Yemen Monitor / Newsroom:
The economic expert Wafiq Saleh warned of the repercussions of the recent events in Hadramowt governorate on the future of the Yemeni economy, pointing out that the escalation of the conflict over oil fields and strategic ports poses a direct threat to the stability of the oil sector and increases the state of uncertainty surrounding the national economy.
In his interview with Al Jazeera Net, Saleh said that the acquisition of oil fields such as Al-Masila fields, in addition to control over export ports, undermines aspirations to resume the production and export of crude oil. He explained that this direct conflict fosters an unfavorable environment for foreign and local investment and threatens the continuity of national companies operating in the oil sector, which may lead to a widespread halt in their activities.
The economic expert added that Yemen is heading towards a critical phase of economic decline, with the exacerbation of the resource scarcity crisis and the rising rate of fiscal deficit, especially given the government’s inability to compensate for the halt in oil exports, which represent a major source of income. He pointed out that this reality complicates the government’s ability to meet basic financial obligations, including paying salaries, supporting the local currency, and providing public services to citizens.
Saleh affirmed that resuming production amid the military conflict could lead to the isolation of oil revenues from the central government, which will further exacerbate the financial crises and eliminate any opportunities to restore the stability of the national economy. He stressed the need to resolve disputes and create a suitable environment for investment to ensure the continuation of oil production, which is vital for Yemen.
It is worth noting that the economic expert’s statements reflect growing concern over the dangerous effects of local conflicts on an economy already suffering from multiple challenges.
