The National Team For Foreign Outreach - Yemen

1. Since the beginning of the military operations carried out by the War Coalition countries against Yemen on March 26, 2015 along with their arbitrary restrictions, the economic sector has been the top priority for the direct and deliberate targets of the air strikes carried out by the War Coalition countries. Therefore, the economic situation has been deteriorated significantly, impacting the livelihood and lives of citizens, and increasing their sufferings dramatically.
2. The War Coalition countries occupied a number of southern governorates and another part of the northern governorates (Marib), where they took over and governed the most vital sectors such as oil and gas, sea, air and land ports. They have also resorted to systematic policies, serving their interests in destroying the national economy, which has greatly affected the lives of millions of citizens.
3. The War Coalition countries inflicted extensive damage to Yemen’s productive capabilities, despite the calls of human rights organizations and United Nations urging not to target Yemen’s economy and to avoid using it as a method of warfare, owing to the impact on the lives of millions of civilians, and in accordance with the rules and provisions of international law, which affirms that targeting the economy as a means of warfare is a war crime.
4. Production declined in all sectors and economic activities, achieving negative growth rates during the six years between March 2015 and March 2021. The national economy suffered substantial losses. The economic growth indicators, too, decreased to the lowest level, due to the arbitrary measures and restrictions that were taken and imposed by the War Coalition countries. Key measures and restrictions include the following:
   • Systematically and directly targeting the infrastructure and state institutions and destroying the commercial, industrial, agricultural, fish and animal facilities as well as other public and private facilities.
   • Taking over the Central Bank after moving its main headquarters from the Capital City of Sana’a to Aden governorate, and suspending the salary payments.
   • Imposing land, sea and air blockade on the economic activity and placing arbitrary restrictions on the import of gas, oil, foodstuffs, and drugs.
   • Targeting the national capital and taking over and exhausting the financial resources.
   • Triggering inflation in the money supply by printing billions of illegal banknotes and adopting fiscal and monetary policies aimed at weakening the national currency.
   • Targeting and standing against Yemeni fishermen across the coasts stretching from Midi to Nishtun; killing hundreds of them; sinking fishing boats; tampering with fisheries in the Yemeni territorial waters by using internationally prohibited means; and deliberately polluting the marine environment.

FIRST: Targeting Industrial and Production Facilities

1. During the six years of the Coalition countries’ war on Yemen, economic and production facilities suffered significant losses through direct targeting with hundreds of air and sea strikes on various industrial and production facilities and indirectly by imposing a blockade and arbitrary restrictions. This led to a significant decline in production, shortage in the coverage of the local market, and cessation of a large part of it, with the aim of starving and killing the Yemeni people. The systematic destruction of these facilities can be summed up as follows:
   • Destruction and damage of (15) airports, (16) ports, (307) power plants and generators, in addition to (551) networks and communication stations, (2,288) tanks and water networks, (1,978) public enterprises, (4,764) roads and bridges.
   • Destruction and damage of (395) factories, (292) fuel tankers, (11,387) commercial enterprises, (416) poultry and livestock farms, in addition to (7,495) means of transport, (464) fishing boats, and (904) food stores (394) fuel stations, (680) markets, and (815) food trucks.
   • Destruction and damage of more than 150 investment firms, in addition to the suspension of hundreds of commercial companies from carrying out their economic and investment activities and programs.
2. Estimates of losses in the productive and economic sectors during the 6 years of the war on Yemen:
   • 10 billion and 600 million dollars in losses from the electricity sector
   • 45 billion and 483 million dollars in losses from the oil and gas sector.
   • 111 billion and 279 million and 270 thousand dollars in losses from the agricultural sector.
   • 10 billion dollars in losses from the fisheries sector.
   • 7 billion dollars in losses from the transport sectors (maritime, air and land sectors).
   • 5 billion and 452 million and 572 dollars in losses from the telecommunications and postal service sector.
   • 383 billion and 646 million and 369 thousand dollars in losses in the water and environmental sectors.
   • 5 billion dollars in losses of the tourism sector.
   • 5 billion and 277 million dollars in losses of the Civil Aviation and Meteorology sector.
   • 207 million and 346 thousand dollars in losses from the General Authority for Regulating Land Transport Affairs.
   • 3.3 billion dollars in losses in the road and public works sector.
3. The private sector in Yemen incurred heavy losses during the years of the war on Yemen, estimated to be between 25 and 27 billion dollars, according to a government report. Losses were concentrated on the wholesale trade sector, restaurants and hotels. They had the largest share of those losses, at a rate of about 18%, followed by the transport, storage and communications sectors with 16%, then the construction sector with 11.5%, finance, insurance and real estate sectors with about 9.6%, agriculture and fishing with 9%, and then the manufacturing sector with 8%.
4. The Coalition of War on Yemen led by US, KSA, and UAE and their affiliated armed groups deliberately turned some industrial areas into battlegrounds, as in Hodeidah governorate, whose industrial, commercial and production facilities were targeted by the coalition countries and their mercenaries. This caused more than 27 thousand male and female workers to lose their jobs, by being laid off after the destruction and damage of investment projects. This directly affected the lives of thousands of families dependent on their breadwinners who were laid off from their jobs. Moreover, there has been tremendous destruction to the infrastructure, economy and trade in the various governorates of the Republic. As a result, the Yemeni people reached the fifth stage in the interim classification, which is the famine stage. This confirms that Yemen is suffering from a severe humanitarian disaster.

SECOND: Relocating CBY Administration, Freezing Funds Movement & Interrupting Salary Disbursement

1. In September 2016, the decision to disrupt the CBY functions in the Capital, Sana’a and transferring its administration to the Governorate of Aden, which is occupied by Saudi Arabia and the UAE, falls within the series of economic crimes that targeted the national economy, monetary and livelihood stability. It is a violation of the Yemeni constitution and the law of establishing the Central Bank of Yemen. They directed its duties in a way that did not serve the interests of the Yemeni people, and interrupted the payment of public sector employees (civilians, military personnel and retirees), despite the fact that the War Coalition countries seize 90% of the resources of the Republic of Yemen.
2. Since the transfer of the Central Bank from the Capital, Sana’a, to the governorate of Aden in August 2016, the salaries of more than one million two hundred and fifty thousand employees have suspended since September 2016 until now. Since that time, the Salary Issue has been subjected to international, regional and partisan political calculations, while the conditions of government employees have been deteriorating, leading to a humanitarian disaster. Public institutions have also threatened to completely stop providing essential services, which has resulted in paralyzing the daily life movements of most citizens. Meanwhile, the so-called Hadi government continues to monopolize oil and gas revenues and refuses to take responsibility for paying employees’ salaries.
3. During the ruling period of the Supreme Revolutionary Committee, the Central Bank in Sana’a used to pay the salaries (for all State employees in the civilian and military sectors in all governorates of the Republic) in addition to providing other necessary needs. However, after the relocation of the Central Bank administration to Aden Governorate in September 2016, the National Salvation Government was unable to disburse the salaries due to the lack of local revenues, which could cover only 8.5% of salaries, according to the 2014 budget.
4. The economic impacts of the decision to transfer the administration of CBY operations from the Yemeni Capital, Sana’a, to Aden Governorate in September 2016 are:
   • Salary disbursement has been suspended for approximately one million and 250 thousand public servants.
   • Conflict not only in the Yemeni community confidence, but also in the international community, regarding the consequences of the decision and its social harms, especially as Hadi and Riyadh government have failed to create stability in Aden.
   • It has direct and negative impacts on companies, enterprises, merchants and businessmen, as most of the owners of enterprises and companies lost confidence in the process of importing goods across the governorate of Aden.
   • The significant lack of liquidity has dramatically affected the banking system in many provinces.
   • There is a low purchasing power against other currencies.
   • The prices of all commodities have increased so dramatically that most members of the society are incapable to provide the essential needs and supplies. Consequently, the poverty rates have increased, many commodities have disappeared and the prices of other commodities have increased significantly.
   • Unemployment rates rose due to the lockdown of many companies, enterprises and factories.
   • The Central Bank in Aden deliberately stopped periodic allocations to the other banks in Sana’a and other governorates controlled by the Supreme Political Council, in which 85% of the Yemeni banking sector operates, as it is a consumer and commercial market for most financial transactions and domestic and foreign money transfers, from cash liquidity that was given to banks to meet administrative expenses and depositors’ cash benefits. This eventually put Yemeni banks in a crisis, as they could not pay the depositors’ interest.
   • The Central Bank of Aden imposed restrictions on domestic and foreign remittance networks in order to control them, including Western Union, MoneyGram, Shift and other networks, because they do not have work permits from it. These networks benefit 27% of the population who receive remittances from expatriates.
5. Based on Stockholm Agreement, the Council of Ministers in Sana’a issued a resolution to implement the economic initiative of the Supreme Political Council regarding opening a special account in Hodeidah CBY branch. The revenues of the ports of Hodeidah, Al-Salif and Ras Issa are to be deposited to this account and used for the payment of all the public sector employees’ salaries, pursuant to Stockholm understandings of the economic aspect.
6. The Yemeni Government in Sana’a called the United Nations to take its responsibilities seriously and compel Saudi Arabia, the UAE and their mercenaries to implement and fulfill their obligations by supplying the deficit amount between the total costs of salaries and the balance accumulated in the Salary Account. However, they did not fulfill their obligations and continued to plunder the oil and gas revenues as well as the port revenues.

THIRD: Imposing a Land, Sea and Air Blockade on Economic Activities

1. The Coalition of War on Yemen has been imposing a comprehensive land, sea, and air blockade and arbitrary restrictions on Yemen in general for six years. They continue to detain and prevent entry of the essential materials and goods necessary for the living requirements of the Yemeni people. This has created great difficulties, obstacles, problems and losses for international shipping companies upon entering the Yemeni ports. They also expose shipping companies and importers to very large losses due to demurrage, detention charges, and failure to unload the cargo in Yemeni ports on the specified date. This has led to the reluctance of international shipping companies to ship goods to Yemeni ports and contributed to the high costs of imported food and medicine shipments. It has also created stifling fuel crises, tightening the screws on citizens and increasing their suffering, as well as creating a severe crisis in the operation of hospitals, factories and means of transportation.
2. This comprehensive embargo has made merchants to ship goods first to the ports of neighboring countries, especially Dubai, and then ship them from Dubai by land to Yemen, taking them through Yemeni land ports, especially Wadia land port. From there, they are transported via land transport lines that witness violent combat confrontations and in such a way that makes them vulnerable to great risks. In fact, some of these shipments were targeted by the Coalition Countries’ air strikes, while others were subjected to interruptions and extortion, especially in areas controlled by the war coalition countries and their mercenaries. They have also to pay additional amounts in order to allow their entry from the port of Wadia, then via Mareb to the Capital Secretariat and other governorates. In addition, the significant increase in transportation costs, which have been doubled, has led to a very high increase in the price of these commodities in local markets. This, in turn, increases the suffering of citizens and exhausts all of their savings that they collected during the past years.
3. The blockade of the War Coalition Countries on the port of Hodeidah caused an increase in transportation costs. All Yemeni governorates have experienced an unprecedented stifling crisis in fuel supplies, as the counties of War Coalition against Yemen, led by the US, KSA and UAE, continue to detain oil ships and prevent them from docking in the port of Hodeidah. This exacerbated the humanitarian situation and doubled the demurrage and detention charges on ships and oil tankers, resulting in a complete paralysis and total disruption of the health and service sectors. According to the Ministry of Oil and Minerals, the period of detention of oil derivatives ships by the Coalition of War on Yemen exceeded 1500 days, with total detention charges exceeding 29 million dollars.
4. Under the embargo, COVID-19 pandemic has exacerbated the economic situation, which was further deteriorated, especially since remittances to Yemen decreased by 80 % during the first four months of 2020 as a result of job losses and the disruption of the remaining commercial and industrial activities by 70 %. This caused about 80 % of workers in the private sector to lose their jobs. The proportion amounted to 90 % as a result of the measures taken to combat COVID-19 pandemic.

FOURTH: Seizing and Depleting Financial Resources

1. Since the beginning of war on Yemen, the Coalition of War on Yemen, led by the US, KSA, and UAE, have worked to stop oil and gas exports, interrupt the country’s revenues from foreign currencies and decrease foreign currencies transfers to Yemen from abroad. They also worked to stop the World Bank operations in Yemen, which are estimated to be almost one billion dollars annually, and to exhaust cash reserves at the Central Bank of Yemen. Moreover, the offices of foreign organizations, embassies, missions, consulates and international commercial attaches in Yemen have been closed and Arab and foreign development projects have been suspended.
2. The countries of the Coalition of War on Yemen took control of the oil sector, depriving the state of 75 percent of the resources that had been supplying the public treasury with hard currency. Yemen’s crude oil production in 2018 exceeded 18 million barrels, with a value of one billion dollars. In 2019, crude oil production reached 29 million and 692 thousand barrels, with a total value of two billion and 300 million dollars. In 2020, crude oil production amounted to 31 million 620 thousand barrels, with a total value of 2 billion and 24 million dollars.
3. During the past years of war on Yemen, all oil and gas resources have been at the disposal of Saudi Arabia, the UAE and their mercenaries, and the total value of Yemeni crude oil that was sold during the years 2018-2020 amounted to five billion and 620 thousand dollars. These huge amounts would have been sufficient to pay the salaries of public sector employees. Those funds were supplied to the National Bank in Saudi Arabia and to be at the disposal of the War Coalition, which uses them to besiege the Yemeni people.
4. The plunder of Yemen’s oil and gas resources by the War Coalition Countries is still going on until the moment of writing this report. The War Coalition Countries have been practicing political blackmail by detaining oil derivatives ships, imposing a comprehensive blockade, and targeting directly the economic and productive sectors. This led to the aggravation of the citizens’ suffering.
5. The countries of War Coalition against Yemen diverted all commercial imports from Hodeidah to the port of Aden. In addition to a two-billion-dollar deposit, any grants, loans, and revenues for Aden or Marib branches are delivered at the Central Bank branch in Aden.
6. The Yemeni government in Sana’a also showed that customs and tax revenues for oil derivatives vessels amounted to (6,212,231,986 YR) during the month of November 2019. It was deposited into the Salary Initiative Account. The total revenues delivered to the Salary Account at the Central Bank of Yemen in Hodeidah Governorate, as of November 30, 2019, was (11,863,474,243 YR).
7. The countries of War Coalition against Yemen continued to tighten the financial and economic restrictions on the Yemeni people and deprived them of all sources of income by transferring telecommunication companies from Sana’a to Aden and depleting their resources in military actions against the Yemeni people. They also imposed a blanket ban on the entry of telecommunication and correspondence equipment and systems into Yemen.
8. Hundreds of production and industrial facilities were suspended due to banning the entry of raw materials and fuel. Consequently, thousands of workers lost their livelihoods, and the unemployment rate rose to 85%.

FIFTH: Printing Banknotes outside Banking and Economic Policies and Creating Inflation

1. One of the reasons for increasing the internal and external debt is due to the fact that CBY, Aden Branch, printed illegal banknotes for billions of Yemeni riyals without cash cover. This caused an increase in the money supply and created inflation that resulted in high levels of poverty and deterioration in the standard of living. Such measures taken by the Central Bank in Aden reflect a state of confusion and failure in managing the financial and monetary policy. Besides, the decision of printing new banknotes does not have any regard to the generally accepted considerations.
2. The deterioration in the national currency value is due to the misguided banking policies pursued by the Central Bank in Aden since the Bank’s administration was transferred from Sana’a and also printing new banknotes with a total amount that reached to one trillion and 700 billion riyals within three years. This is actually more than twice what the Central Bank in Sana’a has printed since its founding 40 years ago, as the money supply in 2015 did not exceed 850 billion riyals.
3. The value of Yemeni Riyal against the US dollar keeps on deteriorating in the southern region of Yemen, which is controlled by the KSA-UAE occupation, where the exchange rate has reached almost 900 YR for one US dollar. This showed confusion in procedures as well as a widespread financial and administrative corruption, which subsequently increased food prices and plunged the country into a deep humanitarian crisis. On the contrary, the Yemeni Riyal maintained a state of stability in the areas controlled by the National Salvation Government in Sana’a, as the dollar rate there have not exceeded the limits of 612 riyals against the US dollar.

SIXTH: Targeting Fishermen and the Fisheries Sector

1. Losses in the infrastructure of the fishery sector amounted to more than 137 million dollars, while the number of boats totally destroyed in the coasts of Hodeidah and Hajjah governorates reached 250 boats, at a total cost of more than 2 million dollars.
2. The losses resulting from the interruption of the implementation of the fishery projects in the Red Sea are approximately two billion dollars. Meanwhile, the total losses due to unlicensed poaching under the protection of the War Coalition ships amounted to more than three billion dollars.
3. The total assessment of the environmental damage resulting from the war is more than two million and 500 thousand dollars; and the losses of industries and services associated with fishing activities are more than 21 million dollars.
4. Losses in fees and revenues amounted to more than 120 million dollars, while 40 thousand fishermen were affected as a result of the war and the siege. The number of employees who lost their jobs in the fishery sector reached more than 100 official and contracted employees, and more than 21 thousand auxiliary workers.
5. Forty-five exporters of fish and marine life, both companies and individuals, were affected by their activities during the years of the war on Yemen and the blockade. There is only one export company operating on a limited scale. In addition, 50 factories and plants stopped their activities due to the decline in fish production.
6. The countries of War Coalition against Yemen have caused direct damage to the living standard of more than two million citizens in coastal cities and villages along the coastal strip of the Red Sea.