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Analysis

The Geoeconomics of Reconstruction in Yemen

The conflict in Yemen has exacted a disastrous toll on the country. This paper considers the outside forces in the conflict, seeking to elucidate who they are, what the nature is of their involvement, and what their converging and conflicting interests mean for reconstruction.

View of the damaged Mercedes Benz building in Aden, Yemen, Feb. 17 (AP Photo/Nariman El-Mofty)
View of the damaged Mercedes Benz building in Aden, Yemen, Feb. 17 (AP Photo/Nariman El-Mofty)

Recommendations

  • A coordinated and unified GCC response to postconflict reconstruction in Yemen will be essential to meeting the country’s political and economic requirements.
  • Yemen’s long-term economic viability will be greatly enhanced if the GCC extends some of its membership privileges, such as tariff relief for exports from Yemen and labor concessions.
  • Yemen’s political culture of patronage, especially from foreign influence, is likely to persist. To reduce the tendency to play one foreign patron against another, patron-client relationships between foreign states and local governorates and armed groups must be centralized into state agencies or federal units, to bring legitimacy to government, not warlords, militias, or sectarian actors.
  • One effective mechanism to restore legitimacy to local governments and limit discrepancies in regional access to relief, including the disbursement of salaries, is an effort to increase transparency in the amount and distribution of aid funds by region and local governments at the municipal level.
  • A central tenet of any reconstruction program should be setting realistic goals. While the temptation may be to aim for major infrastructure projects like ports, airports, and free zones, small-scale projects like sanitation rehabilitation, localized solar power grids, infrastructure or public building repair, and small roads projects of the kind the World Bank is engaged in are far more likely to provide tangible benefits.
  • Local needs assessments should be conducted in conjunction with local communities to ensure maximum possible buy-in.

Read full paper

The views represented herein are the author's or speaker's own and do not necessarily reflect the views of AGSI, its staff, or its board of directors.

Kristin Smith Diwan

Senior Resident Scholar, AGSI

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Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
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Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

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Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
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Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
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Senior Resident Scholar, AGSI

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U.S. President Donald J. Trump exits Air Force One upon arriving at Joint Base Andrews in Maryland, May 4. (REUTERS/Leah Millis)

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Palestinians walk in the destruction caused by the Israeli air and ground offensive in Jabaliya, Gaza Strip, February 11. (AP Photo/Jehad Alshrafi)

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President Donald J. Trump holds the hand of his wife Melania Trump, right, as Vice President JD Vance looks on after taking the oath of office during the 60th Presidential Inauguration in Washington, DC, January 20. (AP Photo/Morry Gash, Pool)

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Smoke rises in North Gaza, amid the ongoing conflict between Israel and Hamas, as seen from Israel, January 14. (REUTERS/Amir Cohen)
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Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
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Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

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On February 4, AGSIW hosted a discussion on the collapse of the Assad regime and the future of Syria.

Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)

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Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
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Omar Rahman
Omar H. Rahman

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U.S. President Donald J. Trump exits Air Force One upon arriving at Joint Base Andrews in Maryland, May 4. (REUTERS/Leah Millis)

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Palestinians walk in the destruction caused by the Israeli air and ground offensive in Jabaliya, Gaza Strip, February 11. (AP Photo/Jehad Alshrafi)

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President Donald J. Trump holds the hand of his wife Melania Trump, right, as Vice President JD Vance looks on after taking the oath of office during the 60th Presidential Inauguration in Washington, DC, January 20. (AP Photo/Morry Gash, Pool)

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Events

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Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)

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Exploring Oman’s History, Culture, and Cuisine: A Conversation With Chef Dina Macki

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Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

Feb 4, 2025

After Assad: What’s Next for Syria and the Region?

On February 4, AGSIW hosted a discussion on the collapse of the Assad regime and the future of Syria.

Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)

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Outlook 2025: What Will the New Year Bring for the Gulf Region and U.S.-Gulf Relations?

On January 23, AGSIW hosted a discussion on what regional trends they’ll be following most closely as the year unfolds.

Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
View All
Peter Salisbury

Senior Analyst, Yemen, Crisis Group

Analysis

Trump’s Gulf Trip Should Prove a Big Win-Win for All Parties

Gulf Arab states can solidify ties with Washington, while Trump stands to benefit personally and politically.

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15 min read

U.S. President Donald J. Trump exits Air Force One upon arriving at Joint Base Andrews in Maryland, May 4. (REUTERS/Leah Millis)

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The GCC +2 meeting, followed by the Arab League, has to take Trump's dangerously implausible ideas about Gaza seriously, but Israel won't countenance the Arab states’ alternative.

Hussein Ibish

9 min read

Palestinians walk in the destruction caused by the Israeli air and ground offensive in Jabaliya, Gaza Strip, February 11. (AP Photo/Jehad Alshrafi)

Trump’s Inauguration and America’s Nationalist Realignment

Underlying dynamics in U.S. society and the global political economy suggest Trump’s new nationalist coalition may endure with implications for Gulf partners.

President Donald J. Trump holds the hand of his wife Melania Trump, right, as Vice President JD Vance looks on after taking the oath of office during the 60th Presidential Inauguration in Washington, DC, January 20. (AP Photo/Morry Gash, Pool)

Qatar’s Adroit Post-October 7 Diplomacy

Qatar appears to have turned a serious potential liability, its long-standing support for Hamas, into diplomatic advantage.

Hussein Ibish

7 min read

Smoke rises in North Gaza, amid the ongoing conflict between Israel and Hamas, as seen from Israel, January 14. (REUTERS/Amir Cohen)
View All

Events

May 15, 2025

12:30pm - 1:30pm

Will Trump’s Visit Mark a New Chapter in U.S.-Saudi Relations?

On May 15, AGSI will host a discussion on Trump's visit to Saudi Arabia.

Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)

Mar 26, 2025

Exploring Oman’s History, Culture, and Cuisine: A Conversation With Chef Dina Macki

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Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

Feb 4, 2025

After Assad: What’s Next for Syria and the Region?

On February 4, AGSIW hosted a discussion on the collapse of the Assad regime and the future of Syria.

Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)

Jan 23, 2025

Outlook 2025: What Will the New Year Bring for the Gulf Region and U.S.-Gulf Relations?

On January 23, AGSIW hosted a discussion on what regional trends they’ll be following most closely as the year unfolds.

Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
View All
Ambassador Stephen A. Seche

Former Executive Vice President

Analysis

Trump’s Gulf Trip Should Prove a Big Win-Win for All Parties

Gulf Arab states can solidify ties with Washington, while Trump stands to benefit personally and politically.

Hussein Ibish

15 min read

U.S. President Donald J. Trump exits Air Force One upon arriving at Joint Base Andrews in Maryland, May 4. (REUTERS/Leah Millis)

What’s Behind the Arab Alternative to Trump’s Gaza Proposal

The GCC +2 meeting, followed by the Arab League, has to take Trump's dangerously implausible ideas about Gaza seriously, but Israel won't countenance the Arab states’ alternative.

Hussein Ibish

9 min read

Palestinians walk in the destruction caused by the Israeli air and ground offensive in Jabaliya, Gaza Strip, February 11. (AP Photo/Jehad Alshrafi)

Trump’s Inauguration and America’s Nationalist Realignment

Underlying dynamics in U.S. society and the global political economy suggest Trump’s new nationalist coalition may endure with implications for Gulf partners.

President Donald J. Trump holds the hand of his wife Melania Trump, right, as Vice President JD Vance looks on after taking the oath of office during the 60th Presidential Inauguration in Washington, DC, January 20. (AP Photo/Morry Gash, Pool)

Qatar’s Adroit Post-October 7 Diplomacy

Qatar appears to have turned a serious potential liability, its long-standing support for Hamas, into diplomatic advantage.

Hussein Ibish

7 min read

Smoke rises in North Gaza, amid the ongoing conflict between Israel and Hamas, as seen from Israel, January 14. (REUTERS/Amir Cohen)
View All

Events

May 15, 2025

12:30pm - 1:30pm

Will Trump’s Visit Mark a New Chapter in U.S.-Saudi Relations?

On May 15, AGSI will host a discussion on Trump's visit to Saudi Arabia.

Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)

Mar 26, 2025

Exploring Oman’s History, Culture, and Cuisine: A Conversation With Chef Dina Macki

In her latest book, Bahari, meaning “ocean” in Swahili, chef Dina Macki embarks on a culinary exploration of the rich flavors and history of Omani cuisine, a food culture shaped by boundless coastlines and complex maritime history, with origins and influences spanning Pakistan, Iran, India, the Swahili coast, and Portugal.  An Omani Zanzibari chef who...

Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

Feb 4, 2025

After Assad: What’s Next for Syria and the Region?

On February 4, AGSIW hosted a discussion on the collapse of the Assad regime and the future of Syria.

Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)

Jan 23, 2025

Outlook 2025: What Will the New Year Bring for the Gulf Region and U.S.-Gulf Relations?

On January 23, AGSIW hosted a discussion on what regional trends they’ll be following most closely as the year unfolds.

Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
View All
Karen E. Young

Senior Research Scholar, Center on Global Energy Policy, Columbia University’s School of International and Public Affairs

Analysis

Trump’s Gulf Trip Should Prove a Big Win-Win for All Parties

Gulf Arab states can solidify ties with Washington, while Trump stands to benefit personally and politically.

Hussein Ibish

15 min read

U.S. President Donald J. Trump exits Air Force One upon arriving at Joint Base Andrews in Maryland, May 4. (REUTERS/Leah Millis)

What’s Behind the Arab Alternative to Trump’s Gaza Proposal

The GCC +2 meeting, followed by the Arab League, has to take Trump's dangerously implausible ideas about Gaza seriously, but Israel won't countenance the Arab states’ alternative.

Hussein Ibish

9 min read

Palestinians walk in the destruction caused by the Israeli air and ground offensive in Jabaliya, Gaza Strip, February 11. (AP Photo/Jehad Alshrafi)

Trump’s Inauguration and America’s Nationalist Realignment

Underlying dynamics in U.S. society and the global political economy suggest Trump’s new nationalist coalition may endure with implications for Gulf partners.

President Donald J. Trump holds the hand of his wife Melania Trump, right, as Vice President JD Vance looks on after taking the oath of office during the 60th Presidential Inauguration in Washington, DC, January 20. (AP Photo/Morry Gash, Pool)

Qatar’s Adroit Post-October 7 Diplomacy

Qatar appears to have turned a serious potential liability, its long-standing support for Hamas, into diplomatic advantage.

Hussein Ibish

7 min read

Smoke rises in North Gaza, amid the ongoing conflict between Israel and Hamas, as seen from Israel, January 14. (REUTERS/Amir Cohen)
View All

Events

May 15, 2025

12:30pm - 1:30pm

Will Trump’s Visit Mark a New Chapter in U.S.-Saudi Relations?

On May 15, AGSI will host a discussion on Trump's visit to Saudi Arabia.

Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)
Saudi Crown Prince Mohammed bin Salman meets with U.S. President Donald J. Trump at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS)

Mar 26, 2025

Exploring Oman’s History, Culture, and Cuisine: A Conversation With Chef Dina Macki

In her latest book, Bahari, meaning “ocean” in Swahili, chef Dina Macki embarks on a culinary exploration of the rich flavors and history of Omani cuisine, a food culture shaped by boundless coastlines and complex maritime history, with origins and influences spanning Pakistan, Iran, India, the Swahili coast, and Portugal.  An Omani Zanzibari chef who...

Visitors buy frankincense at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. (REUTERS/Rula Rouhana)
Visitors buy frankincense, which is produced by Wadi Dawkah's trees and historically used to power trade routes beyond the Arabian Peninsula, at Al Haffa souq, in Dhofar governorate, Oman, August 5, 2024. Frankincense remains a vital aspect of Omani culture, used in religious rites, incense, and perfumes. REUTERS/Rula Rouhana

Feb 4, 2025

After Assad: What’s Next for Syria and the Region?

On February 4, AGSIW hosted a discussion on the collapse of the Assad regime and the future of Syria.

Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)
Syria's de facto leader Ahmed Al-Sharaa attends a meeting with former rebel faction chiefs in Damascus, Syria, in this handout image released December 24, 2024. (SANA/Handout via REUTERS)

Jan 23, 2025

Outlook 2025: What Will the New Year Bring for the Gulf Region and U.S.-Gulf Relations?

On January 23, AGSIW hosted a discussion on what regional trends they’ll be following most closely as the year unfolds.

Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
Foreign ministers and delegates pose for a family photo after their meeting on Syria, following the recent ousting of President Bashar al-Assad, in Riyadh, Saudi Arabia, January 12. (Saudi Press Agency/Handout via REUTERS)
View All