Gulf States Strategy Advisors

Yemen is the poorest state on the Arabian Peninsula and probably the most challenging environment in the middle-east to do business currently. Yet, as oil, gas and mineral deposits are present in this region, there are also numerous unused economic opportunities. 

The economy is dominated by oil, which generates nearly 80 % of all revenues. Yemen’s biggest industrial group (Hayel Saeed) stopped all production in the spring of 2014.

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Since the beginning of a political domestic crisis in 2011 several resolutions of the United Nations addressed the situation. In 2012 President Abdulah Saleh stepped down after 33 years of rule. The political situation in Yemen changed dramatically with the takeover of the Houthis, a group of Shiite Zaydi fighters in 2014, which entered into a loose alliance in order to oust President Hadi. A Saudi-Arabian led intervention of a coalition of nine Arab states began in March 2015 following a request by President Hadi. With the military confrontation in Yemen since 2015 with two factions claiming to constitute the Yemini government, political transition and an orderly political process became virtually impossible. Currently the international community is striving to revitalize the political process within Yemen. Yemen is not a member of the GCC but has traditionally close relations with neighboring Gulf States.

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State authority is not fully functional. The regular attacks on security forces, sabotage against infrastructure and risk of hijackings make it highly unadvisable to travel currently to Yemen as a westerner.

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However, early and prior preparation is key  to a smooth post-conflict market entry, though a date for likely stabilization cannot be reliably predicted.

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Sources: World Bank, UNDP, IMF, German Foreign Office (AA). This text constitutes a basic information and is regularly updated. Correctness and completeness of the data cannot be guaranteed. Read the full disclaimer.