Forgot Password/Username?
Jan - 18 - 2026 Download The Version
Yemen witnessed turbulent developments during December 2025, beginning with the expansion of forces affiliated with the Southern Transitional Council (STC), which advocates secession, into the governorates of Hadramout and Al-Mahra, and their complete takeover of the eastern governorates, including the oil fields of Al-Masila in Hadramout. These developments led to the forced departure of the Chairman of the Presidential Leadership Council, the Prime Minister, and the majority of government ministers from Aden, and the onset of a state of security and military unrest. This situation culminated in the announcement by the newly appointed Governor of Hadramout, Salem Al-Khanbshi, of the launch of a military operation supported by the Saudi Coalition to restore control over the Hadramout and enable “Dera’ Al-Watan” forces—Saudi-backed forces—to extend their influence across all eastern governorates, alongside the Hadrami Elite Forces in the Second Military Region. The operation then moved toward Aden and Lahj to stabilize the situation in coordination with the Southern Giants Brigades. These military developments on the ground followed the announcement by the Chairman of the Presidential Leadership Council, Dr. Rashad Al-Alimi, from the Saudi capital Riyadh, of a 30-day state of emergency, the expulsion of the United Arab Emirates from Yemen, and the termination of the joint defense agreement between the two countries. Saudi airstrikes also targeted two weapons-laden ships docked at Mukalla Port, which had arrived from the United Arab Emirates and were intended to support its ally, the Southern Transitional Council. This escalation reflected an intensifying conflict between the two allies, the Saudi Arabia and the United Arab Emirates, after ten years of joint coordination, role-sharing, and management of interests and influence in Yemeni territory. Despite these significant military, security, and political shifts, economic conditions witnessed a degree of relative stability. The national currency, the Yemeni Rial, maintained the official exchange rate set by the Aden Central Bank at approximately 1,610 Rials per US dollar. The flow of goods through Yemeni ports also continued, despite the enforcement of an air and maritime blockade, as Saudi coalition forces regained control over Yemeni airspace and ports. The stability of the Yemeni currency is attributed to effective measures and strict oversight exercised by the Central Bank of Yemen in Aden over the exchange market and currency trading, as well as the continued work of the Import Financing Committee amid the heated security and military events. This is in addition to the swift resolution of military developments without significant material or human losses, whether during the rapid takeover of the eastern governorates (Hadramout and Al-Mahra) by STC forces, or the equally swift counter-operation to reclaim them, which lasted no more than approximately one day.
Yemen witnessed turbulent developments during December 2025, beginning with the expansion of forces affiliated with the Southern Transitional Council (STC), which advocates secession, into the governorates of Hadramout and Al-Mahra, and their complete takeover of the eastern governorates, including the oil fields of Al-Masila in Hadramout. These developments led to the forced departure of the Chairman of the Presidential Leadership Council, the Prime Minister, and the majority of government ministers from Aden, and the onset of a state of security and military unrest. This situation culminated in the announcement by the newly appointed Governor of Hadramout, Salem Al-Khanbshi, of the launch of a military operation supported by the Saudi Coalition to restore control over the Hadramout and enable “Dera’ Al-Watan” forces—Saudi-backed forces—to extend their influence across all eastern governorates, alongside the Hadrami Elite Forces in the Second Military Region. The operation then moved toward Aden and Lahj to stabilize the situation in coordination with the Southern Giants Brigades.
These military developments on the ground followed the announcement by the Chairman of the Presidential Leadership Council, Dr. Rashad Al-Alimi, from the Saudi capital Riyadh, of a 30-day state of emergency, the expulsion of the United Arab Emirates from Yemen, and the termination of the joint defense agreement between the two countries. Saudi airstrikes also targeted two weapons-laden ships docked at Mukalla Port, which had arrived from the United Arab Emirates and were intended to support its ally, the Southern Transitional Council. This escalation reflected an intensifying conflict between the two allies, the Saudi Arabia and the United Arab Emirates, after ten years of joint coordination, role-sharing, and management of interests and influence in Yemeni territory.
Despite these significant military, security, and political shifts, economic conditions witnessed a degree of relative stability. The national currency, the Yemeni Rial, maintained the official exchange rate set by the Aden Central Bank at approximately 1,610 Rials per US dollar. The flow of goods through Yemeni ports also continued, despite the enforcement of an air and maritime blockade, as Saudi coalition forces regained control over Yemeni airspace and ports.
The stability of the Yemeni currency is attributed to effective measures and strict oversight exercised by the Central Bank of Yemen in Aden over the exchange market and currency trading, as well as the continued work of the Import Financing Committee amid the heated security and military events. This is in addition to the swift resolution of military developments without significant material or human losses, whether during the rapid takeover of the eastern governorates (Hadramout and Al-Mahra) by STC forces, or the equally swift counter-operation to reclaim them, which lasted no more than approximately one day.