Aden (South 24 Center)

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On Wednesday, July 30, Yemen’s internationally recognized government announced a series of economic and administrative measures in an attempt to contain growing public anger amid widespread protests in the governorates of Hadramout, Lahj, and Al-Dhalea, triggered by the continuing deterioration of basic services, particularly electricity.

Prime Minister Salem bin Brik, while chairing the government’s regular meeting in the capital, Aden, stated that “the government is fully aware of the exceptional challenges it faces.”

The meeting, which was dedicated to discussing political, security, economic, and service-related developments, also saw the participation of Central Bank Governor Ahmed Ghaleb Al-Maabqi, who presented a comprehensive report on the financial and monetary performance of the economy from January to June 2025. The report included measures to regulate the currency market, enhance oversight of exchange companies, and prevent any new currency issuance.

Al-Maabqi confirmed that the Central Bank had completed the relocation of the entire banking system to Aden and was preparing to launch a unified financial network under a new system, along with activating the national payment system with support from the World Bank, describing this as a "qualitative step to promote transparency and financial inclusion."

The report indicated that the Central Bank had shut down dozens of non-compliant exchange companies, activated public debt instruments, and introduced new mechanisms to finance the deficit without affecting the monetary base, contributing to the improvement of the Yemeni rial exchange rate, which dropped below 2,000 rials per dollar in the banking market as of 8:30 p.m. on Thursday, according to local data.

The government, for its part, directed stricter market monitoring and the prosecution of those manipulating the prices of essential goods, stressing that “the improvement in the exchange rate must immediately reflect on citizens”.

It also announced its intention to publish the names of government entities that fail to deposit revenues into the general account, as part of what the Prime Minister described as a “policy of transparency and accountability”.

In parallel, the Cabinet issued a resolution forming a high-level committee to prepare the 2026 state budget, after years of delays, describing the move as “a pivotal step toward enhancing financial discipline and reprioritizing public spending”.

The meeting also included extensive discussions on the growing protests. The Cabinet expressed its “full understanding of the legitimate popular demands”, especially in Hadramout, where demonstrations have continued since Sunday, but warned against “attempts by certain parties to exploit citizens' suffering for political ends or to spread chaos.”

On Thursday, July 31, the protests extended to Al-Dhalea city and Al-Habilayn in Lahj governorate, where dozens took to the streets over the prolonged power outages and the decline in public services. The deployment of security forces was intensified in anticipation of any escalation.

The Southern Transitional Council (STC)’s Presidium issued a statement on Thursday expressing support for the popular demands in Hadramout governorate, calling the wave of anger and escalation in several coastal and inland cities as “legitimate”. The STC emphasized the right to peaceful protest while voicing its rejection of any acts of sabotage or security breaches.

The Presidium urged the Presidential Leadership Council and the government to “assume their responsibilities and take urgent actions to find comprehensive and lasting solutions to the deteriorating conditions,” stressing the importance of coordination with the Arab Coalition and the International Quartet to ensure stability and address the deepening crises.

Meanwhile, the protests in Hadramout led to the death of a demonstrator on Thursday, who was shot by security forces in Tarim district. The Hadramout Security Committee acknowledged the incident but said in a statement that security patrols had been pelted with stones while trying to reopen blocked roads, prompting a soldier to fire a warning shot that accidentally struck the civilian.

The statement added that the Director General of Security and Police in Wadi and Desert Hadramout has ordered an immediate investigation to hold those responsible accountable and uncover the circumstances of the incident. The committee also warned of “infiltrating elements affiliated with the Houthis and Al-Qaeda attacking security forces and attempting to incite chaos by exploiting the protests.”

#BREAKING
Local media: Citizen killed by security forces gunfire while dispersing protesters in Tarim city, Hadramout governorate#south24 pic.twitter.com/7LeN7a28Y3

— South24 | English (@South24E) July 31, 2025

In a related event, in Aden, government officials met on Thursday with representatives of the World Food Programme (WFP) to discuss the impact of the sharp decline in international funding and its direct effect on humanitarian and relief aid in Yemen.

Officials at the Ministry of Industry and Trade warned that the reduction in international support threatens to halt critical programs benefiting millions amid a suffocating economic and living crisis.

The government called on its international partners to establish emergency funding mechanisms to ensure the continuity of aid, warning that any gap in this area could lead to a “comprehensive humanitarian catastrophe,” especially in governorates most affected by the ongoing conflict.

In a separate development, Presidential Leadership Council member Aidrous Al-Zubaidi affirmed the need to leverage Chinese expertise to develop sustainable strategic solutions to the electricity crisis. This came during his meeting on Thursday with the Acting Chinese Ambassador to Yemen, Shao Cheng, in the capital, Aden.

Al-Zubaidi stated that the electricity crisis now poses a direct threat to economic stability and essential services, and called for urgent Chinese support in this vital sector. The two sides also discussed ways to enhance bilateral cooperation in the sphere of ports, agriculture, education, and capacity building.