Knowledge Note

Yemen is a country with many traditions, existing for thousands of years. Water and arable land are in short supply, and its economy is dominated by the oil sector (90 percent of merchandise exports and 27 percent of GDP). Its gradual depletion of oil reserves and the decline of oil prices led to a steep decline in oil revenues, causing severe fiscal difficulties.1 Nearly 18 percent of the population subsists on less than US $1.25 per day.