At the time of unification, South Yemen and North Yemen had vastly different but equally struggling underdeveloped economic systems. Since unification, the economy has been forced to sustain the consequences of Yemen's support for Iraq during the 1990–91 Persian Gulf War: Saudi Arabia expelled almost 1 million Yemeni workers, and both Saudi Arabia and Kuwait significantly reduced economic aid to Yemen. The 1994 civil war further drained Yemen's economy. As a consequence, for the past 24 years Yemen has relied heavily on aid from multilateral agencies to sustain its economy. In return, it has pledged to implement significant economic reforms. In 1997 the International Monetary Fund (IMF) approved two programs to increase Yemen's credit significantly: the enhanced structural adjustment facility (now known as the poverty reduction and growth facility, or PRGF) and the extended funding facility (EFF). In the ensuing years, Yemen's government attempted to implement recommended reforms—reducing the civil service payroll, eliminating diesel and other subsidies, lowering defense spending, introducing a general sales tax, and privatizing state-run industries. However, limited progress led the IMF to suspend funding between 1999 and 2001.
In late 2005, the World Bank, which had extended Yemen a four-year US$2.3 billion economic support package in October 2002 together with other bilateral and multilateral lenders, announced that as a consequence of Yemen's failure to implement significant reforms it would reduce financial aid by one-third over the period July 2005 through July 2008. A key component of the US$2.3 billion package—US$300 million in concessional financing—has been withheld pending renewal of Yemen's PRGF with the IMF, which is currently under negotiation. However, in May 2006 the World Bank adopted an assistance strategy for Yemen under which it will provide approximately US$400 million in International Development Association (IDA) credits over the period FY 2006 to FY 2009. In November 2006, at a meeting of Yemen's development partners, a total of US$4.7 billion in grants and concessional loans was pledged for the period 2007–10. At present, despite possessing significant oil and gas resources and a considerable amount of agriculturally productive land, Yemen remains one of the poorest of the world's low-income countries; more than 80 percent (2018) of the population lives in poverty. The influx of an average 1,000 Somali refugees per month into Yemen looking for work is an added drain on the economy, which already must cope with a 20 to 40 percent rate of unemployment. Yemen remains under significant pressure to implement economic reforms or face the loss of badly needed international financial support.
At unification, both the Yemen Arab Republic and the People's Democratic Republic of Yemen were struggling underdeveloped economies. In the north, disruptions of civil war (1962–1970) and frequent periods of drought had dealt severe blows to a previously prosperous agricultural sector. Coffee production, formerly the north's main export and principal form of foreign exchange, declined as the cultivation of khat increased. Low domestic industrial output and a lack of raw materials made the Yemeni Arab Republic dependent on a wide variety of imports.
As a result of civil war, Yemen is suffering from inflation and devaluation of Yemeni rial, and Yemen's economy contracted by 50% from the start of the civil war in 19 March 2015 to October 2018.
|Economy of Yemen|
Fish market in Yemen (2013)
|Currency||Yemeni rial (YER)|
|GDP||$68.95 billion (2017 est.)|
|−0.2% (2014 est.)|
GDP per capita
|$3,800 (2014 est.)|
GDP by sector
|agriculture: 24.1%, industry: 14.3%, services: 61.6% (2017 est.)|
|20% (2017 est.)|
Population below poverty line
|7.158 million (2012 est.)|
Labour force by occupation
|Most people are employed in agriculture and herding; services, construction, industry, and commerce account for less than one-fourth of the labor force|
|Unemployment||37% (2014 est.)|
|Crude oil production and petroleum refining; gas, small-scale production of cotton textiles and leather goods; agriculture, herding, fishing, dairy products, food processing; handicrafts; small aluminum products; cement; commercial ship repair|
|Exports||$8.291 billion f.o.b. (2014 est.)|
|Crude oil, coffee, dried and salted fish, liquefied natural gas|
Main export partners
| China 28.3% |
South Korea 23%
United Arab Emirates 5.3% (2013 est.)
|Imports||$10.69 billion f.o.b. (2014 est.)|
|food and live animals, machinery and equipment, chemicals|
Main import partners
| China 15.9% |
United Arab Emirates 14%
Saudi Arabia 6.6%
Turkey 4.6% (2014 est.)
Gross external debt
|$6.472 billion (31 December 2008 est.)|
|42.5% of GDP (2012 est.)|
|Revenues||$7.83 billion (2012 est.)|
|Expenses||$10.55 billion (2008 est.)|
|Economic aid||recipient: $2.3 billion (2003–07 disbursements)|
This is a chart of trend of gross domestic product of Yemen (since reunification) at market prices estimated by the International Monetary Fund with figures in millions of Yemeni Rials.
|Year||Gross domestic product||US dollar exchange||Inflation index (2000=100)|
|1999||125,562||11.70 Yemeni Rials||5.10|
|1995||516,643||40.49 Yemeni Rials||51|
|2000||1,539,386||161.00 Yemeni Rials||100|
|2005||2,907,636||191.37 Yemeni Rials||175|
For purchasing power parity comparisons, the US Dollar is exchanged at 150.11 Yemeni Rials only. Mean wages were $1.06 per man-hour in 2009.
Remittances from Yemenis working abroad and foreign aid paid for perennial trade deficits. Substantial Yemeni communities exist in many countries of the world, including Yemen's immediate neighbors on the Arabian Peninsula, Indonesia, India, East Africa, the United Kingdom, and the United States. Beginning in the mid-1950s, the Soviet Union and People's Republic of China provided large-scale assistance to the YAR. This aid included funding of substantial construction projects, scholarships, and considerable military assistance.
In the south, pre-independence economic activity was overwhelmingly concentrated in the port city of Aden. The seaborne transit trade, which the port relied upon, collapsed with the closure of the Suez Canal and Britain's withdrawal from Aden in 1967. Only extensive Soviet aid, remittances from south Yemenis working abroad, and revenues from the Aden refinery (built in the 1950s) kept the PDRY's centrally planned Marxist economy afloat. With the dissolution of the Soviet Union and a cessation of Soviet aid, the south's economy basically collapsed.
Since unification, the government has worked to integrate two relatively disparate economic systems. However, severe shocks, including the return in 1990 of approximately 850,000 Yemenis from the Persian Gulf states, a subsequent major reduction of aid flows, and internal political disputes culminating in the 1994 civil war, hampered economic growth.
Agriculture is the mainstay of Yemen's economy, generating more than 20 percent of gross domestic product (GDP) since 1990 (20.4 percent in 2005 according to the Central Bank of Yemen) and employing more than half (54.2 percent in 2003) of the working population. However, a U.S. government estimate suggests that the sector accounted for only 13.5 percent of GDP in 2005. Numerous environmental problems hamper growth in this sector—soil erosion, sand dune encroachment, and deforestation—but the greatest problem by far is the scarcity of water. As a result of low levels of rainfall, agriculture in Yemen relies heavily on the extraction of groundwater, a resource that is being depleted. Yemen's water tables are falling by approximately two meters a year, and it is estimated that Sanaa's groundwater supplies could be exhausted by 2008. The use of irrigation has made fruit and vegetables Yemen's primary cash crops. With the rise in the output of irrigated crops, the production of traditional rain-fed crops such as cereals has declined. According to the Central Bank of Yemen, in 2005 the production of khat, a mildly narcotic and heavily cultivated plant that produces natural stimulants when its leaves are chewed, rose 6.7 percent and accounted for 5.8 percent of GDP; its usage in Yemen is widespread. According to the World Bank and other economists, cultivation of this plant plays a dominant role in Yemen's agricultural economy, constituting 10 percent of GDP and employing an estimated 150,000 persons while consuming an estimated 30 percent of irrigation water and displacing land areas that could otherwise be used for exportable coffee, fruits, and vegetables.
Although Yemen's extensive territorial waters and marine resources have the potential to produce 840,000 tons of fish each year, the fishing industry is relatively underdeveloped and consists largely of individual fishermen in small boats. In recent years, the government has lifted restrictions on fish exports, and production has reached one-quarter of capacity, yielding revenues valued at US$260 million in 2005. Fish and fish products constitute only 1.7 percent of Yemen's GDP but are the second largest export. In December 2005, the World Bank approved a US$25 million credit for a Fisheries Management and Conservation Project to be launched in all coastal governorates along the Red Sea and the Gulf of Aden. This project is expected to improve fish landing and auction facilities, provide ice plants for fish preservation, and enable Yemen's Ministry of Fisheries to undertake more effective research, resource management planning, and regulatory activities.
Yemen is a small oil producer and does not belong to the Organization of the Petroleum Exporting Countries (OPEC). Unlike many regional oil producers, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government. Income from oil production constitutes 70 to 75 percent of government revenue and about 90 percent of exports. Yemen contains proven crude oil reserves of more than 4 billion barrels (640,000,000 m3), although these reserves are not expected to last more than 9 years, and output from the country's older fields is falling, a concern since oil provides around 90% of the country's exports. The World Bank predicts that Yemen's oil and gas revenues will plummet during 2009 and 2010, and fall to zero by 2017 as supplies run out, and UK's Royal Institute for International Affairs warns that instability there could expand a zone of lawlessness from northern Kenya to Saudi Arabia, while describing Yemen's democracy as "fragile" and pointing to armed conflicts with Islamists and tribal insurgents. Thus western and other diplomats and leaders are concerned to preserve Yemen's stability and to avert adverse outcomes. According to statistics published by the Energy Information Administration, crude oil output averaged 413,300 barrels per day (65,710 m3/d) in 2005, a reduction from 423,700 bbl/d (67,360 m3/d) in 2004. For the first eight months of 2006, crude oil output was flat, averaging 412,500 bbl/d (65,580 m3/d).
Following a minor discovery in 1982 in the south, an American company found an oil basin near Ma'rib in 1984. A total of 27,000 m³ (170,000 barrels) of oil per day were produced there in 1995. A small oil refinery began operations near Ma'rib in 1986. A Soviet discovery in the southern governorate of Shabwah has proven only marginally successful even when taken over by a different group. A Western consortium began exporting oil from Masila in the Hadhramaut in 1993, and production there reached 67,000 m³ (420,000 barrels) per day in 1999. More than a dozen other companies have been unsuccessful in finding commercial quantities of oil. There are new finds in the Jannah (formerly known as the Joint Oil Exploration Area) and east Shabwah blocks. Yemen's oil exports in 1995 earned about US$1 billion.
Marib oil contains associated natural gas. In September 1995, the Yemeni Government signed an agreement that designated Total of France to be the lead company for a project for the export of liquefied natural gas (LNG). In 1997, Yemen Gas Company joined with various privately held companies to establish Yemen LNG (YLNG). In August 2005 the government gave final approval to three LNG supply agreements, enabling YLNG to award a US$2 billion contract to an international consortium to build the country's first liquefaction plant at Balhat on the Arabian Sea coast. The project is a $3.7 billion investment over 25 years, producing approximately 6.7 million tons of LNG annually, with shipments likely to go to the United States and South Korea. Production of LNG began in October 2009. The Yemen government expects the LNG project to add US$350 million to its budget and enable it to develop a petrochemicals industry.
The U.S. government estimates that Yemen's industrial sector constitutes 47.2 percent of gross domestic product. Together with services, construction, and commerce, industry accounts for less than 25 percent of the labor force. The largest contributor to the manufacturing sector's output is oil refining, which generates roughly 40 percent of total revenue. The remainder of this sector consists of the production of consumer goods and construction materials. Manufacturing constituted approximately 9.5 percent of Yemen's gross domestic product in 2005. In 2000 Yemen had almost 34,000 industrial establishments with a total of slightly fewer than 115,000 workers; the majority of the establishments were small businesses (one to four employees). Almost half of all industrial establishments are involved in processing food products and beverages; the production of flour and cooking oil has increased in recent years. Approximately 10 percent of the establishments are classified as manufacturing mixed metal products such as water-storage tanks, doors, and windows.
Economists have reported that Yemen's services sector constituted 51.7 percent of gross domestic product (GDP) in 2002 and 52.2 percent of GDP in 2003. The U.S. government estimates that the services sector accounted for 39.7 percent of gross domestic product in 2004 and 39.3 percent in 2005.
Yemen's tourism industry is hampered by limited infrastructure as well as serious security concerns. The country's hotels and restaurants are below international standards, and air and road transportation is largely inadequate. Kidnappings of foreign tourists remain a threat, especially outside the main cities, and, coupled with terrorist bombings at the Port of Aden in 2000 and 2002, present a significant deterrent to tourism. As recently as September 2006, tribesmen in the Shabwa province, east of Sanaa, kidnapped four French tourists on their way to Aden. They were freed two weeks later. In October 2006, the U.S. Department of State reiterated previous warnings to U.S. citizens, strongly urging them to consider carefully the risks of traveling to Yemen. Britain's Foreign Office has issued a similar advisory. Recent statistics for tourist arrivals in Yemen are not available, but in 2004 the number rose to 274,000 from 155,000 in 2003.
According to the U.S. government, the agriculture and herding sector employs the majority of Yemen's working population (54.2 percent in 2003). Industry, together with services, construction, and commerce, accounts for less than 25 percent of the labor force.
According to the World Bank, Yemen's civil service is characterized by a large, poorly paid work force and inadequate salary differential between high and low skilled jobs to attract and retain qualified workers. In 2004 the government increased civil service salaries by 20 to 40 percent in order to alleviate the impact of anticipated economic reforms that were never implemented. The result was a 20 percent rise in wage costs; civil service wages constituted 7 percent of gross domestic product in 2004. The 2005 budget reduced economic subsidies but in exchange required the government to make various concessions, including increasing civil service wages another 10 to 15 percent by 2007 as part of a national wage strategy.
The economic assistance package the International Monetary Fund (IMF) pledged to Yemen is contingent on the implementation of civil service reform, which the government has resisted because of the country's estimated 20 to 40 percent unemployment rate. In 2004 the government claimed to have reduced the civil service labor force through retirements and layoffs, but it appears that the large salary increases have lessened the impact of any reforms. The IMF has stated that civil service salaries as a component of gross domestic product should be reduced 1 to 2 percent, a level that can only be achieved with continued reductions in the size of the civil service. It is unclear whether the national wage strategy, which may succeed in streamlining the system and removing irregularities, will in fact be able to reduce employment costs.
Yemen's currency is the Yemeni riyal (YR), which was floated on the open market in July 1996. Periodic intervention by the Central Bank of Yemen has enabled the riyal to gradually depreciate approximately 4 percent per year since 1999. Its valued averaged YR191.5 per US$1 in 2005, and has averaged YR197.5 in 2006. In late November 2006, the exchange rate was about YR198 per US$1.
During the years immediately following unification (1990–96), Yemen experienced a very high average rate of inflation—40 percent. Economic reforms brought this rate down to only 5.4 percent in 1997, but high oil prices and cuts in the fuel subsidy in recent years have had a negative impact on the inflation rate, which has generally been on the rise despite some fluctuations. In 2004 efforts by the Central Bank of Yemen to tighten the money supply were offset by a weakening US$, to which the Yemeni riyal is linked in a managed float, and by rising global commodity prices, resulting in an inflation rate of 12.5 percent. In July 2005, the government succumbed to public opposition and lowered the new general sales tax from 10 to 5 percent. This tax, coupled with reductions in government fuel subsidies and higher import prices, is expected to result in an estimated inflation rate of 15 percent in 2006, up from 11.8 percent in 2005.
According to economists, Yemen's financial services sector is underdeveloped and dominated by the banking system. Yemen has no public stock exchange. The banking system consists of the Central Bank of Yemen, 15 commercial banks (nine private domestic banks, four of which are Islamic banks; four private foreign banks; and two state-owned banks), and two specialized state-owned development banks. The Central Bank of Yemen controls monetary policy and oversees the transfer of currencies abroad. It is the lender of last resort, exercises supervisory authority over commercial banks, and serves as a banker to the government. Since end 2005 and up to the end of 2010, Tadhamon International Islamic Bank has maintained the top spot between all banks in Yemen (Commercial and Islamic) in terms of total assets, capital and trade business. The largest commercial bank, the Credit and Agricultural Cooperative Bank, which is state-owned, and the Yemen Bank for Reconstruction and Development, which is majority state-owned, are currently being restructured with the goal of eventual privatization. Because of fiscal difficulties in both banks, in 2004 Yemen's government adopted a plan to merge them; the new publicly owned Development Bank will have a minimum capital of US$50 million. Till end April 2011 this step has yet to materialize.
The large volume of non-performing loans, low capitalization, and weak enforcement of regulatory standards hamper Yemen's banking sector as a whole. Numerous banks are technically insolvent. Because many debtors are in default, Yemen's banks limit their lending activities to a select group of consumers and businesses; as a result, the entire banking system holds less than 60 percent of the money supply. The bulk of the economy operates with cash. Legislation adopted in 2000 gave the Central Bank the authority to enforce tougher lending requirements, and in mid-2005 the Central Bank promulgated several new capital requirements for commercial banks aimed at curtailing currency speculation and protecting deposits.
Yemen's state-owned Public Electricity Corporation (PEC) operates an estimated 80 percent of the country's electricity generating capacity (810–900 megawatts) as well as the national power grid. Over the past 10 years, the government has considered various means of alleviating the country's significant electricity shortage, including restructuring the PEC, integrating the power sector through small-scale privatization of power stations, creating independent power projects (IPPs), and introducing gas-generated power plants to free up oil supplies for export. However, because of inadequate infrastructure, large-scale IPPs and privatization proposals have failed to materialize, although several smaller-scale projects in Mukalla and Aden have been completed, and contracts have been signed for future projects. In 2004 Yemen's diesel-run power plants generated 4.1 billion kilowatt-hours of electricity, a level of production that is insufficient to maintain a consistent supply of electricity. Although demand for electricity increased 20 percent between 2000 and 2004, it is estimated that only 40 percent of the total population has access to electricity from the national power grid, and supply is intermittent. To meet this demand, the government plans to increase the country's power generating capacity to 1,400 megawatts by 2002.
In 1995, in order to comply with conditions stipulated by the International Monetary Fund (IMF), Yemen began an economic reform program, one component of which is fiscal policy reform aimed at reducing deficits and expanding the revenue base. However, the government has failed to significantly reduce its primary expenditure—subsidies, especially the fuel subsidy. In January 2005, Yemen's parliament narrowly adopted a 2005 budget that forecast a reduced budget deficit of about 3 percent of gross domestic product (GDP). The budget was predicated on the adoption of a reform package that included a broad-based, 10 percent general sales tax (GST) and a 75 percent reduction in the fuel subsidy. Strong public opposition to these reforms led the government in July 2005 to defer the 10 percent GST for 18 months, adopting instead a hybrid 5 percent GST, and to modify the fuel subsidy reduction. Nonetheless, the cost of subsidies, primarily for fuel, rose dramatically (almost 90 percent) in 2005, accounting for the largest share (almost 25 percent) of total government expenditures and approximately 9 percent of GDP. These costs, coupled with a 24 percent increase in civil service wages and salaries and a 42 percent increase in defense spending, resulted in a government budget deficit of US$350.8 million, or more than 2 percent of GDP, in 2005. The government has budgeted a sharp (41 percent) rise in overall spending for 2006, which economists estimate will result in a fiscal deficit of US$800 million, or 4.2 percent of GDP.
During the 1990–91 Persian Gulf War, Yemen supported Iraq in its invasion of Kuwait, thereby alienating Saudi Arabia and Kuwait, which both had provided critical financial assistance to Yemen. In addition to withdrawing this aid, Saudi Arabia expelled almost 1 million Yemeni workers. The resultant fall in expatriate remittances had a disastrous impact on Yemen's governmental budget. The civil war of 1994 further drained the economy, and in 1995 Yemen sought the aid of multilateral agencies. In 1996 the International Monetary Fund (IMF) granted Yemen a US$190 million stand-by credit facility, and the following year it approved two funding facilities that increased the country's credit by approximately US$500 million. The funding was contingent on Yemen's adoption of stringent economic reforms, a requirement that the country had limited success in fulfilling. As a result, the IMF suspended lending to Yemen from late 1999 until February 2001. The extension of the two funding facilities, particularly the poverty reduction and growth facility (PRGF), through October 2001 was again contingent on Yemen's commitment to economic reform. Because of Yemen's failure to comply sufficiently with the terms imposed by the IMF, since 2002 the IMF has withheld US$300 million in concessional financing. Discussions over the renewal of the PRGF are ongoing. In 2000 Kuwait and Saudi Arabia resumed financial aid to Yemen.
In October 2002, bilateral and multilateral lenders led by the World Bank agreed to give Yemen a four-year economic support package worth US$2.3 billion, 20 percent in grants and 80 percent in concessional loans. This funding is almost eight times the amount of financial support Yemen received under the IMF's PRGF. However, in December 2005 the World Bank announced that because of the government's continued inability to effect significant economic reforms and stem corruption, funding would be reduced by more than one-third, from US$420 million to US$240 million for the period July 2005 – July 2008. In May 2006, the World Bank adopted a new Country Assistance Strategy (CAS) for Yemen for the period FY 2006 to FY 2009, providing a blueprint for fostering the country's fiscal and human development improvement. The bank pledged to contribute approximately US$400 million in International Development Association (IDA) credits over the CAS time frame. At present, Yemen owes approximately US$264 million to Japan, one of its largest donors. In December 2005, the Japanese government pledged to write off US$17 million of the debt. That same month, Germany pledged to increase its annual aid to Yemen to US$83.6 million over the next two years; funding will go primarily to education and water improvement projects. In November 2006, the United Kingdom announced that aid to Yemen would increase 400 percent, to US$222 million through 2011.
Yemen is a member of the Arab Fund for Economic and Social Development, which since 1974 has contributed to the financing of economic and social development in Arab states and countries through loans and guarantees. In March 2004, the Arab League provided US$136 million to Yemen to finance infrastructure improvements. At a mid-November 2006 meeting in London, a group of bilateral and multilateral donors pledged US$4.7 billion over four years (2007–10) to fund economic development in Yemen. The goal of the meeting, which was jointly chaired by the World Bank and the government of Yemen, was to provide sufficient economic aid to Yemen to enable it to qualify for future Gulf Cooperation Council (GCC) membership. More than 55 percent of the aid, which is primarily in the form of grants, will come from the GCC. Yemen was granted observer status at the World Trade Organization (WTO) in 1999, and its application for full membership was under negotiation as of December 2006.
Imports totaled an estimated US$4.7 billion in 2005 and are projected to increase to US$5 billion in 2006 and to US$5.4 billion in 2007. Yemen is a net importer of all major categories of products except fuels. Principal imports are machinery and transport equipment, food and livestock, and processed materials. According to the United Nations, Yemen imports more than 75 percent of its main dietary staple—wheat. The principal source of Yemen's imports in 2005 was the United Arab Emirates (13.4 percent of total imports); the bulk of these imports are actually re-exports from the United States and Kuwait. Yemen received 10.6 percent of its total imports from Saudi Arabia and 9 percent from China.
In 2005 Yemen's exports totaled US$6.4 billion. Exports are expected to increase to reach a record US$8.6 billion in 2006 as a result of strong oil revenues. Petroleum is Yemen's main export, accounting for 92 percent of total exports in 2004 and 87 percent in 2005. Yemen's non-oil exports are primarily agricultural products, mainly fish and fish products, vegetables, and fruits. In 2005 Asia was the most important market for Yemen's exports, primarily China (37.3 percent of total exports), Thailand, and Japan. Chile was also a primary export market (19.6 percent of total exports).
Yemen's import and export values have increased and decreased dramatically in the past 10 years owing to shifts in global oil prices. As a result, the country's trade balance has fluctuated significantly from a deficit of almost US$800 million in 1998 to a surplus of US$1 billion in 2000. Rising oil prices resulted in a surplus of US$817 million in 2004 and a surplus of US$1.7 billion in 2005.
In recent years, Yemen has reported increasing non-merchandise deficits. These deficits have, however, been offset by record export earnings, which have resulted in large enough trade surpluses to keep the current account in surplus—US$175.7 million in 2003, US$524.6 million in 2004, and US$633.1 million (about 4 percent of gross domestic product) in 2005.
In 1990 the newly unified Republic of Yemen inherited an unsustainable debt burden amounting to roughly 106 percent of gross domestic product. Debt rescheduling by the Paris Club creditor countries in the 1990s coupled with assistance from the World Bank's International Development Agency resulted in a drop in Yemen's debt stock to US$5.4 billion (an estimated 39 percent of gross domestic product) by year-end 2004. According to the Central Bank of Yemen, Yemen's debt stock was US$5.2 billion (an estimated 33 percent of gross domestic product) by year-end 2005. According to the U.S. government, Yemen's reserves of foreign exchange and gold were US$6.1 billion in 2005.
Yemen does not have a stock exchange, therefore limiting inward portfolio investment. Portfolio investment abroad is also very limited, with the result that portfolio flows are largely unrecorded by authorities. In the early 1990s, net direct investment was at its peak as foreign investors tapped Yemeni oil reserves, but since 1995 net direct investment flows have been negative because cost recovery for foreign oil companies has exceeded new direct investment. A five-year US$3 billion liquid natural gas (LNG) construction project involving a consortium of foreign companies is planned following government approval in August 2005. Such a project raises the prospect of increased foreign investment in the future as LNG facilities are built.
Ahmed Abdul Rahman Al-Samawi (born 1946) is a Yemeni economist. He was the Governor of the Central Bank of Yemen for thirteen years. He is currently a member of the 'Consultative' Shura Council of the Republic of Yemen.Battle of Sanaʽa (2011)
The Battle of Sana'a was a battle during the 2011 Yemeni uprising between forces loyal to Yemeni leader Ali Abdullah Saleh and opposition tribal forces led by Sheikh Sadiq al-Ahmar for control of the Yemeni capital Sana'a and, on the part of the opposition, for the purpose of the downfall of president Saleh.Central Bank of Yemen
The Central Bank of Yemen is the central bank of Yemen.
The Bank is engaged in developing policies to promote financial inclusion and is a member of the Alliance for Financial Inclusion.The Central Bank of North Yemen was established in 1971 and the Central Bank of South Yemen in 1972. When the northern and southern sectors of Yemen reunited on 22 May 1990, the Central Bank of Yemen (of the north) merged with the Bank of Yemen (of the south) under the original name of “Central Bank of Yemen”.Corruption in Yemen
Corruption in Yemen is a highly serious problem. Yemen is the most corrupt country in the Gulf region. It is also the poorest country in the Middle East, “with an exceptionally high birth rate, acute rates of child malnutrition and rapidly dwindling reserves of oil and water.” In Yemen, according to Chatham House, “corruption, poverty and inequality are systemic”; in the words of the Carnegie Endowment for International Peace, corrupt activity is “so entrenched and pervasive” that many citizens feel powerless.Absent any “system of control and accountability,” corruption is now present throughout the public and private spheres, so much so that in the words of the World Bank, “[c]orruption and patronage networks are running the country’s public affairs.” This ubiquitous corruption has resulted in weak government and “corrupt power blocs that control public resources.” As a consequence of civil-service corruption, there are large numbers of so-called ghost workers. Corruption in the energy, communications, and health and education sectors have resulted in inadequate service or no service at all.Jane Marriott, Britain's Ambassador to Yemen, stated in December 2013 that corruption in Yemen was so pervasive that it was credibly undermining the security and economy of the nation. She also noted that institutionalized corruption of such a grand scale discourages development and innovation.Transparency International's 2016 Corruption Perception Index ranks the country 175th place out of 180 countries.Energy in Yemen
Energy in Yemen describes energy and electricity production, consumption and import in Yemen. Energy policy of Yemen will describe the politics of Yemen related to energy more in detail. Yemen n is net energy exporter.
Primary energy use in Yemen was 87 TWh and 4 TWh/million people in 2008 and 88 TWh (4 TWh/M) in 2009.Fishing in Yemen
The fishing industry in Yemen has considerable potential but is vastly under-exploited. In 1998, the fishing sector employed some 41,000 people, mainly family-owned businesses operating small vessels. In 1998, 127,000 tons of fish were caught in Yemen. Proximity to the havens of the Somali pirates has had a discouraging effect.Incense trade route
The Incense trade route included a network of major ancient land and sea trading routes linking the Mediterranean world with eastern and southern sources of incense, spices and other luxury goods, stretching from Mediterranean ports across the Levant and Egypt through Northeastern Africa and Arabia to India and beyond. The incense land trade from South Arabia to the Mediterranean flourished between roughly the 7th century BC and the 2nd century AD. The Incense trade route served as a channel for the trading of goods such as Arabian frankincense and myrrh; from Southeast Asia Indian spices, precious stones, pearls, ebony, silk and fine textiles; and from the Horn of Africa, rare woods, feathers, animal skins, Somali frankincense, and gold.List of Yemen-related topics
This is a list of topics related to Yemen.List of banks in Yemen
This is a list of banks in Yemen.List of companies of Yemen
Yemen is an Arab country in Western Asia at the southern end of the Arabian Peninsula. As of 2013, the country had a GDP (ppp) of US$61.63 billion, with an income per capita of $2,500. Services are the largest economic sector (61.4% of GDP), followed by the industrial sector (30.9%), and agriculture (7.7%). Of these, petroleum production represents around 25% of GDP and 63% of the government's revenue.Yemen's industrial sector is centered on crude oil production and petroleum refining, food processing, handicrafts, small-scale production of cotton textiles and leather goods, aluminum products, commercial ship repair, cement, and natural gas production. As of 2013, Yemen had an industrial production growth rate of 4.8%. It also has large proven reserves of natural gas. Yemen's first liquified natural gas plant began production in October 2009.Media of Yemen
Yemen's Ministry of Information influences the media through its control of printing presses, granting of newspaper subsidies, and ownership of the country’s only television and radio stations. Yemen has nine government-controlled, 50 independent, and 30 party-affiliated newspapers. There are approximately 90 magazines, 50 percent of which are private, 30 percent government-controlled, and 20 percent party-affiliated. The government controls the content of news broadcasts and edits coverage of televised parliamentary debates.
Yemen's government usually monitors and blocks political and sexually explicit Web sites. By law and regulation, newspapers and magazines must be government-licensed, and their content is restricted. There have been reports of journalists being physically attacked, as well as arrested and detained. The government gives reasons that such detained journalists are "opposing the law and calling for destruction of infrastructure" and supports some examples as in Shia insurgency in Yemen and retaliations against unity.
The official national news agency is the Saba News Agency.Mining industry of Yemen
The mining industry of Yemen is at present dominated by fossil mineral of petroleum and liquefied natural gas (LNG), and to a limited extent by extraction of dimension stone, gypsum, and refined petroleum. Reserves of metals like cobalt, copper, gold, iron ore, nickel, niobium, platinum-group metals, silver, tantalum, and zinc are awaiting exploration. Industrial minerals with identified reserves include black sands with ilmenite, monazite, rutile, and zirconium, celestine, clays, dimension stone, dolomite, feldspar, fluorite, gypsum, limestone, magnesite, perlite, pure limestone, quartz, salt, sandstone, scoria, talc, and zeolites; some of these are under exploitation.
Crude oil and natural gas reserves amounted to 3.0 billion barrels and 479 billion cubic meters. The slow progress in the mineral sector is on account of the security situation caused by civil strife and political uncertainty in the country which has been a deterrent for private companies to operate. As of 2010 the mineral industry's contribution to the country’s GDP was 13.9%.North Yemeni rial
The rial or riyal was the currency of North Yemen, first the Mutawakkilite Kingdom of Yemen, then the Yemen Arab Republic.Outline of Yemen
The following outline is provided as an overview of and topical guide to Yemen:
Yemen – sovereign country located on the southern portion of the Arabian Peninsula in Southwest Asia. With a population of more than 20 million people, Yemen is bordered by Saudi Arabia to the North, the Red Sea to the West, the Arabian Sea and Gulf of Aden to the South, and Oman to the east. Yemen's territory includes over 200 islands, the largest of which is Socotra, about 415 kilometres (259 miles) to the south of Yemen, off the coast of Somalia. Yemen is the only republic on the Arabian Peninsula.Revenue stamps of Aden
The British colony of Aden, which is now part of Yemen, issued revenue stamps from 1937 to around 1945. Prior to having its own issues, Aden had used revenue stamps of India.Trade route
A trade route is a logistical network identified as a series of pathways and stoppages used for the commercial transport of cargo. The term can also be used to refer to trade over bodies of water. Allowing goods to reach distant markets, a single trade route contains long distance arteries, which may further be connected to smaller networks of commercial and noncommercial transportation routes. Among notable trade routes was the Amber Road, which served as a dependable network for long-distance trade. Maritime trade along the Spice Route became prominent during the Middle Ages, when nations resorted to military means for control of this influential route. During the Middle Ages, organizations such as the Hanseatic League, aimed at protecting interests of the merchants, and trade became increasingly prominent.In modern times, commercial activity shifted from the major trade routes of the Old World to newer routes between modern nation-states. This activity was sometimes carried out without traditional protection of trade and under international free-trade agreements, which allowed commercial goods to cross borders with relaxed restrictions. Innovative transportation of modern times includes pipeline transport and the relatively well-known trade involving rail routes, automobiles, and cargo airlines.Yemen Ports Authority
Yemen Ports Authority (YPA) or Yemen Gulf of Aden Ports Corporation is a government corporation that governs and manages the ports of Yemen, including principally the port of Aden.Yemeni buqsha
A buqsha or bogache is a former monetary unit of the Mutawakkilite Kingdom of Yemen and the Yemen Arab Republic. 40 buqshas make up one Yemeni rial.
The buqsha coin itself is bronze and approximately 27 mm across. Modern Yemeni currency also includes silver coins worth 5, 10 and 20 buqshas, and bronze half-buqsha coins. These were introduced after Yemeni independence from the Ottoman Empire.
The buqsha was originally used as one fortieth of the Imadi riyal and later the Ahmadi riyal. When the Yemeni rial was introduced, it was decided that 40 buqshas should represent one Yemeni rial, so as to ease the transition.
At first, many buqshas were produced by the Sana'a local mint, and at one stage in the aftermath of the Yemeni revolution it was claimed that the fuselages of crashed aircraft were being used to mint the coins. Yemeni rial
The rial or riyal is the currency of Yemen. It is technically divided into 100 fils, although coins denominated in fils have not been issued since Yemeni unification.