is structured into three tiers: a situational assessment, the…

On February 28, the US and Israel began a massive air offensive against Iran, targeting its leadership, command and control, and intelligence sites across the country. On March 1, Iranian media confirmed that Supreme Leader Ayatollah Ali Khamenei had been killed, by which point airstrikes had expanded to military targets and nuclear facilities, and Tehran had begun to retaliate, firing…

The war has fundamentally altered Yemen’s trade finance system, transforming it from a reliable, unified, bank-led mechanism into several divergent, conflicting structures that have made import financing cumbersome, costly, and unstable. The conflict has led to the suspension of oil and gas exports — the country’s primary source of revenue and foreign currency — and resulted in the division of…

Tensions between Saudi Arabia and the United Arab Emirates predate the recent confrontation in Hadramawt, stemming from a deeper rift that was already apparent at the start of the coalition’s campaign in Yemen. From the outset, the two powers pursued distinct goals, influenced by broader economic ambitions and long-standing strategic competition that extended well beyond Yemen’s borders. The friction between…

Yemen’s economy remains under severe strain, with its real GDP projected to decline by 1.5 percent in 2025. According to the World Food Programme (WFP), 61 percent of surveyed households in the country struggled to meet their minimum food needs in November. Of this group, 35 percent were facing severe food insecurity. Inadequate food consumption affected 63 percent of households…

Yemen’s energy sector is currently facing a severe crisis. For millions of Yemenis, accessing reliable electricity is a daily struggle, characterized by prolonged blackouts, limited fuel supplies, and deteriorating infrastructure, which in turn exacerbate the country's humanitarian conditions. This policy brief underscores the importance of a just and conflict-sensitive energy transition in Yemen, addressing the interconnected challenges of conflict, economic…