South Yemen and the Economic File – From Security to Development

Analytics - 7 days ago

South Eye | Report - Exclusive


After South Yemen has proven its ability to manage the security file with efficiency and professionalism—through a military institution built from the ground up and with direct support from regional allies—the next and most sensitive challenge emerges: the economy. Security alone is not enough to build a stable future, and no society can rise without a coherent economic system capable of creating jobs, generating revenue, and achieving sustainable development.

The upcoming phase requires a shift from crisis management to southern state-building. The Southern Transitional Council must lead this transformation with confidence and a sense of political responsibility, grounded in broad southern public support, a trusted regional alliance, and growing international understanding.

South Yemen possesses vast economic potential, from natural resources such as oil and gas to strategic seaports and airports, and a young, adaptable workforce. However, these resources remain either squandered, beyond state control, or governed by structures of Yemeni corruption and influence that do not reflect the aspirations of the Southern people.

Building an independent southern economic system does not mean isolation, but rather establishing a new relationship based on mutual interests and balanced partnerships. The southern leadership must work to liberate resources from centralized Yemeni control, construct an independent financial and banking system, and restructure revenues and expenditures in a way that reflects development priorities.

Practically, South Yemen can begin with concrete steps including: reviewing oil and gas contracts, reactivating productive sectors, implementing transparent local governance, rebuilding trust with the local private sector and the diaspora, and launching targeted programs to support small businesses and improve the investment climate.

Success in this path requires direct support from allies—not just financial assistance, but also technical and institutional expertise, through the establishment of technical support units, administrative training, and access to advanced tools for managing resources and economic indicators. South Yemen also needs international backing to access funding and investment windows, free from the burdensome conditions that have historically trapped many countries under traditional financial institutions.

The international community, in search of a reliable partner in this strategic region, should view South Yemen as a real opportunity—not a postponed issue. The southern people are demonstrating high levels of maturity and commitment, and they seek to build a realistic development model—open to the world, grounded in good governance and accountability.

Achieving southern economic independence is not a luxury, nor a deferred goal—it is an existential necessity. Without reclaiming control over the economic decision-making process, South Yemen cannot protect its security achievements or convince internal and external actors that it is on the path to sovereign statehood. Every delay on this front only grants space for chaos, corruption, and instability to return.

What southerners want today is not promises, but partnerships. Not conferences, but executable plans. They are ready to bear the cost of stability—provided there is honest national leadership, sincere regional support, and an international community that sees South Yemen as a winning legitimate bet.