In-depth country-focused analysis on Yemen's economic, political and operational risk environment, complemented by detailed sector insight

Our comprehensive assessment of Yemen's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Yemen, as well as the latest industry developments that could impact Yemen's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Yemen before your competitors.

Country Risk

Yemen Country Risk

BMI View:

Core Views

  • We expect the formation of a fragile federalised state in Yemen, and the political situation will remain highly unstable over the coming decade. While not our core view, we flag significant risks of a return to civil war and a de-facto break-up of the state. 

  • The economic outlook is uninspiring, with growth remaining sluggish over the 2014-18 period. Our core scenario sees business activity continuing to be negatively impacted by civil unrest, while persistent attacks on the country's hydrocarbon infrastructure will weigh on exports.

Key Risks To Outlook

  • Any further disruption by southern-based Islamists to oil or gas exports would weigh heavily on the external position. Yemen's current account dynamics remain precarious; with minimal inflows of capital on the...

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Yemen Industry Coverage (2)

Defence & Security

Yemen Defence & Security

BMI View:

BMI is anticipating further turbulence in Yemen over the course of 2015, as President Hadi has faced significant challenges to his authority and as the government finds itself in a crisis following the Houthi's capture of the capital Sana'a in 2014. We think Al Qaeda on the Arabian Peninsula may potentially exploit the crisis to seek out support in Sunni areas and note that AQAP has increased its attacks against the Yemeni military and international interests in the country .

Since September 2014, when the Houthi rebels took control of government institutions in Yemen, the political and security situation has deteriorated. We are not expecting improvement, but rather a worsening of the security climate. We do not see the Houthis - a highly trained and well armed militia - returning to their bases in the north of the country. We note that the...

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Yemen Infrastructure

BMI View:

BMI View: Yemen's construction sector continues to post only modest growth despite significant upside potential . Security risks , combined with political uncertainty, have prevented much needed investment. We predict real industry growth of 3.8% in 2014 and an average of 2.1% over the forecast period until 2023 .

Key developments in the sector:

  • Indian power equipment manufacturer Bharat Heavy Electricals (BHEL) signed a memorandum of understanding (MoU) with the Ministry of Electricity and Energy of Yemen for setting up solar photovoltaic (PV) based power plants across the country. The MoU was signed by BHEL Chairman and...

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