• العربية
  • Deutsch
  • Français

The National Team For Foreign Outreach - Yemen

  • العربية
  • Deutsch
  • Français

The Annual Report ( March 2022) Humanitarian Stances in Ukraine… While Suffering in Yemen! – THE ECONOMIC SITUATION

  1. Since the beginning of the military operations carried out by the Saudi-led War Coalition against Yemen on March 26th, 2015 along with their full blockade and arbitrary restrictions, the economic sector has been the top priority for the direct and deliberate targets of the air strikes launched by the Aggression Coalition states. Consequently, the economic situation deteriorated significantly, impacting the livelihood and lives of citizens, and increasing their sufferings dramatically.
  2. The Saudi-led War Coalition states 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 resources as well as sea, air and land ports. They have also resorted to practice systematic policies so as to serve their interests in destroying the national economy, which has greatly affected the lives of millions of Yemeni citizens.
  3. The Saudi-led War Coalition states 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 the International Law, which affirm 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 these years of war on Yemen since March 2015. 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 Saudi-led War Coalition states on Yemen, directly targeting the commercial, industrial, agricultural, fish and animal infrastructures; transferring the Central Bank of Yemen (CBY) to Aden and controlling it; imposing the land, sea and air blockade on the economic and commercial activities; putting arbitrary restrictions on the import of oil products and foodstuffs; printing billions of illegal banknotes; and imposing other procedures and practices with the aim of starving the Yemeni people.
  5. In the seventh year of the war on Yemen, the economic situation exacerbated significantly, causing an increase in human suffering among families in particular and the Yemeni society in general. All that was a result of the continuous war on Yemen led by the aggression coalition states (USA, KSA and UAE), targeting the economic infrastructure and imposing arbitrary restrictions, among other measures, that have led to the collapse of the Yemeni economy and the creation of deep humanitarian and social crises. The economic cycle in Yemen has been suspended, and thousands of workers have been displaced from economic facilities that have been totally or partially destroyed. Moreover, these states prevented the National Salvation Government and the private sector from importing and exporting various domestic and external materials and products.
  6. The Saudi-led War Coalition states and their mercenaries deliberately looted Yemeni crude oil export revenues, which were estimated during 2021 at a cost of 1.76 billion US Dollar.
  7. As a result of these and other factors, the local economy contracted by more than 50%, the national currency exchange rate deteriorated by more than 186%, and the Yemeni Riyal lost a large part of its purchasing power. Likewise, the Yemeni economic output has lost $126 billion, the per capita GDP has declined by about two-thirds, and the middle class has eroded, especially the employee segment that depends on the government salary as a main source of income, which has been suspended since 2016. There has been a sharp deterioration in the basic social service system, a decline in the oil revenues, which constitute 70% of the country’s income, and an increase in the unemployment rate to more than 35%, each of which leads more than 80% of the population to poverty.

Salary File

  1. Another year has passed, as the salary crisis enters its sixth year with a continuous interruption of the public service employees’ salaries. Since the transfer of CBY administration from the capital Sana’a to the governorate of Aden in August 2016, salaries have been subject to political, partisan and regional considerations practiced by the Saudi-led War Coalition states and their mercenaries at a time when the conditions of (1.2) million public sector employees are exacerbating. This threatens to disrupt and suspend government institutions – whether in the northern or southern governorates – from performing their functions, especially the provision of services; hence, leading to paralyzing the life motion.
  2. With the continuing war and military escalation by the Saudi-led War Coalition states during 2021 and early 2022, while tightening the noose on people by preventing the entry of private sector ships loaded with foodstuffs, medicines and oil products, a decline happens towards a catastrophic economic and living situation that is seen as the worst of its kind in the world in decades. Since the cessation of salaries was not sufficient to increase the suffering, the tragedy exacerbated with the high unemployment rates and the scarcity of job opportunities. All this has led to the rise of popular discontent against the international community and their voices escalated to call for a radical solution to the crisis and an end to the suffering.
  3. The public sector employees in Yemen, especially in the education sector in governorates under the control of the National Salvation Government in Sana’a, continue the educational process despite their suffering from the cessation of salaries as well as the suspension of operating expenses for educational institutions, which actually caused considerable damage to schools, public universities and technical and technological institutes. Generally speaking, it has had a significant negative impact on the education enrollment, especially for children.
  4. The Yemeni governorates under the Saudi-Emirati occupation witnessed protests, popular vigils and calls for a strike and civil disobedience as a result of the salary interruption. This crisis was provoked due to the mismanagement of state resources, the continuous war on services, and the purchase of loyalties and commitments, into which billions of riyals are pumped to create chaos and collapse of the country. All of these matters happen at a time when the mercenary leaders of the Saudi-led War Coalition states have looted more than 85% of Yemen’s revenues from gas, crude oil, ports, taxes and customs. The sums thereof are directly deposited into their own accounts abroad under the auspices and facilitation of the aggression coalition states led by the USA.

Targeting and Collapsing the National Currency

  1. The Saudi-led War Coalition states committed multiple deliberate economic crimes, targeting the purchasing power of the national currency with a view to striking the living and economic stability in Yemen. They transformed the Yemeni economy infrastructure into military targets from the outset of their aggression and blockade, violating international laws and transgressing all ethics of war. The aggression coalition states launched an economic war parallel with the military war that started from the first moments on our Yemeni people on March 26th, 2015. They still use the economic war as a tool and a means of the blockade imposed on the Yemeni people amid the silence, complicity and betrayal of the world.
  2. The local currency exchange rate deteriorated against foreign currencies and the Yemeni Riyal lost a large part of its purchasing power, leading to an increase in the prices of food commodities, an impact on the citizens’ livelihoods, exacerbation of food insecurity, and occurrence of a crisis in oil products. These were based on fabricated reasons by the US-Saudi-Emirati coalition, which are part of the economic war on Yemen.
  3. With every progress in resolving the humanitarian situation in Yemen, the efforts to end war on Yemen are hampered because they are taking the economic aspect as a weapon and infiltrating into using it to achieve progress so as to make a difference at the negotiating table. For instance, the Saudi-led War Coalition states instructed its mercenaries to take decisions to print hundreds of billions of riyals outside banking policy.
  4. The decision on preventing the circulation and possession of the illegal currency, that was printed by the Coalition mercenaries, led to the stability of the dollar exchange rate in the governorates under the control of the Supreme Political Council in Sana’a at less than 600 Yemeni Riyals per 1 US Dollar.
  5. The Saudi-led War Coalition states and their mercenaries printed forged banknotes similar to the old large-sized 1000-banknote, corresponding to the same date 1438 AH/2017 AD. They injected large amounts thereof into those governorates under their control. The volume of banknotes printed on the orders of the aggression coalition states and their mercenaries until June 2021 amounted to 5 trillion and 320 billion Yemeni riyals, i.e., equivalent to three times the amount issued by the Central Bank of Yemen (CBY) in Sana’a from 1964 to 2014.
  6. The value of exchange rate of the Yemeni Riyal collapsed against the US Dollar in those governorates under the control of the Saudi-Emirati occupation, with a failed monetary policy and the printing of a currency without an economic and legal cover. This led to a sharp decline in the foreign exchange reserve in the Central Bank in Aden, which resulted in weakening its ability to provide the market’s needs of foreign currency. The exchange rates of the Yemeni Riyal, against foreign currencies in Aden and the occupied areas, amounted approximately to 1,800 Yemeni Riyals per 1 US Dollar, which was reflected on the citizens’ living reality in those governorates. On the contrary, the exchange rates in the capital, Sana’a, remained balanced to a large extent; i.e., the exchange rate of 1 US Dollar reached only 600 Yemeni Riyals.
  7. The commission for money transfers between Sana’a and Aden exceeded 150%, so that citizens turn to use foreign currencies in their transfers.
  8. In addition to the accelerating collapse of the Yemeni Riyal, Hadi government increased the customs duties in Aden by doubling the US Dollar exchange rate in customs transactions from 250 to 500 Yemeni Riyals per 1 US Dollar. This is an absurd and ill-advised decision taken in a systematic process and arbitrary measures in the context of the economic war targeting all Yemenis. Hence, this has led to a shortage of food, pharmaceutical and consumer goods in the Yemeni market, exacerbating the situation and doubling the poverty and unemployment rates.

Oil and Gas

  1. The Saudi-led War Coalition continued their unjust siege through the piracy activities aimed at impeding the arrival of oil derivatives ships to the port of Hodeidah. This has increased the suffering of the Yemeni people in various areas of life. The Yemen Petroleum Company (YPC) estimated the direct losses of the national economy as a result of the cost differentials in fuel price due to the blockade at more than $600 million US Dollar since the beginning of 2021. Meanwhile, the indirect losses are estimated at more than $12 billion US Dollar.
  2. The unstoppable oil derivatives crisis has been going on year after year, leaving very negative impacts on the lives of citizens, and casting dark shadows on the various economic and service aspects. This has exacerbated the difficult circumstances under which the Yemeni citizens live as a result of the war that has been going on persistently for seven years. In fact, the activities of all economic and service sectors, especially the health ones, upon which the lives of citizens depend, are conditioned by the availability of oil derivatives. Hence, the Saudi-led Coalition of Aggression attempts to use the oil derivatives as leverage to achieve what its military arsenal has failed to do, killing all aspects of life and hope in Yemen, and completely paralyzing the Yemeni economy. This is mainly because they know the extent to which the economic and service life is linked to the oil derivatives sector, which constitutes the lifeblood of many economic sectors. The impacts of such an economic war were reflected as follows:
  • Transport fares have risen with a ratio between 70% and 150%; and since mid-last year, they are estimated to have risen by 180%, especially transport fares between various cities and governorates.
  • The continuous monthly changes in fuel prices coincided with the disruption in the prices of basic food commodities (wheat, flour, sugar, rice, cooking oil), and with a significant increase in inflation by more than 60%.
  • Drug prices increased by 53%
  • More than two-thirds of the agricultural sector was affected and agricultural crops were damaged. Besides, almost 1.2 million agricultural holders were affected in various governorates.
  • The prices of electricity services provided by private-sector generators have risen dramatically, as the public power plants are completely stopped.
  • The prices of water tankers and vehicles transporting water to homes increased at varying rates between 100 – 300%.
  • Supply for 2000 petrol stations has stopped.
  • Supply for more than 1,000 industrial facilities has stopped.
  • More than 5,400 hospitals and health centers have been suspended.
  • More than 22,975 water projects have been discontinued.
  • Supply for more than 79% of the telecommunication services sector has stopped.
  • Supply for more than 85% of the power plants has been suspended.
  • Supply for more than 1265 garbage vehicles was stopped.
  • In the context of the conflict over oil, the Saudi-led War Coalition has been controlling the oil regions in Yemen, specifically in the southern and eastern governorates of Yemen, since the beginning of the war. They have largely looted crude oil revenues. They also deliberately disrupted the oil export pipeline extending from Safer in Marib to Ras Issa port in Hodeidah to deprive the areas under the control of the Supreme Political Council of their resources.
  • Oil and gas production facilities and ports are subject to the control of the Saudi-led War Coalition states, which are systematically plundering, skimming and looting the revenues of these facilities.
  • These looted oil and gas revenues could cover the salaries of public sector employees, finance imports of basic commodities, calm exchange rate fluctuations, reduce inflation waves, resume the monetary cycle in the national economy, and ease the humanitarian crisis in all regions of Yemen.
  • The direct and indirect losses of the oil and mineral sector have exceeded 57 billion and 276 million and 613 thousand US Dollar.
  • The so-called Hadi Government, backed by the Saudi-led Coalition, continues to plunder crude oil export revenues, which were estimated during 2021 at $2 billion, in a deliberate tampering with the State’s crude oil resources.
  1. The Saud-led War Coalition as well as the United Nations and its organizations did not pay any attention to the warnings, appeals, protests and all the statements issued by the people and the various service sectors affected and threatened to stop working as a result of the fuel ships detention. They have been preventing the Yemeni people from their legitimate right to import fuel, as if Yemen were no longer part of this false world community, which is based on hypocrisy and egocentric interests.

Industrial Enterprises and Production Facilities

  1. The Saudi-led War Coalition continues to directly target economic facilities and services to achieve the maximum possible level in the human suffering of the Yemeni people.
  2. The economic and production facilities have suffered great losses during the seventh year of the Saudi-led War Coalition against Yemen through direct targeting by launching hundreds of air and sea raids on various industrial plants and production facilities, and indirectly by imposing sieges and arbitrary restrictions. This has led to a significant decline in production and coverage of the local market, causing a large part of it to stop operating, with the aim to starve and kill the Yemeni people. The systematic destruction of these facilities can be pointed out as follows:
  • The destruction and damage of (3) airports, (2) seaports, and (13) power stations and generators, as well as (15) networks and telecommunication centers, and (469) tanks and water networks.
  • The destruction and damage of (6) factories, (10) fuel tankers, (1,436) commercial facilities, (18) poultry and livestock farms, in addition to (1,828) means of transportation, (8) fishing boats, and (66) food stores, (4) petrol stations, (9) markets, and (117) food trucks.
  • In a dangerous precedent aiming at isolating Yemen from the external world, the warplanes of the Saudi-led Coalition targeted the telecommunication building in the city of Hodeidah, where the International Internet Gateway is located, which is the main portal of internet connection in Yemen. This led to the interruption of internet service in all Yemeni governorates, causing the cessation of remittances from abroad, which is the main lifeline for many Yemenis, due to the interruption of communication with international money exchange companies, bank correspondence and transactions with the international financial sector, and loss of communication and correspondence among people. This clearly shows the huge humanitarian problems resulting from cutting-off the Internet service.
  • The global internet watchdog net-blocks estimated that the material losses for the total outage of internet service in Yemen amount to nearly 4 million US Dollar per day.
  • One billion and 400 thousand US Dollar are the losses of the telecommunication sector as a result of the direct targeting of the Saud-led Coalition’s warplanes attacks on Yemen.
  • The losses of the electricity sector as a result of the direct targeting of the Saud-led Coalition’s warplanes strikes amount to one billion and 948 thousand US Dollar.

« 1 of 4 »
Play Video

Statistics

Close