At a critical moment when the Yemeni government is seeking to rebuild confidence in the national economy, official indicators suggest a tangible improvement in the investment climate, particularly in provinces where the internationally recognized government has regained control, most notably Hadhramaut and Socotra.
These moves come as part of a broader government effort to reassure traders and investors and to create a safe and stable environment for the return of capital that left the country in recent years, amid improving security conditions, the spread of state institutions, and growing interest among local and regional business leaders in resuming investment activity in liberated areas.
Monitoring stocks and price stability
Yemen’s Minister of Industry and Trade Mohammed al-Ashwal told Asharq Al-Awsat that the ministry issued official instructions the day before yesterday aimed at reassuring southern communities about the availability of essential commodities and price stability.
He stated that three separate memoranda were sent to the heads of the ministry’s offices in Mukalla, Seiyun, and al-Mahrah, containing clear directives to closely monitor commodity stocks and continuously track market activity on a daily basis.
Al-Ashwal said the instructions emphasized the importance of ensuring that Saudi aid reaches its intended beneficiaries and is not diverted or sold in markets, underscoring that the ministry gives this issue top priority due to its direct impact on market stability and food security.
Reassurances in three provinces
On security, the minister said conditions were reassuring and that security was stable in Hadhramaut, Seiyun, and Al Mahrah. He said the measures taken had helped boost confidence among citizens and traders alike, creating a sense of stability in market activity.
He pointed to ongoing communication with the Yemeni Saudi Business Council, noting that a meeting in Mecca resulted in a set of joint projects that reflect the strength of economic ties between the two countries and open new horizons for investment and cooperation across several vital sectors.
Normalizing the situation in Aden
Regarding the situation in Aden, the minister stated that the government is currently working to fully normalize conditions until security is firmly established, particularly in the temporary capital.
He added that the deployment of the National Shield forces would lead to the unification of the security authority in charge, which would have a positive impact on security and administrative stability and provide investors and traders with a clear counterpart to deal with.
Capital between flight and resilience
Regarding investors and business leaders in the south, al-Ashwal stated that following the Houthi coup, significant capital left the southern areas; however, some local businessmen remained resilient despite the volatility and challenges, continuing their commercial activities under extremely difficult conditions and helping to preserve a minimum level of economic activity.
He said local business leaders demonstrated honorable positions in the darkest circumstances and played a positive role in maintaining the economic cycle.
He called on traders who had left the country after the Houthi coup to return, especially to Hadhramaut, stating that the province would not be the same as it was before, given the expansion of state institutions and the consolidation of security through the army, security agencies, and local authorities.
Al-Ashwal said the country is witnessing notable economic momentum during a period in which conditions have stabilized in many southern provinces.
He said there is clear interest among business leaders who left Yemen about a decade ago and who now show a desire and readiness to return and invest again, amid improved security and economic conditions and an expanding area of stability.
Progress in Hadhramaut
He added that in recent hours, he had been in contact with the heads of chambers of commerce in Aden, Mukalla, and Taiz, reassuring them about security and stability.
He said he met with the governor of Hadhramaut on Monday, who confirmed that several practical steps had been taken to ensure the smooth functioning of commercial activity in the province.
Al-Ashwal said the impact of these steps is now clearly visible in Hadhramaut, where social and economic life has returned at a good pace, reflecting an improved business environment and a gradual revival of commercial activity.
Confidence signals to investors
Regarding government efforts to strengthen the local economy, al-Ashwal stated that the government, through the Ministry of Industry and Trade, is preparing to launch an industrial zone in Aden as a clear indicator of economic stability, alongside three other industrial zones in Hadhramaut and two in Socotra.
He said signing the contract for the Aden industrial zone would send a practical message that the economic situation is stable and developing dynamically.
Saudi role
In this context, al-Ashwal spoke at length about the importance of Saudi Arabia’s role, thanking the kingdom for its efforts to support stability in Yemen.
He said this support is ongoing and has directly contributed to strengthening economic stability and supporting state institutions.
