Saudi Arabia vs. Yemen

Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines in Mecca and Medina. The king's official title is the Custodian of the Two Holy Mosques. The modern Saudi state was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman Al SAUD (Ibn Saud) after a 30-year campaign to unify most of the Arabian Peninsula. One of his male descendants rules the country today, as required by the country's 1992 Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. The continuing presence of foreign troops on Saudi soil after the liberation of Kuwait became a source of tension between the royal family and the public until all operational US troops left the country in 2003. Major terrorist attacks in May and November 2003 spurred a strong ongoing campaign against domestic terrorism and extremism. US troops returned to the Kingdom in October 2019 after attacks on Saudi oil infrastructure.

From 2005 to 2015, King ABDALLAH bin Abd al-Aziz Al Saud incrementally modernized the Kingdom. Driven by personal ideology and political pragmatism, he introduced a series of social and economic initiatives, including expanding employment and social opportunities for women, attracting foreign investment, increasing the role of the private sector in the economy, and discouraging businesses from hiring foreign workers. These reforms have accelerated under King SALMAN bin Abd al-Aziz, who ascended to the throne in 2015, and has since lifted the Kingdom's ban on women driving and allowed cinemas to operate for the first time in decades. Saudi Arabia saw some protests during the 2011 Arab Spring but not the level of bloodshed seen in protests elsewhere in the region. Shia Muslims in the Eastern Province protested primarily against the detention of political prisoners, endemic discrimination, and Bahraini and Saudi Government actions in Bahrain. Riyadh took a cautious but firm approach by arresting some protesters but releasing most of them quickly and by using its state-sponsored clerics to counter political and Islamist activism.

The government held its first-ever elections in 2005 and 2011, when Saudis went to the polls to elect municipal councilors. In December 2015, women were allowed to vote and stand as candidates for the first time in municipal council elections, with 19 women winning seats. After King SALMAN ascended to the throne in 2015, he placed the first next-generation prince, MUHAMMAD BIN NAYIF bin Abd al-Aziz Al Saud, in the line of succession as Crown Prince. He designated his son, MUHAMMAD BIN SALMAN bin Abd al-Aziz Al Saud, as the Deputy Crown Prince. In March 2015, Saudi Arabia led a coalition of 10 countries in a military campaign to restore the legitimate government of Yemen, which had been ousted by Huthi forces allied with former president ALI ABDULLAH al-Salih. The war in Yemen has drawn international criticism for civilian casualties and its effect on the country's dire humanitarian situation. In December 2015, then Deputy Crown Prince MUHAMMAD BIN SALMAN announced Saudi Arabia would lead a 34-nation Islamic Coalition to fight terrorism (it has since grown to 41 nations). In May 2017, Saudi Arabia inaugurated the Global Center for Combatting Extremist Ideology (also known as "Etidal") as part of its ongoing efforts to counter violent extremism. In June 2017, King SALMAN elevated MUHAMMAD BIN SALMAN to Crown Prince.

The country remains a leading producer of oil and natural gas and holds about 16% of the world's proven oil reserves as of 2015. The government continues to pursue economic reform and diversification, particularly since Saudi Arabia's accession to the WTO in 2005, and promotes foreign investment in the Kingdom. In April 2016, the Saudi Government announced a broad set of socio-economic reforms, known as Vision 2030. Low global oil prices throughout 2015 and 2016 significantly lowered Saudi Arabia's governmental revenue. In response, the government cut subsidies on water, electricity, and gasoline; reduced government employee compensation packages; and announced limited new land taxes. In coordination with OPEC and some key non-OPEC countries, Saudi Arabia agreed cut oil output in early 2017 to regulate supply and help elevate global prices.

The Kingdom of Yemen (colloquially known as North Yemen) became independent from the Ottoman Empire in 1918 and in 1962 became the Yemen Arab Republic. The British, who had set up a protectorate area around the southern port of Aden in the 19th century, withdrew in 1967 from what became the People's Republic of Southern Yemen (colloquially known as South Yemen). Three years later, the southern government adopted a Marxist orientation and changed the country's name to the People's Democratic Republic of Yemen. The massive exodus of hundreds of thousands of Yemenis from the south to the north contributed to two decades of hostility between the states. The two countries were formally unified as the Republic of Yemen in 1990. A southern secessionist movement and brief civil war in 1994 was quickly subdued. In 2000, Saudi Arabia and Yemen agreed to delineate their border.

Fighting in the northwest between the government and the Huthis, a Zaydi Shia Muslim minority, continued intermittently from 2004 to 2010, and then again from 2014-present. The southern secessionist movement was revitalized in 2007.

Public rallies in Sana'a against then President Ali Abdallah SALIH - inspired by similar demonstrations in Tunisia and Egypt - slowly built momentum starting in late January 2011 fueled by complaints over high unemployment, poor economic conditions, and corruption. By the following month, some protests had resulted in violence, and the demonstrations had spread to other major cities. By March the opposition had hardened its demands and was unifying behind calls for SALIH's immediate ouster. In April 2011, the Gulf Cooperation Council (GCC), in an attempt to mediate the crisis in Yemen, proposed the GCC Initiative, an agreement in which the president would step down in exchange for immunity from prosecution. SALIH's refusal to sign an agreement led to further violence. The UN Security Council passed Resolution 2014 in October 2011 calling for an end to the violence and completing a power transfer deal. In November 2011, SALIH signed the GCC Initiative to step down and to transfer some of his powers to Vice President Abd Rabuh Mansur HADI. Following HADI's uncontested election victory in February 2012, SALIH formally transferred all presidential powers. In accordance with the GCC Initiative, Yemen launched a National Dialogue Conference (NDC) in March 2013 to discuss key constitutional, political, and social issues. HADI concluded the NDC in January 2014 and planned to begin implementing subsequent steps in the transition process, including constitutional drafting, a constitutional referendum, and national elections.

The Huthis, perceiving their grievances were not addressed in the NDC, joined forces with SALIH and expanded their influence in northwestern Yemen, which culminated in a major offensive against military units and rival tribes and enabled their forces to overrun the capital, Sanaa, in September 2014. In January 2015, the Huthis surrounded the presidential palace, HADI's residence, and key government facilities, prompting HADI and the cabinet to submit their resignations. HADI fled to Aden in February 2015 and rescinded his resignation. He subsequently escaped to Oman and then moved to Saudi Arabia and asked the GCC to intervene militarily in Yemen to protect the legitimate government from the Huthis. In March, Saudi Arabia assembled a coalition of Arab militaries and began airstrikes against the Huthis and Huthi-affiliated forces. Ground fighting between Huthi-aligned forces and anti-Huthi groups backed by the Saudi-led coalition continued through 2016. In 2016, the UN brokered a months-long cessation of hostilities that reduced airstrikes and fighting, and initiated peace talks in Kuwait. However, the talks ended without agreement. The Huthis and SALIH's political party announced a Supreme Political Council in August 2016 and a National Salvation Government, including a prime minister and several dozen cabinet members, in November 2016, to govern in Sanaa and further challenge the legitimacy of HADI's government. However, amid rising tensions between the Huthis and SALIH, sporadic clashes erupted in mid-2017, and escalated into open fighting that ended when Huthi forces killed SALIH in early December 2017. In 2018, anti-Huthi forces made the most battlefield progress in Yemen since early 2016, most notably in Al Hudaydah Governorate. In December 2018, the Huthis and Yemeni Government participated in the first UN-brokered peace talks since 2016, agreeing to a limited ceasefire in Al Hudaydah Governorate and the establishment of a UN Mission to monitor the agreement. In April 2019, Yemen's parliament convened in Say'un for the first time since the conflict broke out in 2014. In August 2019, violence erupted between HADI's government and the pro-secessionist Southern Transition Council (STC) in southern Yemen. In November 2019, HADI's government and the STC signed a power-sharing agreement to end the fighting between them.

frequent sand and dust storms

volcanism: despite many volcanic formations, there has been little activity in the past few centuries; volcanoes include Harrat Rahat, Harrat Khaybar, Harrat Lunayyir, and Jabal Yar

sandstorms and dust storms in summer

volcanism: limited volcanic activity; Jebel at Tair (Jabal al-Tair, Jebel Teir, Jabal al-Tayr, Jazirat at-Tair) (244 m), which forms an island in the Red Sea, erupted in 2007 after awakening from dormancy; other historically active volcanoes include Harra of Arhab, Harras of Dhamar, Harra es-Sawad, and Jebel Zubair, although many of these have not erupted in over a century

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 87% of budget revenues, 42% of GDP, and 90% of export earnings.

Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Approximately 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors; at the same time, however, Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population.

In 2017, the Kingdom incurred a budget deficit estimated at 8.3% of GDP, which was financed by bond sales and drawing down reserves. Although the Kingdom can finance high deficits for several years by drawing down its considerable foreign assets or by borrowing, it has cut capital spending and reduced subsidies on electricity, water, and petroleum products and recently introduced a value-added tax of 5%. In January 2016, Crown Prince and Deputy Prime Minister MUHAMMAD BIN SALMAN announced that Saudi Arabia intends to list shares of its state-owned petroleum company, ARAMCO - another move to increase revenue and outside investment. The government has also looked at privatization and diversification of the economy more closely in the wake of a diminished oil market. Historically, Saudi Arabia has focused diversification efforts on power generation, telecommunications, natural gas exploration, and petrochemical sectors. More recently, the government has approached investors about expanding the role of the private sector in the health care, education and tourism industries. While Saudi Arabia has emphasized their goals of diversification for some time, current low oil prices may force the government to make more drastic changes ahead of their long-run timeline.

Yemen is a low-income country that faces difficult long-term challenges to stabilizing and growing its economy, and the current conflict has only exacerbated those issues. The ongoing war has halted Yemen's exports, pressured the currency's exchange rate, accelerated inflation, severely limited food and fuel imports, and caused widespread damage to infrastructure. The conflict has also created a severe humanitarian crisis - the world's largest cholera outbreak currently at nearly 1 million cases, more than 7 million people at risk of famine, and more than 80% of the population in need of humanitarian assistance.

Prior to the start of the conflict in 2014, Yemen was highly dependent on declining oil and gas resources for revenue. Oil and gas earnings accounted for roughly 25% of GDP and 65% of government revenue. The Yemeni Government regularly faced annual budget shortfalls and tried to diversify the Yemeni economy through a reform program designed to bolster non-oil sectors of the economy and foreign investment. In July 2014, the government continued reform efforts by eliminating some fuel subsidies and in August 2014, the IMF approved a three-year, $570 million Extended Credit Facility for Yemen.

However, the conflict that began in 2014 stalled these reform efforts and ongoing fighting continues to accelerate the country's economic decline. In September 2016, President HADI announced the move of the main branch of Central Bank of Yemen from Sanaa to Aden where his government could exert greater control over the central bank's dwindling resources. Regardless of which group controls the main branch, the central bank system is struggling to function. Yemen's Central Bank's foreign reserves, which stood at roughly $5.2 billion prior to the conflict, have declined to negligible amounts. The Central Bank can no longer fully support imports of critical goods or the country's exchange rate. The country also is facing a growing liquidity crisis and rising inflation. The private sector is hemorrhaging, with almost all businesses making substantial layoffs. Access to food and other critical commodities such as medical equipment is limited across the country due to security issues on the ground. The Social Welfare Fund, a cash transfer program for Yemen's neediest, is no longer operational and has not made any disbursements since late 2014.

Yemen will require significant international assistance during and after the protracted conflict to stabilize its economy. Long-term challenges include a high population growth rate, high unemployment, declining water resources, and severe food scarcity.

note: most people are employed in agriculture and herding; services, construction, industry, and commerce account for less than one-fourth of the labor force

one of the most progressive telecom markets in the Middle East; mobile penetration high, with a saturated market; mobile operators competitive and meeting the demand for workers, students and citizens working from home; Huawei partners with operator to provide 5G to dozens of cities; broadband is available with DSL, fiber, and wireless; mobile penetration is high; restrictive monarchy places limits on information and services available online; authorities operate extensive censorship and surveillance systems; major importer of broadcasting equipment from UAE and China (2020)

large percent of the population is in need of humanitarian assistance and telecom services are vital but disrupted; mobile towers are often deliberately targeted; maintenance is dangerous to staff; aid organizations rely on satellite and radio communications; scarcity of telecom equipment in rural areas; ownership of telecom services and the related revenues and taxes have become a political issue; Chinese company Huawei helping to rebuild some equipment (2020)

as of 2020-2021, military and security forces operating in Yemen consists of a patchwork of government, non-state, and foreign-backed regular, semi-regular/militia, and paramilitary forces, often with informal command organizations and conflicting, fluid, or overlapping agendas, loyalties, and relationships; in addition, the Huthis maintain opposition military and security forces

Republic of Yemen Government (ROYG) forces; Ministry of Defense: Yemeni National Army, Air Force and Air Defense, Navy and Coastal Defense Forces, Border Guard, Strategic Reserve Forces (includes Special Forces and Presidential Protection Brigades, which are under the Ministry of Defense but responsible to the president), Popular Committee Forces (government-backed tribal militia); Ministry of Interior: Special Security Forces (paramilitary; formerly known as Central Security Forces), Political Security Organization (state security), National Security Bureau (intelligence), Counterterrorism Unit

Saudi-backed forces: paramilitary/militia border security brigades based largely on tribal or regional affiliation (deployed along the Saudi-Yemen border, especially the areas bordering the governorates of Saada and Al-Jawf)

United Arab Emirates-backed forces include tribal and regionally-based militia and paramilitary forces (concentrated in the southern governates):  Southern Transitional Council (STC) forces, including the Security Belt Forces, the Shabwani and Hadrami "Elit-e" Forces, the Support and Backup Forces (aka Logistics and Support Forces), Facilities Protection Forces, and Anti-Terrorism Forces; Republican Forces; Joint Forces; note - under the 2019 Riyadh Agreement, the STC forces are to be incorporated into Yemen's Ministries of Defense and Interior under the authority of the HADI government

Huthi: ground, air/air defense, coastal defense, presidential protection, special operations, missile, and tribal militia forces

information limited and widely varied; ROYG: up to 300,000 estimated military, paramilitary, and militia forces; UAE- and Saudi-backed forces: 150-200,000 estimated trained fighters; Huthis: up to 200,000 estimated fighters (2021)

Saudi Arabia has reinforced its concrete-filled security barrier along sections of the now fully demarcated border with Yemen to stem illegal cross-border activities; Kuwait and Saudi Arabia continue discussions on a maritime boundary with Iran; Saudi Arabia claims Egyptian-administered islands of Tiran and Sanafir

Saudi Arabia has reinforced its concrete-filled security barrier along sections of the fully demarcated border with Yemen to stem illegal cross-border activities

Tier 2 Watch List - Saudi Arabia does not fully meet the minimum standards for the elimination of trafficking, but is making significant efforts to do so and was upgraded to Tier 2 Watch List;