Yemen Socio-Economic Update, Issue 16 - July 2016 [EN/AR]



As we are approaching the Eid al-Fitr occasion, I would like to extend my warmest wishes and congratulations to all people of the Arab and Islamic nations. May this occasion brings peace, security and stability throughout Yemen.

This edition highlights the donor support, which is an important source of foreign exchange in Yemen. About $7.1 billion of donor support has been disbursed during the transitional period 2012-2014, or an average of $2.37 billion per year. This represents 54.6% of government share in oil and gas exports during the same period, thereby contributing significantly to the stability of balances and macroeconomic indicators, including the containment of public budget deficit, stability of the dollar exchange rate and accumulation of foreign exchange reserves.

In light of the recent political and security developments in Yemen, most of donors have suspended their support to Yemen, except the humanitarian aid that has increased but remains too limited to cover a minimum of growing humanitarian needs. For example, donor support covered only 55% of the funding requirements of the Humanitarian Response Plan 2015. UNICEF has a 66% total funding gap in 2016.

Suspension of regional and international donor support has undoubtedly contributed to worsening the economic and social crises. Therefore, we call on our donors to resume their support to Yemen, particularly financing the cash assistance provided to the poor beneficiaries of the Social Welfare Fund, as well as financing the basic services projects that are necessary for all Yemenis.

Dr. Mohammed Al-Maitami
Minister of Planning and International Cooperation


  • Total donor pledges amounted to $10.9 billion during September 2012-December 2014, in the form of grants and loans 75% and 25% respectively.

  • $7.1 billion of the total donor support has been disbursed to Yemen, including 56.3% in the form of oil products to support the public budget and a deposit placed at the Central Bank of Yemen to protect the exchange rate stability during 2012- 2014.

  • In 2015, the World Bank suspended its support to Yemen and most donors followed suit, except the Arab Fund for Economic and Social Development, the Islamic Development Bank and humanitarian organizations that continued to support Yemen.

  • Disbursement of external grants and loans dropped from $2.185 billion in 2014 to $109 million in 2015, or by about 95.0%. The donor support suspension has included even basic social projects such as the basic education, maternal and Newborn health and social protection. This has reflected negatively on the various population groups.

  • Humanitarian organizations are facing a large financing gap. For example, as of June 24, 2016, only 22.4% of the necessary funding requirements of 2016 has been provided by donors for the Humanitarian Response Plan 2016. The financing gap of the UNICEF’s activities amount to $119.3 million in 2016 (66% of total funding requirements).

  • Suspension of donor support has contributed to disrupting the investment programs and worsening the public budget deficit and deterioration of the national currency value, thereby resulting in higher inflation and poverty rates.