Yemen's microfinance sector is a story of both remarkable progress and persistent challenges. Introduced in 1997 with the backing of international donors, microfinancing emerged as a vital tool in the fight against poverty and unemployment. The Social Fund for Development (SFD) acted as a driving force, establishing the Small and Microenterprise Development Unit (SMED) to head this…

Since April 2022, the war in Yemen has mutated from a volatile, high-casualty conflict to a protracted stalemate with stable frontlines. The contest is now over the economy, as the Houthi group (Ansar Allah) leverages negotiations and its military power to put fiscal pressure on the internationally recognized government, stoking discontent as public utilities break down and the currency…

For decades prior to the ongoing conflict, Yemen had been vulnerable to recurring budget deficits due to a lack of meaningful fiscal reform, high recurrent expenditures – mainly public sector salaries and fuel subsidies – and an overdependence on oil revenues. Within a year of becoming a unified republic in 1990, the country had already defaulted on its debt obligations to foreign…