Overview

The Republic of Yemen is an Arab country occupying the southwestern to southern end of the Arabian Peninsula. It is bordered by Saudi Arabia to the north, the Red Sea to the west, the Gulf of Aden and Arabian Sea to the south and Oman to the north-east. Of Yemen's 200 islands, the largest is Socotra, about 354km to the south of mainland Yemen.

Yemen is divided into 20 governorates, the largest of which is Hadramawt. Yemen's population of approximately 35.2 million (2024) has more than doubled since 1975, making Yemen the second most populous country on the Arabian Peninsula.

Yemeni unification took place on 22 May 1990, when the Yemen Arab Republic in the north was united with People's Democratic Republic of Yemen in the south, forming the Republic of Yemen. A secessionist movement in the former South Yemen led to a brief civil war in 1994. Ansar Allah, commonly referred to as the Houthis, are an armed political Shia Muslim group which emerged in the north of Yemen in the 1990s began a rebellion against the Yemeni government in the early 2000s.

By 2011, as Yemen continued to suffer from religious violence and Al-Qaeda inspired terrorism, the President stepped down. Following a UN-backed transition negotiated by the Gulf Cooperation Council, President Abd-Rabbu Mansour Hadi took power in 2012. In September 2014, the Houthis took over the Yemeni capital Sana'a. The political, security and humanitarian situation in Yemen deteriorated rapidly in 2015, descending into civil war. A Saudi-led military coalition, whose members included Egypt, Bahrain, and the UAE, intervened to support President Hadi. By 2016, the Houthis had seized control over much of the north of Yemen. The country remains divided in a state of civil war.

UN Refugee Agency (UNHCR) has declared Yemen as one of the worst humanitarian crises in the world, with 18.2 million Yemenis in need of assistance in 2024. Prior to the escalation of the conflict, over 90% of Yemen's staple foods were imported, but the closure of ports and other restrictions has further decreased availability.

Political overview

The first nationwide ceasefire in the conflict was brokered between the Houthis and the Saudi-led coalition UN in April 2022. This ceasefire was led by the United Nations Secretary-General's Special Envoy for Yemen, Swedish diplomat Hans Grundberg. The truce was renewed twice but expired in October 2022. Since the expiry of the ceasefire, there has been no return to the level of internal violence that occurred beforehand.

On 7 April 2022 it was announced a new President, Dr. Rasheed al-Alimi, would lead the 'recognised' Yemen Government. The new government was called the Presidential Leadership Council (PLC) and consisted of eight members, selected by the GCC. The PLC represents Yemen in international fora, including at the United Nations, the Arab League and the Organization of Islamic Cooperation.

Yemen is now divided between the Houthis in the north and the PLC, which controls much of the south and east of the country, operating from the city of Aden.

In December 2023, Hans Grundberg announced that all parties to the conflict in Yemen had agreed to a set of measures to implement a nationwide ceasefire, improve living conditions in Yemen, and engage in preparations for the resumption of an inclusive political process under UN auspices (UN Roadmap).

In November 2023, in response to the Israel – Gaza conflict and in support of Hamas, the Houthis began to launch attacks on ships in the Red Sea and Bab al-Mandeb Strait. While attacks were aimed at vessels that the Houthis claimed were linked to Israel, these have been indiscriminate in nature and have resulted in deaths of mariners and destruction of vessels, causing shipping to be diverted away from the Red Sea, impacting world trade and freedom of navigation.

Since January 2024, Australia has provided support for the United States and United Kingdom in defensive strikes against Houthi targets.

In May 2024, the Australian Government listed the Houthis, also known as Ansar Allah, as a terrorist organisation under the Criminal Code Act 1995 (the Criminal Code). Further information on terrorist organisation offences is available from the Attorney-General’s Department website.

Bilateral relations

Australia has a limited but friendly bilateral relationship with Yemen including collaboration in international fora, such as IORA. The Australian Embassy in Riyadh is accredited to Yemen.

The Australian Government committed $9 million in humanitarian assistance to Yemen in 2024-25, bringing the total to over $72 million since 2017. Through UN agencies, including the World Food Programme and UN Children's Fund, this assistance has delivered food, water, sanitation, health care and protection to people affected by violence. Australia has also provided assistance through our global humanitarian partnerships and contribution to the UN Central Emergency Response Fund.

In 2023, Australia contributed two personnel through the DFAT-funded Australia Assists program implemented by RedR Australia: a secondment to the UN Special Envoy's Principal Military Advisor team, and a Water Programme Specialist working in the UNESCO regional hub in Doha on water security challenges in Yemen.

Economic overview

Yemen is the poorest Gulf economy but grew in the mid-1990s when oil production began. Yemen is a small oil producer and does not belong to the Organization of the Petroleum Exporting Countries (OPEC). Unlike many regional oil producers, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government. Income from oil production has historically constituted around 70-75% of government revenue and approximately 90% of exports. In October 2022, the Yemeni government was forced to stop oil exports due to Houthi drone attacks on ports and export facilities. From 2015 to 2022, the country experienced a staggering 52 per cent contraction in real GDP per capita.

Trade and investment

The security environment in Yemen has greatly hampered the development of bilateral commercial ties. Two-way goods and services trade with Yemen remains limited, valued at $649 million in 2023. Australian wheat exports made up 98% of all two-way goods and services trade in FY 2022-23.