"The regions in the South are going through an extremely sensitive economic phase, and the upcoming economic conferences must focus on practical and tangible issues that directly affect citizens' lives..."

Abdullah Al-Shadli (South24 Center)

The capital city of Aden is preparing in the near future to host a series of economic and investment conferences, viewed as a potential turning point in Yemen’s path of recovery and reconstruction. These events are not routine protocol activities, but rather a practical test of the government’s and the Southern Transitional Council’s ability to attract international support and translate previous promises into tangible results on the ground.

At the forefront of these events is the First Economic Conference, to be held in Aden in November 2025, with preparations underway in coordination between the Ministry of Trade and Industry and the private sector. This conference is expected to serve as a platform to present a new image of the city as a promising economic destination and to promote investment opportunities across multiple sectors.

Parallelly, an Energy Conference is also expected to be held during the same period, led by the Ministry of Electricity and Energy in partnership with the World Bank. This initiative aims to present a comprehensive vision for the future of the electricity sector in areas under the internationally recognized government’s control and to attract investments in sustainable energy projects.

Simultaneously, the government, through the Ministries of Planning and Foreign Affairs, is preparing for a Donors Conference in Aden. Although its final date has not yet been determined, it is expected to be held during the same timeframe, and envisioned as a key platform for securing direct financial commitments for reconstruction and development projects.

In the same context, preparations are underway for a Food Security Conference, organized by the Ministry of Planning and International Cooperation and the Ministry of Agriculture and Fisheries, in partnership with the Gulf Cooperation Council countries. It is to be held in Riyadh, Saudi Arabia, before the end of the year, reflecting a regional commitment to supporting Yemen in one of its most vital sectors.

While economic circles anticipate these events, the public is placing its hopes on tangible outcomes that would contribute to price stability and improvement in basic services. The upcoming conferences essentially represent a dual test: of internal recovery promises on one hand, and of the seriousness and credibility of the international partners on the other, amid a relative improvement in the exchange rate of the Yemeni rial after years of unprecedented collapse.

Local Stakes

The Yemeni government and local authorities in Aden are placing significant bets on these conferences, viewing them as a golden opportunity to reintroduce the city as a promising economic hub and as a platform to boost confidence in the local investment environment.

In this regard, Deputy Minister of Planning and International Cooperation, Mansour Zaid, stated that the ministry aims through these conferences to highlight the state's keenness to secure investment, assure potential investors of a safe and attractive environment, and showcase promising investment opportunities in the developmental and services sectors.

He told South24 Center that the ministry also emphasizes on the importance of partnership between the government and the private sector, and the value of learning from participants’ experiences and transferring expertise to achieve progress across various fields and support the path of sustainable development.

The stakes of the upcoming conferences are not limited to the local dimension but extend to the international community and donors who have long pledged support for Yemen. The central challenge remains whether these promises will this time be translated into tangible commitments or remain confined to speeches and declarations.

In this context, Yemeni economist Dr. Issa Abu Hulaika believes that the international conferences planned in Aden represent an important opportunity to revive the national economy and attract external funding. However, he warned that the real risk lies in the implementation phase, and whether the government is capable of absorbing the support and channeling it into sustainable developmental and economic projects.

Abu Hulaika added in his statement to South24 Center: “Previous experiences have shown that donors do not offer grants without conditions. They often require financial and administrative reforms and the provision of a conducive investment environment. Therefore, the government must seriously work on selecting qualified national personnel to manage these projects, with direct oversight from relevant authorities, foremost among them the Ministry of Planning and International Cooperation.”

He pointed out that recent measures by the Central Bank and the Ministry of Finance have boosted confidence and may encourage donors to provide greater support. However, he emphasized that such support will remain conditional on the government’s commitment to fighting corruption and advancing reforms. He confirmed that there is notable interest from the World Bank, the European Union, and major donor countries.

Abu Hulaika added that the Donors Conference will only be fruitful if the government presents clear plans and specific economic projects in sectors such as education, health, energy, and infrastructure. He also warned against excessive reliance on aid, considering it a factor that fosters dependency and weakens local initiatives. He called for directing funding toward small and medium enterprises, agriculture, fisheries, and entrepreneurship, to ensure job opportunities for the youth.

Reconstruction and Development File

The stakes of the upcoming conferences are not limited to attracting financial support or international pledges but also include the urgent need to rebuild the deteriorating infrastructure in Aden and other southern regions, especially in the electricity, ports, and roads sectors.

In this regard, Professor of Public Finance and Political Economy at the University of Aden, Dr. Mohammed Jamal Al-Shaibi, explained that southern regions are undergoing an extremely sensitive economic phase and that the upcoming economic conferences must focus on practical and tangible issues that directly affect citizens’ lives, away from ceremonial aspects or general slogans.

Al-Shaibi told South24 Center that fully reactivating the Aden Refineries would be a pivotal step in revitalizing the national economy, given the sector’s central role in refining petroleum derivatives and generating significant financial resources for the state, in addition to directly and indirectly employing thousands of workers.

He observed that the refineries’ absence from performing their role in recent years has been one of the main reasons for the worsening fuel crisis and rising prices, which directly impacted overall living conditions. He also affirmed that the country possesses promising opportunities to revive its industrial and agricultural base that existed in past decades, provided the resources are managed effectively and public-private partnerships are strengthened.

Al-Shaibi added that the investment climate in Aden and other governorates urgently needs fundamental reforms to ensure transparency and stability, which would encourage both local and international investors to inject capital into genuine developmental and productive projects. He stressed that achieving economic recovery will not be possible without addressing the challenges hindering reforms, foremost among them being financial and administrative corruption and manipulation of public revenues, in addition to reducing excessive reliance on imports by supporting local productive sectors.

He also noted that the agriculture and fisheries sectors could become a significant economic lever if natural resources are invested in scientifically and systematically, and if the necessary infrastructure and technologies are provided to develop these sectors. He called for the economic conference to produce a matrix of realistic and implementable projects focused on productive sectors and contributing to broad job opportunity.

Challenges

Alongside promises and ambitions, a set of formidable challenges threatens the course of the upcoming economic conferences in Aden, foremost among them corruption, overlapping authorities, weak governance, and the ongoing war and political conflict. These obstacles make the success of any economic plan contingent on the state’s ability to enforce serious institutional reforms and provide a stable investment climate.

In this context, member of the Economic Committee in the Southern Transitional Council, Dr. Fatima Baamr, affirmed that investment is the primary driver of any economic or social growth, noting that employment largely depends on attracting local and foreign investments and localizing industries and technological knowledge.

Baamr told South24 Center in a statement that most countries around the world seek to attract foreign capital by offering incentives, facilities, and guarantees. However, capital is inherently cautious and requires, above all, security, stability, infrastructure, and clear laws.

She explained that holding economic conferences and inviting businessmen is one of the most prominent means of marketing and promoting investment opportunities. She pointed out that the plans proposed in Aden aim to present promising opportunities in the fields of industry, oil, agriculture, fisheries, tourism, and logistics, benefiting from the country’s diverse terrain, strategic location, and ownership of important ports along the international shipping line that have yet to be properly utilized.

Baamr emphasized that the conference will work on identifying the main obstacles and difficulties faced by investors and propose appropriate solutions, stressing that its success requires the involvement of the private sector and effective promotion.

However, Baamr warned of factors threatening investment. She noted that some investors who had previously arrived and started their projects had faced obstacles even from the authorities themselves, which would make any investor hesitate a thousand times before committing funds. She confirmed that the solution lies in implementing a one-stop-shop system to streamline procedures for investors, benefit from others’ experiences, and build on existing achievements as a fundamental condition for the success of any investment endeavor in Aden.

For his part, Deputy Minister of Planning Mansour Zaid acknowledged that limited financial capabilities, lack of efficiency and expertise of human resources, along with the ongoing war and rampant corruption in state institutions, represent the main obstacles. However, he emphasized that these challenges are surmountable through sincere will, better application of governance principles, and the expected technical support from international partners, foremost among them the World Bank.