Publications

Policy Briefs

Made In Yemen: A Strategy For Industrial Recovery And Economic Growth

Made In Yemen: A Strategy For Industrial Recovery And Economic Growth

Executive Summary

Historically, Yemen’s industrial sector has been characterized by small-scale, private initiatives, with 78% of establishments employing fewer than four workers and dominated by food, metal, and textile industries. Yemeni industry’s reliance on imported inputs and weak infrastructure left it vulnerable even before the 2015 escalation of war. Post-conflict damage has been extensive, with losses exceeding $35 billion, industrial output collapsing, and over half the workforce displaced. Legal frameworks exist but lack consistent enforcement. Gender disparities remain stark, with women accounting for just 1–6% of industrial employment. Environmental degradation further complicates recovery, driven by outdated laws and limited compliance capacity.

Despite this, some local industries have demonstrated resilience, particularly in informal light manufacturing. Drawing from regional and international models of industrialization, this RYE Policy Brief identifies viable paths for industrial renewal anchored in local resources, community participation, and adaptive governance.

Key Recommendations:
  • National Industrial Strategy:

Develop a national industrial strategy in partnership with the private sector, including identification of key sectors, support measures, and coordination mechanisms.

  • Regulatory Reform:

Simplify business registration, update laws, and establish industrial arbitration councils.

  • Women’s Inclusion:

Expand training, develop women-friendly zones, and launch targeted financing for female entrepreneurs.

  • Innovation & R&D:

Fund industrial research labs and foster private-sector innovation partnerships.

  • Infrastructure Development:

Rehabilitate industrial zones with solar energy, logistics hubs, and streamlined port access.

  • Access to Finance:

Create an Industrial Finance Fund and expand concessional credit for SMEs.

  • Environmental Sustainability:

Enforce pollution controls, incentivize clean tech adoption, and integrate safeguards into industrial planning.

Read also in Policy Briefs

Supporting the Construction Contracting Sector in Yemen for Stabilization and…

January 3, 2025 Policy Briefs
The construction sector in Yemen, despite being significantly impacted by political and economic crises and the effects of war, continues to be a crucial sector for the country’s recovery and reconstruction efforts. Within the wider context of the construction sector in Yemen, this brief presents a comprehensive analysis of the contracting sector, which covers the physical work carried out…

Transitional Government in Post-Conflict Yemen

August 5, 2019 Policy Briefs
This policy brief offers recommendations to maximize the effectiveness of governance in post-conflict Yemen – whatever the composition or structure of the government. It presents three case studies on government models previously introduced in Yemen, Tunisia and Lebanon after periods of instability. These case studies offer useful lessons on the challenges, risks and opportunities of…

Unlocking Innovation In Yemen: A Policy Blueprint For Supporting High-growth…

July 28, 2025 Policy Briefs
This policy brief explores the potential role of innovation-driven enterprises (IDEs) — high-growth ventures built around scalable models and technology — in contributing to economic resilience in Yemen. While IDEs are not yet prominent in the national economy, their emergence in other fragile contexts, including Somalia, Gaza, Rwanda, and Iraq, suggests they could present a viable…