Tenth Year of Conflict Begins Amid Continued Collapse of Yemen's Economy

Nine years have passed since the Saudi-led Arab coalition launched a military campaign in Yemen on March 26, 2015, to restore the UN-recognized government to Sanaa and incapacitate the Iran-backed Houthi group. 

Neither the conflict ended, nor the Houthis had been purged from Sanaa. In view of this prolonged conflict, Yemen's economy is presently in ruins, and over half of the population requires humanitarian assistance. 

UN reports say four in every five Yemenis todayface poverty.

"Yemenis face catastrophic needs driven by the growing economic crisis and ongoing,multifaceted conflict, exacerbating poverty and hunger. Half the Yemeni population, more than 18 million people, urgently need humanitarian assistance to survive," the Norwegian Refugee Council (NRC), an international independent humanitarian organization, said yesterday. 

Since April 2022, hostilities have declined on the frontlines, and the Saudi-led coalition airstrikes have stopped. However, no measures have been taken to improve or stabilize the economy, and the humanitarian crisis continues to be one of the worst in the world. 

The NRC said, "Rising inflation, irregular or delayed payment of civil servant salaries, and the collapse of basic services have left people unable to meet their basic needs."

Yemen's economic landscape severely impacts food security, with staple food prices surging by up to 45 percent above the usual rates. The trend is projected to continue into 2024. This price escalation is paralleled by a worrying devaluation of the Yemeni Rial, which has seen a steep drop in its value in recent months, placing further stress on the purchasing power of Yemeni families.

According to the humanitarian agency, recent surveys have identified a 12 percent increase in people suffering from acute food insecurity. This reality underscores the continued deterioration in the humanitarian situation, with nearly half of the population in affected areas across the country striving to fulfill minimal food needs. 

Fresh statistics from the United Nations Development Programme (UNDP) indicate four in every five people in Yemen, almost 83 percent of the population, live in multidimensional poverty.

According to UNDP figures, the lack of schooling and access to adequate sanitation were two of the most concerning dimensions of poverty, affecting more than 70 percent of the population. 

The latest escalations in the Red Sea also risk deepening the humanitarian crisis in Yemen. The UN Food and Agriculture Organization said last month that the food security situation in Yemen is already fragile and the Red Sea crisis will cause additional harm to an already dire situation.

The Organization added that the continued escalations in the Red will drive a further rise in food insecurity in Yemen, mainly affecting the most vulnerable populations, including the poor and internally displaced.

Before the Red Sea escalations, Yemenis hoped peace talks would contribute to resolving the economic crisis and offer prompt economic relief.

However, Yemen's Houthi group vows to continue its operations in the Red Sea regardless of the consequences, saying it acts in solidarity with Palestinians in Gaza, where Israel has killed over 30000 people since October last year. 

Informed sources told Sheba Intelligence Saudi Arabia's desire to achieve a Yemeni-Yemeni agreement has faced many obstacles, including the "impossible conditions and demands" of the Houthis, the ongoing rifts occurring among the government's allies, and the American tendency to obstruct any peace agreement with the Houthis as they continue to threaten merchant ships.

As the political rifts remain unsettled in Yemen and military escalations continue to expand, the humanitarian and economic ordeals will keep worsening in the country.