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The National Team For Foreign Outreach - Yemen

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ECONOMIC SITUATION – September 2022

  1. The salaries of more than 1.2 million public sector employees have been interrupted since the transfer of the Central Bank’s operations from the Capital, Sana’a, to Aden Governorate in August 2016. This has further exacerbated the human suffering, increased the widespread poverty among the employees, who fail to fulfill their families’ financial obligations such as housing, food, etc. It has also led to a high unemployment rate and a collapse of public services.
  2. The salary issue crisis was not resolved during the first two months of the third truce, which was announced in the statement of the UN envoy confirming the parties’ commitment to reach an expanded truce agreement. This agreement should give an opportunity to approve an appropriate mechanism for paying the salaries of public sector employees and retirees regularly, providing fuel and ensuring its regular flow through Hodeidah ports, as well as operating more flights to and from Sana’a airport, and reopening roads in Taiz and other governorates. This is what the government of the Supreme Political Council in Sana’a demanded as a prerequisite for extending or expanding this truce.
  3. The economic collapse that Yemen is witnessing due to the Saudi-led coalition is accompanied with a new crisis resulting from the repercussions provoked by the Ukraine war on the international economy. Besides, the energy crisis in Europe and North America has had a profound impact on the Yemenis’ remittances to their families, causing a loss of almost 35% of the total remittances to Yemen from those countries. In fact, remittances constitute an important source of income for hundreds of thousands of families. It is the only major resource left in Yemen, especially after the countries of the war coalition led by Saudi Arabia and the US caused most of the public resources in Yemen to stop.
  4. The Saudi-led Coalition and their mercenaries continue to loot the revenues of crude oil and gas, which could revive Yemen’s economy, reduce famine and alleviate the humanitarian disaster. Every two months, two million barrels of oil are exported from Hadhramaut and 600,000 barrels from Shabwah every 20 days; in addition to the crude oil that is transported from Marib. However, all these revenues go to Saudi and UAE banks.
  5. In a clear violation of the terms of the UN-declared truce, the Saudi-led Coalition continue to detain oil derivatives ships, despite completing all the procedures of inspection through the United Nations Verification and Inspection Mechanism in Djibouti (UNVIM) and obtaining UN pass permits confirming that the cargo conforms to the stipulated standards for docking at Hodeidah port, which in turn raises the ships’ demurrage charges.
  6. Despite the truce declared by the United Nations, the Saudi-led Coalition of War on Yemen continues to directly target economic facilities and services with a view to achieving the maximum possible extent in increasing the human suffering of the Yemeni people.

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