Economy

Yemen's economy is one of the least developed on earth and in some respects has remained virtually unchanged for centuries. However, since the mid 20th century, much has been done to begin modernizing the economy. Large amounts of foreign aid as well as money sent to family members by Yemenis working abroad have helped Yemen to shift from a barter economy to a money economy and brought substantial economic and social change. Yemen's basic currency unit is the Yemeni riyal.

Agriculture sustains the great majority of the people. Construction of dams and implementation of agricultural development projects have turned the desert areas into productive farmlands. But the southern part of Yemen remains uncultivable owing to scarcity of water. The principal crops are sorghum, wheat, barley, corn, and other grains and many fruits and vegetables. Khat (a narcotic leaf chewed by many Yemenis), cotton, and coffee are also important cash crops. Most farming is done on steep, terraced slopes. Ancient water channels called aqueducts carry water to these terraces. Dates and cotton are grown on the Tihamah region. The Yemenis also raise a variety of animals, mostly sheep and goats.

Handicrafts account for many of the personal and household goods produced in Yemen. Other than weaving and dyeing, people also make rope, glassware, harnesses, saddles, and pottery. These goods are sold in the village bazaars (market places). There are an increasing number of modern manufacturing plants, producing such goods as foods and beverages, textiles, building materials, and chemicals. Construction is an emerging industry in the country. The construction of new factories, hotels, offices, schools, and roads fall in this category. Much foreign aid has been given to Yemen for industrialization.

Commercial fishing has long been an important industry in southern Yemen and is becoming increasingly important in northern Yemen. The catch consists chiefly of mackerel and tuna.

Except for petroleum and salt, mineral resources are few. Petroleum was discovered in substantial amounts in the Marib area in 1984; other discoveries followed. Petroleum is an important export. Yemen ’s economy is dependent on Aden ’s oil refinery and port. Oil chiefly from the Gulf countries is processed in the refinery. The port is used for refueling, repairs, and transferring cargoes by ships of various nations. Salt, mined in large quantities near Salif, is also an important export.

Camels, donkeys, and horses are chiefly used by people in Yemen. There are no railways. Paved roads connect most major cities. Trucks and motor vehicles are important modes of transportation. Aden and Hodeida are the chief ports. Sana, Taizz, Hodeida, and Aden have international airports.