Red Sea crisis intensifies economic strain on Yemenis ahead of Eid

Yemenis buy sweets at a popular market in Sanaa on June 15, 2024, as Muslims around the world prepare for the holiday of Eid al-Adha. (File/AFP)
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  • Sales have decreased by 80 percent
  • Over 1.2 million civil servants have not received salaries in eight years, and hundreds of thousands have lost their jobs

DUBAI: Yemen, suffering from nearly a decade of civil war, now faces an additional challenge: a crippled economy further strained by the escalating crisis in the Red Sea.

Market vendors in Sanaa’s Old City, the Al-Melh, claim that sales have decreased by 80 percent, according to a report by Chinese news agency .

Shopkeepers attribute this decline to recent increases in sea shipping costs, which have driven up wholesale prices.

This situation reflects the broader economic crisis in Yemen, where rising sea shipping costs have increased prices across the board, making basic Eid essentials unaffordable for many. 

To help ease financial strain, an exhibition was organized in Al-Sabeen Park, where families were able to sell homemade goods. 

Despite these efforts, Yemen’s economic problems persist. According to the UN, the decade-long war has pushed millions into poverty. Over 1.2 million civil servants have not received salaries in eight years, and hundreds of thousands have lost their jobs. The Norwegian Refugee Council reports that four out of five Yemenis face poverty, and over 18 million people urgently need humanitarian aid.