Technical and financial cooperation
Yemen is one of the poorest countries in the Arab region. The Yemeni economy is heavily dependant on oil production and oil exports, but the output of oil is decreasing and is forecast to deplete within the coming decades. The Yemeni economy is furthermore troubled by political turmoil and economical instability, which has led to business closures and job losses. Moreover, Yemen has one of the highest population growth rates in the world, placing pressure on educational and health services, drinking water, and employment opportunities.
Under the current political and economic scenario, diversification of the Yemeni economy becomes even more necessary. Political stability is closely linked to an improvement of the economic situation and increased employment opportunities. Therefore the EU supports projects aiming at developing a competitive, diversified and sustainable economic environment that favours an inclusive and diversified private sector based on small and medium-sized enterprises (SME). The Yemen Economic Support Programme (YESP) focuses on Private Sector Development and in particular on the facilitation of access to finance for SME with a specific focus on women and youth.
Strengthening resilience is at the core of successful humanitarian and development policies. The EU is an active actor in strengthening resilience – especially when it comes to social and economic development and livelihoods in Yemen. With an aim to support the transition to a stable economy, EU intervention promotes agricultural development and food security at both community and institutional level. At community level, by supporting rural growth through a value chain approach. At institutional level, by strengthening relevant institutions linked to food security and improving the collection of data for improved policy making and quick management of potential food security crises.
The EU also provides support to the fisheries sector. With a coastline of around 2,230 km, the sector is a major part of the rural economy. It currently provides livelihoods for thousands of fishermen and food for hundred of thousands of people. It continues to be one of the most promising economic sectors of the Yemeni economy. The Yemen Fisheries Support Programme (YFSP) therefore promotes the sustainable development of coastal communities and supports the private sector in providing opportunities for growth, local jobs and export. The YFSP also supports the collection of data for improved policy making and sustainable management of marine resources.
For more information on related agreements and relevant EU-Yemen cooperation strategies, please see the links below.
DG Relex (EU-Yemen page):
DG Trade (EU-Yemen Trade Data)
Export Helpdesk for Developing Countries