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Houthis Restructure Yemen’s Economy Amid Humanitarian Crisis
Confirmed
In Short: The Houthis have restructured Yemen’s commercial sector, securing billions in revenue amid a humanitarian crisis, according to economic researcher Houssam al-Saeedi.
The Houthis have restructured Yemen’s commercial sector, securing billions in revenue amid a humanitarian crisis, according to economic researcher Houssam al-Saeedi. This restructuring involves seizing companies and managing them in favor of the Houthi group, creating an internal economy parallel to the actual economy.
Al-Saeedi noted that the Houthi group established a completely separate system, using illicit channels to move weapons, oil, and money, including smuggling networks and financial laundering. The rapid advance by the Houthis down the country’s Red Sea coast has raised questions over whether the group could turn its territorial gains into new sources of revenue.
Since the Houthis’ capture of the capital Sanaa in September 2014, the group has developed a centralised financial system to collect revenues through taxes, customs duties, zakat (religious alms), and other levies. A July report by the Mokha Center for Strategic Studies estimated that this system generated direct and indirect financial resources and costs worth approximately $2.5bn annually.
The Houthis defended the move, claiming that the agencies had not renewed their registrations for three years. The Houthi group already had control of large sections of the Red Sea coast, including the major port city of Hodeidah, and the financial benefits associated with that.
What's confirmed
- The Houthis have restructured Yemen’s commercial sector, securing billions in revenue amid a humanitarian crisis, according to economic researcher Houssam al-Saeedi. This restructuring involves seizing companies and managing them in favor of the Houthi group, creating an internal economy parallel to the actual economy.
- Al-Saeedi noted that the Houthi group established a completely separate system, using illicit channels to move weapons, oil, and money, including smuggling networks and financial laundering. The rapid advance by the Houthis down the country’s Red Sea coast has raised questions over whether the group could turn its territorial gains into new sources of revenue.
- Since the Houthis’ capture of the capital Sanaa in September 2014, the group has developed a centralised financial system to collect revenues through taxes, customs duties, zakat (religious alms), and other levies. A July report by the Mokha Center for Strategic Studies estimated that this system generated direct and indirect financial resources and costs worth approximately $2.5bn annually.
- The Houthis defended the move, claiming that the agencies had not renewed their registrations for three years. The Houthi group already had control of large sections of the Red Sea coast, including the major port city of Hodeidah, and the financial benefits associated with that.
What's still developing
- In Yemen, it began, of course, with a genocidal war by the Saudis and the Emiratis on Yemen, which was supported by the entire region except for Iran and the West.
- This, according to the Saudis, was a violation of their siege on the Yemeni people, which of course Iran ignored.
- And this time around, it became clear that Yemen was far stronger than the Yemen that the Saudis were fighting before.
- The conversation covers the Houthi movement’s dramatic military advances in Yemen — including the seizure of Perim Island — the widening war against Iran, and the growing economic and political vulnerabilities of the Gulf states.