New Houthi Levies Paralyze Cement Market and Hit Construction Projects
Yemen Monitor / Sana’a / Exclusive:
In a sudden move that has sparked widespread resentment, the Houthi-affiliated Customs Authority in Sana’a announced a 50% increase in customs duties on local cement. The hike, introduced under the pretext of “supporting the Yemen General Corporation for Cement,” was implemented without clear legal or economic justification and without prior consultation with cement agents, distributors, or relevant stakeholders. This has had an immediate impact on the construction and development sector and overall market activity.
In an official memorandum dated January 17, local cement agents and distributors declared their categorical rejection of this unjustified increase. They warned of its dangerous repercussions on the prices of building materials and the rising cost of construction, which leads to the disruption of reconstruction, infrastructure, and service projects, effectively paralyzing the construction market.
The statement emphasized that supporting any national institution should not come at the expense of the citizen or a vital sector that directly affects people’s lives. It stressed that any financial or customs decisions must be based on clear legal foundations, consider the public interest, and be issued with a sense of national responsibility—rather than being imposed suddenly in a way that confuses the market and harms the economy.
Cement agents and distributors demanded an immediate halt to this increase, an urgent review of the decision, and the opening of a serious and responsible dialogue with all concerned parties to reach fair and balanced solutions that maintain price stability and encourage construction and development.
This escalation comes as Houthi authorities have been detaining all cement trucks at the newly established Dhamar customs checkpoint for over a week, exacerbating the crisis. Furthermore, all concrete companies have been closed since last Thursday, and work has stopped on most buildings and projects due to the cement shortage. This has resulted in thousands of daily-wage laborers being unable to work, depriving them of their primary source of income.
For their part, economic and banking experts warned that the decisions to raise cement customs duties by 50%, alongside the detention of imported timber trucks, represent a direct threat to the construction sector and increase the living burden on citizens amidst difficult economic conditions.
Experts pointed out that such sudden measures reflect a lack of realistic economic planning, threaten market stability, and expose vital infrastructure projects to suspension. They warned that the continuation of ill-conceived customs policies will lead to record price increases, hinder reconstruction efforts, and increase pressure on citizens at a time when they are in desperate need of relief and support.
