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An economic report on the war economy and new millionaires in Yemen 2021


An economic report has disclosed a new emerging class of millionaires as a result of the war in Yemen, which has been going on for 8 years.

 A recent report issued by the Studies & Economic Media Center has addressed the growing phenomenon of the so-called "new millionaires" who have built their fortunes from their military and political influence in Yemen.

The annual economic report, entitled "Yemeni Economy of 2021: The War Economy and the New Millionaires," describes this phenomenon as a direct result of the catastrophic war that made Yemen the most humanly suffering country globally. The war has turned into an important means to enrich a new class of political and economic elite, whose interests intertwine in a way that ensures that the war continues and even intensifies further.

The report has indicated to the great fortune of the influential networks close to the Houthi group through a series of commercial and investment activities backed by the influence and close relationships with the Houthi leaders playing a role in fueling the war.

It also indicated to how another parasitic class emerged in the areas under the control of the internationally recognized government, benefiting from the multiplicity of authorities and powerful forces and unregulated regional support. The sale and smuggling of arms, levies, and awarding contracts were also one of the main aspects of this wealth associated with the war and benefiting from it.

The report singled out an important space for monetary policy and the repercussions of the Yemeni currency inflation, which set a record in its modern history. The rate of one dollar exceeded 1650 Yemeni riyals and continued to fluctuate up and down during 2021 in one of the prominent signs of the fragile economic situation.

The report also included an assessment of the performance of the Central Bank in Aden through its ability to control and supervise the banking market, and its success in establishing the remittance network, transferring bank centers to Aden and stopping the violating exchange companies. Moreover, the assessment was made based on the rate of inflation and its effects on people’s lives due to high prices of basic foodstuffs.

The report added that prices have risen to record levels, reaching more than 100 percent in some months. The prices are still rising for many reasons, the most important of which are currency fluctuations and international variables such as the repercussions of the Covid-19 pandemic, the Russian-Ukrainian war and others.

The report also talked about the violations against the Yemeni private sector, which suffered more violations and illegal practices, whether those related to direct attacks or practices related to illegal levies and the imposed fees and multiple royalties. In 2021, the Monitoring Unit at the Studies & Economic Media Center has monitored more than 48 collective violations (group violations against a large number of commercial firms) and more than 50 individual violations (violations against a specific firm).

The report warned of the risks of the continued involvement of the private sector in the political conflict and the eradicating the traditional private sector and establishing another private economy that follows the influential people in each of the regions. The report has provided a statement of the humanitarian funds provided to Yemen during the past period and on the roles of the main players in the relief and humanitarian process in Yemen.

It is noteworthy that the Studies & Economic Media Center is a non-profit civil society organization working for rehabilitation and awareness of economic issues, promoting transparency and citizen participation in decision-making, creating professional media, empowering youth and women economically and strengthening their role in building peace.

The link of the report Here


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