Economy Type
Conflict-Fragmented, Import-Dependent & Reconstruction Economy
Conflict-segmented import-dependent reconstruction economy
Yemen is classified as a Conflict-Fragmented, Import-Dependent & Reconstruction Economy .
Yemen is a strategic country located between the southwestern Arabian Peninsula and the Red Sea and the Gulf of Aden, but its national economy has significantly contracted due to a long-term civil war and fragmentation of its political, monetary, and administrative systems. Although it was formerly an oil and LNG exporting country, it has effectively become an oil importing country since crude oil exports ceased in 2022, and its fiscal, foreign exchange, and power supply capabilities, as well as its ability to import essential goods, have all weakened simultaneously.
The IMF projected that the Yemeni economy would contract by 0.5% in 2025 before growing by 0.5% in 2026, and forecasted a consumer price inflation rate of 26.5% in 2026. The projected nominal GDP for 2026 is approximately $7.4 billion, indicating that the formal economic base is significantly shrunken compared to the actual population and scale of economic activity.
Country Definition
Yemen possesses a strategic location in the Red Sea and the Bab el-Mandeb Strait, as well as potential for oil, gas, fisheries, and agriculture; however, due to prolonged conflict and institutional fragmentation, it is a vulnerable country where humanitarian aid, the import of essential goods, and the restoration of basic infrastructure have become the core of its economy.
Why It Matters
Yemen is located adjacent to the Bab el-Mandeb Strait, which connects the Red Sea and the Gulf of Aden. As this strait is a key passage connecting the Suez Canal with maritime trade between Europe and Asia, Yemen's security situation impacts global shipping, insurance, and energy supply chains beyond its domestic economy. Since late 2023, attacks on vessels by Yemen-based militants have led shipping companies to increasingly bypass the Cape of Good Hope, driving up transit times, insurance premiums, and fuel costs.
According to the World Bank, Yemen's real GDP per capita has decreased by 58% since 2015. In internationally recognized government jurisdictions, inflation exceeded 30% in 2024, and the value of the Yemeni rial has also fallen significantly, weakening household purchasing power for food and energy.
In 2024, merchandise exports were estimated at approximately $230 million and merchandise imports at approximately $4.35 billion, resulting in a trade deficit of about $4.12 billion. This illustrates a structure where the basis for earning foreign currency through exports has been significantly weakened, despite dependence on external sources for food, fuel, pharmaceuticals, and machinery.
Korea Perspective
For South Korea, Yemen is a country that must be approached from the perspective of humanitarian aid, restoration of basic infrastructure, maritime safety, and long-term reconstruction cooperation, rather than the general consumer goods market.
Korea's potential areas of cooperation are as follows.
- food and medicine supply
- Water purification and seawater desalination
- Solar Power & ESS
- Independent power supply for hospitals and schools
- Fisheries and Cold Chain
- Port and Maritime Safety
- Mobile medical facilities
- Prefabricated housing and public facilities
- Waste and hygiene management
- Disaster and Humanitarian Logistics
Short-term commercial expansion carries very high risks regarding public security, sanctions, port controls, payment settlement, and contract execution. Therefore, a limited approach through international organizations, official development assistance, humanitarian procurement, and local verification partners is necessary.
Key Keywords
- Civil Conflict
- Humanitarian Crisis
- Bab el-Mandeb
- Red Sea Shipping
- Oil Export Suspension
- Food Import Dependence
- Water Scarcity
- Renewable Energy
- Fisheries
- Reconstruction
Yemen is located in the southwestern part of the Arabian Peninsula, bordering Saudi Arabia and Oman, and connected to the Red Sea, the Gulf of Aden, and the Arabian Sea. The capital, Sana'a, is the political and administrative center of the north, while Aden is the hub of the internationally recognized government and the economic and port functions of the south. Hodeidah, Mukalla, Marib, and Taiz are also major strategic strongholds.
Since 2014, Yemen has maintained a effectively fragmented state system, with Houthi forces controlling Sana'a and the northwest, and various southern and regional factions forming separate power structures alongside the internationally recognized government. The central bank, exchange rates, customs, taxes, telecommunications, and the operation of public institutions are also divided by region.
This segmentation has created a dual economic structure in which the same Yemeni rial is traded under different values and monetary policies depending on the region. Government-controlled areas suffer from severe currency devaluation and rising import prices, while the northern region operates separate currency, price, and import controls.
Despite mediation and ceasefire efforts by the international community, a comprehensive political agreement was not reached. As of July 2026, military tensions between forces in Yemen and Saudi Arabia have risen again, and uncertainty regarding regional affairs and shipping in the Red Sea persists.
Key Features
- Prolonged civil war and a effectively divided governing system
- Multiple central banks, exchange rates, and tariff systems
- Dependence on international aid and overseas remittances
- Strategic location of the Red Sea and Bab el-Mandeb
- High dependence on food and fuel imports
- Uncertainty in population, poverty, and health statistics
- Vulnerable security and contract execution
- Large-scale humanitarian aid needed
The Yemeni economy consists of oil and gas, agriculture and fisheries, small-scale manufacturing, distribution and transportation, remittances, and international aid. However, currently, the import of essential goods and humanitarian assistance support economic activity more than a normal production economy.
The IMF analyzes that fiscal and current account deficits have widened due to a sharp decline in government revenue and foreign currency inflows following the suspension of crude oil exports in 2022. While the government curbed the deficits by cutting spending and electricity subsidies, public services and capital investment were also reduced. Capital expenditures for the first half of 2025 were estimated to have decreased by approximately 80% compared to the budget.
The World Bank assessed that in 2025, oil export blockades, inflation, reduced aid, and institutional fragmentation limited economic recovery. In 2026, there is a risk that the burden of food, fuel, and transportation costs will increase due to the added factors of conflict in the Middle East and instability in the Red Sea.
The domestic market is centered on food, fuel, pharmaceuticals, electricity, telecommunications, and basic necessities. Purchasing power is low, and significant regional differences in prices and exchange rates make it difficult to view as a single national market.
In commercial activities, cash payments, currency exchange firms, informal remittances, and local networks exert significant influence. The utilization of letters of credit, remittances, and trade finance is also limited due to the fragmentation of the banking system and restrictions on international payments.
Market characteristics
- Low growth and fiscal crisis following the suspension of crude oil exports
- A market for essential goods centered on food, fuel, and medicine
- Dependence on international aid and overseas remittances
- Regional differences in exchange rates and prices
- Low purchasing power and high poverty
- Sharp decline in public services and investment
- Segmentation of financial and payment systems
- High security and contract risks
- High proportion of humanitarian procurement
- The large gap between reconstruction demand and actual payment capacity
MarketHub Point
Yemen is a market with enormous potential demand, but actual effective demand is often limited to projects funded by international organizations, aid agencies, government support, and overseas remittances.
Yemen's key industrial assets are oil and gas, agriculture, fisheries, ports and shipping, and small-scale manufacturing. However, most industries are unable to operate normally due to conflict, power shortages, aging infrastructure, and logistics disruptions.
3.1 Oil and Gas
Although Yemen's production scale is small compared to major oil-producing countries in the Middle East, it possesses crude oil and natural gas resources centered around the Marib and Masila regions. The main crude oils are light, low-sulfur Marib oil and heavy, high-sulfur Masila oil.
Yemen's crude oil production has continuously declined since peaking in 2001 due to the natural decline of aging oil fields, a lack of investment, and attacks on pipelines and facilities. Following attacks on crude oil export facilities in 2022, oil exports, a major source of foreign currency for the government, have virtually come to a halt.
The areas required in the long term are as follows.
- Oil well and pipeline restoration
- Storage tanks and export terminals
- Gas treatment
- Gas supply for power generation
- Industrial Safety
- Corrosion and Leakage Management
- Environmental restoration
- Small-scale refining and fuel storage
However, large-scale energy investment is realistically difficult unless political consensus and facility security are secured.
3.2 Electricity and Renewable Energy
Yemen is suffering from a chronic power shortage due to a lack of power generation facilities, disruptions in fuel supply, damage to the transmission and distribution network, and high power losses.
Due to the instability of the public power grid, households, shops, and hospitals rely on diesel generators and small-scale solar power. This means that solar power and batteries are being utilized not merely as eco-friendly facilities, but as essential infrastructure for survival.
The major opportunities are as follows.
- Residential solar power
- Independent power supply for schools and hospitals
- solar minigrid
- ESS
- High-efficiency cooling
- solar water pump
- Emergency generator
- Power grid restoration
- remote monitoring
The equipment must be designed with a simple and repairable structure, taking into account high temperatures, dust, parts shortages, and a lack of maintenance personnel.
3.3 Agriculture and Food Security
Yemen's agriculture consists of grains, fruits, vegetables, coffee, livestock, and khat cultivation. However, food productivity is low due to insufficient rainfall, groundwater depletion, shortages of fuel, fertilizers, and seeds, and conflicts in rural areas.
The major areas of cooperation are as follows.
- water-saving irrigation
- solar pump
- Seeds and fertilizers
- grain storage
- small agricultural machinery
- Greenhouses and Smart Farms
- Livestock hygiene
- food processing
- Refrigeration and packaging
- Coffee Quality Control
The structure in which khat cultivation occupies agricultural water and farmland is also a limiting factor for long-term food security.
3.4 Fisheries and Marine Industry
Yemen has a long coastline spanning the Red Sea, the Gulf of Aden, and the Arabian Sea, giving it great potential for fisheries. Tuna, sardines, crustaceans, and coastal fish species can serve as an important basis for food, employment, and exports.
However, port facilities, fishing vessel safety, ice making and freezing, inspection and processing, and export logistics are lacking.
The major opportunities are as follows.
- Small fishing boats and engines
- ice maker
- solar cold storage
- Seafood processing
- Fish tank hygiene
- Location tracking and communication
- Maritime safety equipment
- Aquaculture technology
- Quality and quarantine
- Marine Environment Management
Fisheries businesses must consider the livelihoods of local fishermen and the prevention of illegal fishing and overfishing together.
3.5 Water, Health, and Urban Infrastructure
Yemen is one of the world's most water-scarce countries, and groundwater depletion and damage to urban water networks threaten both the lives of residents and agriculture.
Hospitals, schools, roads, water and sewage systems, and waste treatment facilities have also been significantly weakened due to the prolonged conflict.
Promising fields are as follows.
- Water purification and seawater desalination
- Water pipe leak management
- rainwater storage
- Portable water purification equipment
- Hospitals and public health centers
- Medical refrigerator
- Mobile school
- Modular public facilities
- Waste treatment
- Hygiene and Infection Control
Key industries
- Crude oil and natural gas
- Agriculture and livestock
- fisheries
- Food distribution
- Ports and shipping
- solar power and distributed power
- Water purification and desalination
- Medical and Health
- Construction and restoration
- Delivery support logistics
MarketHub Point
Yemen's industrial priority lies in restoring survival-oriented basic industries such as food, water, electricity, healthcare, and logistics, rather than high-value-added new industries.
Yemen previously exported crude oil, LNG, seafood, coffee, and some agricultural products, but its export base has been significantly weakened due to the suspension of crude oil exports.
According to UNCTAD, merchandise exports in 2024 amounted to only about $230 million, while merchandise imports totaled about $4.35 billion. There is a very high dependence on imports for food, fuel, pharmaceuticals, vehicles, machinery, and daily necessities.
Major imports are made through the United Arab Emirates, China, Saudi Arabia, India, Turkey, and surrounding Middle Eastern and Asian markets. Since control authorities differ by port and land border, customs clearance costs, taxes, inspections, and transit times may vary by region.
The major ports are Aden, Hodeida, Salif, and Mukalla. Hodeida and Salif are important for the supply of food and fuel to the northern region, while Aden and Mukalla are key to the supply chains of the south and east.
If global shipping companies avoid the Suez–Bab el-Mandeb route due to attacks on vessels in the Red Sea, Yemen's own import freight and insurance costs will rise. This raises the import prices of food and fuel, further worsening the purchasing power of the residents.
Major trading partners and regions
- United Arab Emirates
- china
- Saudi Arabia
- India
- Turkey
- Oman
- Egypt
- Djibouti and East Africa
- Some countries in the European Union
- Other Gulf countries
Supply chain characteristics
- High dependence on imports of food, fuel, and medicine
- Crude oil exports suspended
- Differences in control systems by port
- Burden of duplicate customs duties, inspections, and transportation costs
- Red Sea shipping and insurance risks
- Segmentation of banks and foreign exchange markets
- High proportion of humanitarian procurement
- Lack of cold chain and storage facilities
- Payment, Contract, and Security Risks
- Local partner verification required
MarketHub Point
In the Yemeni supply chain, port accessibility, controlling authorities, international sanctions, payment channels, insurance, and final delivery areas must be checked before product prices.
Yemen is difficult to access as a general private consumer market or industrial investment market. Currently, most business opportunities are concentrated on humanitarian aid, the supply of essential goods, the restoration of local livelihoods, and the recovery of basic infrastructure .
The World Bank estimates that approximately 17 million people face food insecurity, and about 18 million lack sufficient access to safe drinking water and sanitation facilities. This implies that there is significant demand in the sectors of food, water, health, and electricity; however, the actual market is formed by international organizations, aid agencies, and public funds, rather than the direct purchasing power of the residents.
5.1 International Organizations and Humanitarian Procurement
The most realistic way to enter the Yemen market is to participate in procurement projects of UN agencies, the World Bank, international NGOs, and aid organizations.
The major demand items are as follows.
- Food and Nutrition
- Medicines and medical consumables
- Mobile medical equipment
- Water purification and sanitary facilities
- solar power generation
- Refrigeration and cold chain
- Temporary housing and modular facilities
- Communications and satellite equipment
- Logistics and warehouse equipment
- Agricultural and livelihood recovery equipment
The U.S. OFAC permits transactions for agricultural products, pharmaceuticals, medical devices, telecommunications, personal remittances, the unloading of refined oil, and certain port and airport operations under general authorization. However, since the scope of permission and requirements for trading partners are specific, not all transactions are automatically permitted merely because the items are humanitarian goods.
5.2 Water and Sanitation Infrastructure
Water scarcity is one of Yemen's most serious structural problems. Damage to urban water networks, groundwater depletion, fuel shortages, and inadequate sewage treatment simultaneously threaten drinking water, health, and agriculture.
The potential areas for Korean companies to consider are as follows.
- Small-scale seawater desalination
- Portable water purification equipment
- solar water pump
- Leak detection
- rainwater storage
- Water and sewage restoration
- Water tanks and piping
- Sanitary facilities
- Water quality test
- Remote Operations Management
In Yemen, decentralized facilities at the village, school, and hospital level may be more suitable than large-scale centralized facilities in terms of operation and maintenance.
5.3 Solar Power and Distributed Power
In a situation where the public power grid is unstable, solar power is an essential infrastructure for daily life rather than an eco-friendly investment.
The following demand exists for hospitals, schools, drinking water facilities, telecommunication base stations, and cold storage warehouses.
- off-grid solar power
- Battery · ESS
- Mini Grid
- Medical backup power
- Solar-powered refrigeration and ice making
- High-efficiency lighting and cooling
- remote monitoring
- Maintenance training
Recently, there have been confirmed cases of hospitals and schools in Yemen restoring power using solar energy. This demonstrates that it is a realistic alternative for reducing fuel imports and dependence on diesel power generation.
The product must be designed with a simple and repairable structure, taking into account high temperatures, dust, voltage instability, and the shortage of parts and skilled personnel.
5.4 Agriculture and Food Security
While it is difficult to significantly reduce dependence on food imports in the short term, improving the productivity of local agriculture and livestock farming can simultaneously support livelihoods and nutritional status.
Promising fields are as follows.
- water-saving irrigation
- drought-resistant seeds
- small agricultural machinery
- solar pump
- grain storage
- Feed and Livestock Hygiene
- Small-scale food processing
- Greenhouse cultivation
- Refrigeration and packaging
- Support for agricultural cooperatives
It is more suitable to link the business with family farms, local cooperatives, and livelihood projects for women and youth rather than large-scale commercial farms.
5.5 Fisheries and Cold Chain
Yemen's long coastline and diverse fisheries resources are an important non-oil growth base.
The major business opportunities are as follows.
- Small fishing boats and outboard motors
- Ice-making and refrigeration equipment
- solar cold storage
- Seafood sorting and processing
- Sanitary and quarantine
- fishing port facilities
- Maritime communication and location tracking
- Life-saving and safety equipment
- Aquaculture
- Distribution and export packaging
While the fisheries industry can create jobs and food relatively quickly, maritime security, port access, illegal fishing, and cold chain logistics must be improved alongside it.
5.6 Health and Medical Care
Conflict and economic crises weakened hospital facilities, medicine supplies, vaccinations, and maternal and child health.
Korea's potential areas of cooperation are as follows.
- Mobile clinic
- Diagnostic and testing equipment
- Medical refrigeration equipment
- Maternal and Newborn Equipment
- Infectious disease response
- Hospital solar power
- Water purification and sanitation
- telemedicine
- Medical professional education
- Hospital Information System
For medical projects, joint ventures with international organizations or accredited NGOs are more realistic than sole contracts with local government agencies in terms of payment, operation, and safety.
5.7 Port, Logistics, and Maritime Safety
Yemen's ports are crucial for the supply of food, fuel, and medicine, as well as for long-term reconstruction. However, control authorities, inspections, sanctions, insurance, and military risks vary by port.
The major opportunities are as follows.
- Port cargo handling equipment
- Warehouses and silos
- refrigerated logistics
- Port power
- Vessel and route surveillance
- Response to marine pollution
- Digitalization of customs clearance
- Small boat repair
- disaster logistics
- Port safety equipment
Military tensions in the Red Sea and Bab el-Mandeb affect freight rates and insurance premiums not only in Yemen but across the entire Suez Canal. In July 2026, threats between the Houthi leadership and Saudi Arabia have risen again, and uncertainty regarding maritime security persists.
5.8 Market Entry Methods
Entry into Yemen must be reviewed by considering the region, controlling authority, funding sources, and sanctions as a single framework.
Recommended entry structure
Humanitarian Need Verification
Verify the actual demand areas, beneficiaries, and operating agencies.
↓
Donor-Funded Procurement
Priority is given to projects that have secured funding from international organizations, aid agencies, and development finance.
↓
Sanctions & Counterparty Screening
Verify whether sanctions have been imposed on individuals, companies, financial institutions, vessels, and ports linked to the Houthi.
↓
Local Maintenance Model
Establish a system for local training, parts, remote support, and simple maintenance.
Major Risks
- Civil war/military conflict
- Governance system and central bank segmentation
- Sanctions related to the Houthi
- Port and road access restrictions
- Exchange rates and price fluctuations
- Blocking international payments
- Difficulty verifying local partners
- Rising logistics and insurance costs
- Lack of protection for contracts and property rights
- Decrease in aid funds
The U.S. Treasury Department continues to impose additional sanctions on individuals and companies linked to the Houthi smuggling and financing networks in 2026. Therefore, you must verify not only the names of trading partners but also the beneficial owners, affiliates, vessels, and third-country intermediaries.
MarketHub Point
In Yemen, the source of funding, the ultimate beneficiary, ports and controlled areas, and the legality of sanctions are the primary criteria for determining business feasibility, rather than the marketability of the product.
The future of Yemen's economy depends more on political consensus, the resumption of crude oil exports, international aid, regional security, and the integration of administrative and monetary systems than on general industrial policy.
The IMF forecasts that real GDP will grow by 0.5% and consumer prices will rise by 26.5% in 2026. In contrast, the World Bank projected that the economy would contract by 1.5% in 2025 and contract by another 0.5% in 2026. The difference in forecasts between the two institutions reflects differences in assumptions regarding the surveyed regions, exchange rates and prices, and the possibility of resuming aid and crude oil exports.
Therefore, the outlook for Yemen should be interpreted based on scenarios regarding political, security, oil, and aid conditions rather than a single growth rate.
Future recovery drivers
Political Truce and Institutional Integration
The national economy can be normalized only if the functions of currency, customs, taxes, ports, and the central bank are integrated.
Resumption of crude oil exports
If crude oil exports, which have been suspended since 2022, resume, government finances and foreign exchange earnings could improve. The IMF analyzes that government revenue has decreased significantly and public spending has been sharply reduced since the suspension of exports.
International aid and development finance
It is necessary to shift from emergency relief centered on food and health to development projects that include water, electricity, education, and livelihood recovery.
Distributed infrastructure
Solar power, small-scale water purification, minigrids, and local health and agricultural facilities can be expanded in stages even before political integration.
Fisheries and agriculture
Seafood, coffee, livestock, and agri-food processing are industries capable of restoring local employment and non-oil export bases.
Port and Red Sea stability
If the Red Sea shipping route stabilizes, import freight and insurance premiums will fall, and the possibility of rebuilding port and logistics businesses will also increase.
Recovery Scenario
Scenario A — Segmented Identity
The ceasefire is maintained, but political integration and the resumption of crude oil exports are delayed, leading to reliance on international aid and imports of essential goods.
Scenario B — Stepwise Stabilization
Restoration projects for power, ports, water, and agriculture will be expanded through political negotiations, the partial resumption of crude oil exports, and international financial support.
Scenario C — Expansion of Regional Warfare
As tensions over the Red Sea, Saudi Arabia, and Iran escalate, access to ports, logistics, and aid is deteriorating, leading to further economic contraction.
For now, it is reasonable to base the scenario on the coexistence of fragmented identity and limited regional recovery .
Major Structural Challenges
- Comprehensive political consensus
- Integration of central banks and monetary systems
- Resumption of crude oil exports
- Public finance recovery
- Food and water security
- Power grid restoration
- Normalization of ports and roads
- Private sector and job recovery
- Blocking sanctions and illegal financial activities
- Shifting International Aid into Development Investment
The World Bank assesses that the private sector has maintained economic resilience even during conflicts, and that there is potential for job and livelihood recovery in key industries if institutional and macroeconomic foundations improve.
Market Position
Humanitarian Supply Market + Strategic Red Sea Reconstruction Platform
Currently focused on humanitarian aid and the supply of essential goods, it is a country of great strategic value for the long-term reconstruction of the Red Sea's logistics, ports, energy, water, and fisheries industries.
Key Opportunities
- Food and Nutrition
- Medical and Health
- Water purification and desalination
- Solar Power & ESS
- Agriculture and irrigation
- Fisheries and Cold Chain
- Ports and warehouses
- modular facilities
- Communication and disaster equipment
- Long-term infrastructure reconstruction
Recommended Strategy
Humanitarian Entry
It enters the market on a limited basis through international organization procurement and essential goods businesses.
↓
Distributed Recovery
Establish small-scale decentralized facilities in the water, power, health, and agriculture sectors.
↓
Post-Conflict Reconstruction Option
Upon improvement of politics and security, projects will be expanded to include ports, energy, and urban infrastructure.
Korea Opportunity Index
Opportunity Level: Low / Humanitarian Medium / Long-Term High
While risks in the current private commercial market are very high, Korea's technology and development cooperation experience can be utilized in the fields of humanitarian aid and long-term reconstruction.
The promising areas of cooperation for South Korea are as follows.
- Water purification and desalination
- Solar Power & ESS
- Medical devices
- Modular construction
- Fisheries and Cold Storage Logistics
- Port equipment
- disaster response
- agricultural technology
- e-government
- vocational education
It is more suitable for Korean companies to enter the market jointly with KOICA, international organizations, multilateral development banks, and accredited NGOs rather than through independent investment.
Risk Screening
Controlled areas and public security
↓
Sanctions · Beneficial Owner
↓
Ports, Logistics, Insurance
↓
Payments and aid funds
↓
Local operation and maintenance
Final Assessment
Yemen is currently a conflict zone centered on humanitarian aid and survival infrastructure demand rather than a normal commercial market, and in the long term, it possesses large-scale reconstruction potential based on the Red Sea, ports, energy, water, and fisheries.
Scope of investigation
This document was compiled by cross-referencing the latest official data, focusing on Yemen's political and economic fragmentation, the suspension of crude oil exports, food, water, electricity, and health, fisheries, Red Sea shipping, international sanctions, and the potential for long-term reconstruction.
International organizations and overseas agencies
- International Monetary Fund
- World Bank
- UN Office for the Coordination of Humanitarian Affairs
- UN Trade and Development
- World Food Programme
- Food and Agriculture Organization
- World Health Organization
- International Organization for Migration
- US Department of the Treasury, OFAC
- US Energy Information Administration
Yemen-related organizations
- internationally recognized Yemeni government
- Central Bank of Yemen–Aden
- Ministry of Planning and International Cooperation
- Ministry of Oil and Minerals
- Ministry of Agriculture and Irrigation
- Ministry of Fish Wealth
- Regional agencies related to ports and customs clearance
Since Yemen's political and administrative institutions are fragmented by region, official data must also be interpreted by distinguishing between the controlled areas and the agencies that produced them.
Republic of Korea institutions
- Ministry of Foreign Affairs
- Ministry of Trade, Industry and Energy
- KOICA
- KOTRA
- Korea Export-Import Bank
- Korea Trade Insurance Corporation
- Korea International Health Foundation
- Korea Water Resources Corporation
- Korea Energy Agency
- Ministry of Oceans and Fisheries
Key Review Materials
- IMF, Republic of Yemen: 2025 Article IV Consultation
- IMF, Yemen Country Data 2026
- World Bank, Yemen Economic Monitor: Pushing Against the Tide
- World Bank, Yemen Country Overview
- World Bank, Yemen Country Partnership Framework
- UNCTAD, Red Sea Crisis and Trade and Transport Data
- US Treasury OFAC, Sanctions and General Licenses Related to the Houthi and Yemen
- US EIA, Yemen Country Analysis
- International organizations' food, water, health, and humanitarian aid data
Writing Verification
This document was prepared according to the following criteria.
- Comparison of the IMF and World Bank's differing 2026 growth forecasts
- Explain the difference in outlook as differences in uncertainty and survey conditions.
- Reflecting the suspension of crude oil exports and the fiscal and foreign exchange crisis
- Reflection of regional segmentation in central banks, exchange rates, and customs systems
- Prioritize analysis of food, water, health, and electricity demand
- Red Sea and Bab el-Mandeb maritime risks included
- Distinction between Houthi-related sanctions and General Humanitarian Licenses
- Distinguishing between international organization procurement and the general commercial market
- Feasibility Review of Distributed Solar Power, Water Purification, and Health Facilities
- Linking Korea’s capabilities in humanitarian aid, water treatment, energy, and fisheries
- Adhere to the order of Table of Contents 0–8 of the WCI-001 Golden Template.
- Apply MarketHub World Country Intelligence standard format
Yemen possesses the strategic location of the Red Sea and Bab el-Mandeb, oil, gas, and agricultural and fisheries resources, and a long coastline, but its foundations for normal production, exports, and investment have been severely damaged by prolonged conflict and fragmentation of its national system.
The current market is centered on food, medical care, water, electricity, and humanitarian logistics, and actual business opportunities are concentrated on projects secured by international organizations, development finance, and aid funds.
Rather than pursuing independent commercial expansion, South Korea should pursue joint projects with international organizations focusing on water purification, solar power, medical services, fisheries, modular facilities, and disaster logistics. If political stability is achieved and crude oil exports and port functions are restored, the scope of cooperation can be expanded to include energy, shipping, and urban infrastructure reconstruction.
Final evaluation
Yemen is currently a country where humanitarian aid and the restoration of essential infrastructure take precedence over sales markets, but in the long term, it is a conditional future market where large-scale reconstruction demand can emerge based on its strategic location in the Red Sea.