Electricity

Peace talks between Saudi Arabia and the Houthi group (Ansar Allah) dominated Yemeni politics over the last year. The negotiations began as backchannel discussions in October 2022 after the Houthis resisted UN pressure to renew a truce first agreed in April 2022 by making a series of eleventh-hour demands. The talks continued despite Houthi attacks on oil terminals in southern…

The seizure of an Israeli-linked ship by Houthi forces in the Red Sea and repeated attacks on commercial shipping threaten to pile additional pressure on Yemen’s economy by raising the costs of imports. Shipping to Yemen already incurs increased transport and logistics costs due to its designation as a “high risk” area. According to a 2021 UNDP assessment, war premiums,…

Since April 2022, the war in Yemen has mutated from a high-casualty conflict to a protracted stalemate with relatively stable frontlines. The contest is now over the economy, as the Houthi group (Ansar Allah) leverages negotiations and its military power to put fiscal pressure on the internationally recognized government. The current phase has been marked by the expansion of economic…

Prime Minister Maeen Abdelmalek Saaed denied allegations of corruption against his government made in a parliamentary report during a press conference on September 4. The alleged violations include mismanagement and corruption amounting to YR2.8 trillion (approximately US$1.9 billion) across the electricity, energy, telecommunications, and financial sectors. Saaed attacked the report of a parliament fact-finding committee, calling the accusations malicious and…

Cyclone Tej struck Yemen in the last week of October, ripping through the archipelago of Socotra, making landfall in the governorate of Al-Mahra, and wreaking havoc in Hadramawt, Shabwa, and Al-Dhalea. The cyclone brought rainfall and severe flooding, destroyed homes and roads, cut off electricity and communication networks, and displaced thousands of families. According to the Yemen Red Crescent Society,…

Since the summer of 2019, protests have become a fixture across Hadramawt in reaction to the poor provision of electricity. Although the governorate is far from the frontlines and home to most of the country’s oil reserves, it has not escaped destabilizing aspects of the conflict, including the erosion of the rule of law and the emergence of war profiteering.…

Shabwa’s oil sector has developed in fits and starts. Its first commercially viable oil reserves were discovered in 1987 when the governorate was still part of South Yemen. In 1990, South Yemen united with North Yemen to form the Republic of Yemen, which enlisted foreign energy companies to help develop the nascent oil industry. This included the construction of a…