Yemen today is considered one of the countries most severely affected by armed conflicts. The country has suffered from deep internal political problems, as years of war have led to the destruction of infrastructure, the collapse of state institutions, and the spread of poverty, unemployment, and hunger. The Yemeni economy is among the weakest in the Arab region, as a result of prolonged conflict and instability. Traditionally, it has relied on agriculture, fishing, remittances from expatriates, and—prior to the war—oil and gas as the main sources of foreign currency. However, the armed conflict since 2015 has caused the collapse of most productive sectors, repeated disruptions to oil exports, and a sharp decline in the value of the national currency.
Under these tragic conditions facing the Yemeni people, and while many international actors focus on political and military solutions, the most important truth demonstrated by the experiences of countries emerging from internal conflicts is that the economy is the shortest and most sustainable path to peace. The economy is the engine of politics, and future global conflicts will be governed by economic factors.
When people lose their sources of income and are unable to meet their basic needs, they become more vulnerable to engaging in violence, dependency on others, or recruitment by armed groups. In Yemen, millions of young people live without jobs and without economic prospects, making them easy targets for recruitment in exchange for money. Therefore, creating job opportunities and reviving development and production cuts off the path to the war economy and those who benefit from it, and weakens the incentives for the continuation of conflict. This means that peace is not achieved merely through a ceasefire, but through restoring people’s trust in the state and its institutions.
When citizens see that the state is capable of paying salaries, providing electricity and water, supporting the economy and trade, and ensuring security and safety, their sense of belonging and stability increases. A strong economy means a state capable of providing the necessities of life, and a capable state is the foundation of any lasting peace. At that point, local and foreign investments begin to enter Yemen—in ports, energy, agriculture, and telecommunications—creating shared economic interests among different parties. These interests make a return to war costly, as everyone would lose. Thus, the economy becomes a safety net that protects peace.
Yemen is a country with a strong entrepreneurial spirit, particularly in trade and small industries. Supporting small and medium-sized enterprises, facilitating financing, and simplifying procedures can create thousands of jobs in a short period. Behind every successful project stands a stable family, and every stable family is a building block in the construction of peace.
Continued dependence on aid is one of the greatest problems and will not resolve the crisis. Humanitarian assistance is necessary, but if it is not linked to productive programs (such as agriculture, fishing, crafts, mining, solar energy, etc.), it creates long-term dependency rather than self-sufficiency. A productive economy transforms individuals from recipients of aid into active agents shaping their own lives, reinforcing dignity and social stability.
Accordingly, Yemen does not need only a political agreement, but a national economic project that restarts factories, revitalizes ports, revives agriculture, and opens employment opportunities for young people. When a Yemeni citizen finds a job or source of income—even a modest one—that provides at least part of the basic requirements of life instead of a rifle, a stable income instead of aid, and hope instead of despair, peace becomes a natural choice rather than an imposed one. Therefore, investing in the economy is, at its core, an investment in peace.