The Yemeni Customs Authority has drawn a clear line between life’s necessities and its luxuries, confirming that the new customs exchange rate liberalization decision will not affect wheat, rice, and essential medicines, while luxury and non-essential goods will be primarily impacted.
The official body explained that this liberalization comes in implementation of Presidential Leadership Council Decision No. (11) of 2025, and is part of a package of reforms aimed at addressing existing economic and financial imbalances.
The fundamental reason for this decision, according to the statement, was the continued calculation of customs duties for years at an exchange rate much lower than the actual market rate. This practice created a large gap in public revenues, benefiting specific groups of importers and traders, while those goods were sold to consumers at actual market prices, leading to economic distortions and an imbalance in tax and customs fairness.
The authority expects, based on preliminary estimates, that this decision will raise public revenues during 2026 compared to last year. These expected revenues will enhance the state’s ability to finance public services and meet basic obligations, such as paying salaries and improving services, especially given the challenges resulting from the war and the decline in oil resources.
The success of this transformation, as the customs authority confirmed, is linked to the continuation of the comprehensive financial and economic reform path, which includes unifying revenue sources, improving the efficiency of customs and tax collection, and enhancing transparency and combating corruption and evasion.
In a parallel track, the government approved accompanying oversight measures for the decision. These measures included directives to ministries and local authorities to intensify market oversight and take legal steps against any attempts to impose unjustified increases in the prices of basic goods. Relevant agencies will monitor price movements to prevent any monopolistic or exploitative practices.
Yemen
Yemen is a country in the southwestern corner of the Arabian Peninsula with a rich history dating back to ancient civilizations such as the Sabaean Kingdom, famous for the legendary Queen of Sheba and the Marib Dam. It was a key center for the frankincense and myrrh trade and later embraced Islam in the 7th century, becoming a significant cultural and religious hub. In modern times, Yemen has faced political instability and conflict, but its historic cities like Sana’a and Shibam remain UNESCO World Heritage sites, showcasing unique architecture and deep cultural heritage.
Yemeni Customs Authority
The Yemeni Customs Authority is the government agency responsible for regulating the import and export of goods, collecting customs duties, and preventing smuggling in Yemen. Its history is deeply tied to the country’s strategic position along ancient trade routes, including the famed Incense Route, and it has evolved through various periods of rule, from the Ottoman Empire to British colonial influence in Aden. Today, the authority operates amidst ongoing conflict, facing significant challenges in maintaining border security and facilitating legitimate trade.
Marib Dam
The Marib Dam, located in present-day Yemen, was an ancient engineering marvel built by the Sabaean kingdom around the 8th century BCE. It was a massive stone and earth structure that irrigated thousands of acres of farmland, supporting a prosperous civilization for over a millennium. The dam collapsed several times due to neglect and natural disasters, with its final failure in the 6th century CE leading to the decline of the region’s agricultural society.
Sana’a
Marib Dam
The Marib Dam, located in present-day Yemen, was an ancient engineering marvel built by the Sabaean kingdom around the 8th century BCE. It was a massive earthen and stone structure that irrigated thousands of acres of farmland, supporting a prosperous civilization for over a millennium. The dam collapsed around the 6th century CE, an event recorded in the Quran, and its ruins remain a significant archaeological and cultural site.
Sana’a
Sana’a is the capital of Yemen and one of the oldest continuously inhabited cities in the world, with a history dating back over 2,500 years. Its Old City, a UNESCO World Heritage site, is renowned for its distinctive multi-story tower houses made of rammed earth and decorated with intricate geometric patterns. Historically, Sana’a was a major center for the spread of Islam and flourished as a key trading hub along ancient incense routes.
Shibam
Shibam, often called the “Manhattan of the Desert,” is a historic town in Yemen known for its distinctive mud-brick skyscrapers, some rising up to seven stories high. This ancient walled city, founded in the 16th century, was a key stop on the frankincense and spice trade routes, and its dense vertical architecture was designed for defense and efficient use of limited land. Recognized as a UNESCO World Heritage site, Shibam stands as a remarkable example of early urban planning and traditional construction techniques.
Incense Route
The Incense Route was a network of ancient land and sea trading routes connecting the Mediterranean world with sources of frankincense and myrrh in southern Arabia, East Africa, and India. Flourishing from roughly the 3rd century BCE to the 2nd century CE, it facilitated the exchange of luxury goods, ideas, and cultures, with key hubs like Petra and Palmyra growing wealthy from the trade. The route’s decline began with the rise of Roman maritime trade and the spread of Christianity, which reduced demand for these aromatic resins.
Sabaean Kingdom
The Sabaean Kingdom, also known as Sheba, was an ancient civilization in present-day Yemen that flourished from around the 8th century BCE to the 3rd century CE. Renowned for its wealth, the kingdom controlled the lucrative frankincense and myrrh trade and is famously associated with the biblical Queen of Sheba. Its capital, Marib, featured impressive engineering marvels like the Great Dam, which supported a prosperous agricultural society.
Queen of Sheba
The Queen of Sheba is a legendary figure from ancient history, mentioned in the Bible, the Quran, and Ethiopian traditions. She is best known for her visit to King Solomon in Jerusalem, bringing gifts and testing his wisdom, which is described in the First Book of Kings. Her story symbolizes wealth, power, and cross-cultural exchange, and she is considered a foundational figure in Ethiopian history, where she is believed to have given birth to Menelik I, the first emperor of Ethiopia.
Yemeni Customs Authority
The Yemeni Customs Authority is the government agency responsible for regulating the import and export of goods, collecting customs duties, and preventing smuggling in Yemen. Its history is closely tied to Yemen’s strategic position along ancient trade routes, with modern customs operations formalized after the country’s unification in 1990. The authority has faced significant challenges due to ongoing conflict, impacting its ability to enforce trade regulations and secure borders effectively.
Aden
Aden is a historic port city in Yemen, located on the Gulf of Aden. Its strategic location made it a vital trading hub for centuries, notably under British colonial rule from 1839 until 1967. The city is known for its ancient volcanic crater, the Cisterns of Tawila, and its role as a key refueling stop along global shipping routes.
