Yemen's Trade Outlook 2025: Insights for West Asia

Yemen is a country located in the southwest of the Arabian Peninsula. The capital of Yemen is Sana`a. The currency of this country is the Yemeni Rial and is known by the code YER. The official language of Yemen is Arabic and most of its people speak Arabic. Regarding religion, the majority of Yemeni people are Muslim and beliefs are divided between Shia and Sunni. Yemen is a country with an agricultural economy based on agriculture, processing industries, oil and natural gas, various industries and influential services. The products that Yemeni merchants import and export to other countries include food products such as coffee, honey, spices and fruits, textile and clothing products, wooden products and handicrafts, food products, chemicals and other products. Also, the export of oil and gas plays an important role in Yemen`s economy. You can get more information about the ways to contact Yemeni businessmen through the Yemeni embassy or consulate in your country. Also, visiting sites related to Yemeni companies and commercial organizations, consulting with business and economic experts or using communication methods such as phone calls and emails can also help you get more information.

Yemen’s trade dynamics in recent years reflect a challenging but evolving landscape, particularly for businesses aiming to engage with Yemeni exporters and importers in West Asia. According to WTO data, Yemen’s merchandise import value index fell from 110.6 in 2021 to 95.7 in 2023, significantly underperforming the global average of 101.1 in 2023. This decline signals reduced purchasing power and import demand, likely driven by economic instability and currency devaluation. However, the import volume index for 2023 (98.8) shows a modest recovery compared to 2022 (89.2), suggesting a gradual stabilization in trade flows. Global businesses should note this as a potential entry point for supplying essential goods to Yemen, particularly in sectors with consistent demand such as food, pharmaceuticals, and construction materials.

On the export side, Yemen has faced steep challenges. The merchandise export value index plummeted from 163.9 in 2021 to just 36.3 in 2023, far below the global average of 102.3. This sharp decline reflects disruptions in Yemen’s key export sectors, including oil and agricultural products. The export unit value index also dropped to 91.0 in 2023, compared to the global average of 95.0, indicating reduced competitiveness in international markets. However, Yemeni exporters active in West Asia may find opportunities in diversifying their product mix and targeting niche markets where local goods, such as coffee and honey, are highly valued.

Comparatively, Yemen’s economic structure is heavily reliant on agriculture, which accounted for an estimated 15.2% of GDP in 2023, higher than the global average of 11.4%. This over-reliance on agriculture, combined with underperforming industrial and service sectors, underscores the need for investment in industrial development and trade facilitation. For international investors, opportunities exist in sectors like renewable energy, logistics, and agro-processing, which can address Yemen’s structural gaps while offering long-term growth potential.

Despite these challenges, Yemen’s strategic location near key shipping routes in the Middle East presents a unique opportunity for businesses seeking to strengthen regional supply chain solutions. Platforms like Aritral.com can play a pivotal role in connecting Yemeni traders with global buyers, offering tools such as AI-powered international marketing and verified exporter profiles. By creating a business profile on Aritral.com, companies can gain visibility in West Asia’s competitive market and tap into Yemen’s resilient entrepreneurial base, which remains active despite economic hurdles.