Yemen Faces Continued Economic Challenges While Oman Advances Green Energy and Tourism Initiatives

Yemen's economy remains under severe strain in 2025 as the nation grapples with prolonged conflict, while neighboring Oman demonstrates how strategic planning and consistent reform can drive economic transformation. The contrasting trajectories highlight the importance of stability, governance, and long-term vision in economic development.

Since the war began in 2015, Yemen's real GDP per capita has plummeted by fifty-eight percent, pushing most of the population into poverty and severely eroding human capital. The country has split into two distinct economic zones, each with its own institutions and competing monetary authorities, leading to widening disparities and complicating economic management.

Despite relative political stability following the UN-sponsored truce in 2022, economic contraction continued in 2023 and 2024. The economic outlook for 2025 remains bleak, with ongoing blockades on oil exports, coupled with the absence of clear paths to lasting peace, straining public finances and external accounts in areas controlled by the Internationally Recognized Government.

Inflation is projected to remain elevated, driven by further currency depreciation in Aden. In areas controlled by the Houthi movement, acute liquidity shortages are expected to continue, with restrictions on cash withdrawals and limited access to funds strangling commercial activity and deepening humanitarian needs.

The International Finance Corporation focuses on strategic sectors in Yemen including manufacturing, agribusiness, energy, health, and finance. New projects are being developed to enhance food security, expand access to essential services, create jobs, and strengthen the private sector's role in driving recovery and long-term development.

Since 2021, IFC has invested fifty-five million dollars and mobilized twenty million dollars with an additional sixty million dollars committed for Hayel Saeed Anam Group, one of the leading conglomerates in food production. The partnership with FMO, the Dutch entrepreneurial development bank, enabled the organization to enter the Yemeni market for the first time.

In 2025, IFC invested eight million dollars in Islamic financing to Al-Mawarid International Company for Educational and Health Services, a leading provider of education and healthcare operating under the University of Science and Technology brand. The company runs four campuses in Aden, serving thousands of students and patients.

IFC is supporting efforts to address severe electricity shortages, a top priority in Yemen, by helping advance renewable energy solutions led by the private sector and mobilizing private investment with particular focus on domestic players and the Yemeni diaspora. These efforts aim to position the private sector as a key engine of growth in critical sectors.

Yemen and Iraq led a group of conflict-affected countries at COP29 climate talks, pushing for doubled financial aid to more than twenty billion dollars annually to combat natural disaster and security crises they face. States mired in conflict struggle to access private investment because they are seen as too risky, making UN funds critical for populations displaced by war and weather.

The COP29 Azerbaijan presidency launched a new Network of Climate-vulnerable Countries, including Iraq, Yemen, Burundi, Chad, Sierra Leone, Somalia, and Timor-Leste. The network aims to advocate as a group with climate finance institutions, build capacity in member states to absorb more finance, and create country platforms enabling easier project identification for investors.

In stark contrast, Oman has demonstrated remarkable progress through consistent policy implementation and strategic vision. The Times of Oman Business Leadership Summit & Awards 2025 took place in December at the St. Regis Al Mouj Muscat Resort, bringing together over two hundred senior government officials, top business owners, industry experts, and leading executives.

The summit served as a powerful platform for thought leadership, collaboration, and recognition under the theme "Leading the Future of Business." Sessions explored pivotal sectors including banking, investments, oil and gas, logistics, technology, manufacturing, real estate, and construction, addressing pressing global challenges and highlighting leadership resilience requirements.

Lifetime Achievement Awards were presented to Mustafa Ahmed Salman, Founder and Chairman of United Securities, and Sunder George, recognizing their outstanding contributions to Oman's business landscape. Hussein Al-Lawati, CEO of Development Bank, was named Business Leader of the Year in Banking, while Tariq Al Farsi, CEO of National Finance, received the title of Business Leader of the Year in Finance.

Muriya Tourism announced a key leadership transition with the appointment of Ashraf Nessim as Chief Executive Officer effective December 1, 2025. Nessim previously served as Chief Financial Officer of Orascom Development over the past ten years, holding several senior executive positions within the group and Egyptian subsidiary.

Nessim's leadership will focus on reinforcing Muriya's long-term vision of sustainable development, continuing to offer customer-centric vibrant destinations, and expanding tourism and real estate offerings in contribution to Oman Vision 2040. The appointment marks a strategic evolution for the leading integrated tourism and real estate developer.

The Bahrain Association of Banks announced the appointment of Zeeba Askar as its new Chief Executive Officer, bringing extensive leadership experience from her role as Chief Investment and Sustainability Officer at Infracorp Bahrain. Her appointment reflects the board's confidence in her extensive experience in the financial and banking sector.

Yusuf Bin Ahmed Kanoo Group, one of the largest independent family-owned multinational businesses in the Middle East, appointed Mohamed Abdulelah Al Kooheji as its new Group Chief Executive Officer. Al Kooheji brings over twenty-one years of experience in investment, business development, property management, and strategic planning.

The Central Bank of Bahrain announced new executive management appointments supporting the Board of Directors' decision to adopt a new organizational structure. Governor Khalid Humaidan emphasized that these appointments will contribute to achieving CBB's objectives of developing capable leadership competencies vital for development and growth of the financial services sector.

Kuwait Finance House Bahrain announced senior executive promotions for key positions, with Managing Director and CEO Abdulhakeem Alkhayyat highlighting that the appointments demonstrate commitment to fostering outstanding Bahraini talent while cultivating an environment of endless development and advancement.

The contrasting situations in Yemen and Oman underscore how governance, stability, and strategic planning fundamentally shape economic outcomes. While Yemen struggles with basic service delivery and economic survival, Oman is executing sophisticated diversification strategies, attracting international investment, and building foundations for sustainable prosperity.

International observers note that Yemen's reconstruction will require not just financial resources but comprehensive institutional rebuilding, reconciliation processes, and governance reforms. The experience of neighboring countries like Oman demonstrates that consistent policy implementation, fiscal discipline, and strategic vision can overcome challenges and deliver broad-based prosperity.