From cash to capital: leveraging remittances for Yemen’s economic future

Project report Feb 2026 Sustainable Growth, financial access and State Fragility initiative

In Yemen, remittances have become one of the most important external financial inflows, at times surpassing FDI and even rivalling levels of foreign assistance. They are not a substitute, but are a complementary flow that helps households cope with overlapping economic pressures.

However, much of Yemen’s remittance economy remains outside regulatory oversight, reducing its potential to strengthen financial institutions, improve monetary policy, or contribute to long-term development.