Houthis Allegedly Embezzled $103 Billion in Yemen Since the Coup, Accuses Information Minister

Housty Rebel Forces Allegedly Appropriate $103 Billion for War Funding and Red Sea Assaults, Claims Yemeni Official

, and ASMedia

2025 August 31 . 2:19 PM

2 min read

Houthis Allegedly Embezzled $103 Billion After Taking Power in Yemen's Coup, Claims Yemeni Minister

Houthis Allegedly Embezzled $103 Billion in Yemen Since the Coup, Accuses Information Minister

In Yemen, the economic crisis has deepened, with public services worsening due to the practices of the Houthis, who control a parallel economy. This parallel economy, characterised by unauthorized levies, unrecognized currency, and unchecked financial flows, is enabling the Houthis to prolong the conflict and fuel regional instability.

The Houthis impose escalating illegal levies and arbitrary financial demands on businesses, manufacturers, and service providers, significantly raising costs, forcing business closures, and reducing consumer purchasing power in Houthi-controlled areas. This extortion creates a climate of fear and unpredictability, accelerating economic collapse and fragmenting Yemen’s markets.

The Houthis also undermine economic unity by printing their own currency notes and coins, actions condemned by Yemen’s internationally recognized central bank and the UN Special Envoy for Yemen as reckless measures that deepen the monetary divide and economic instability.

The cost of food and medicine has increased due to these practices, driving widespread poverty in Yemen. The humanitarian crisis in Yemen has been further exacerbated, with the seized funds not being invested in public services or used to pay salaries for government employees. Instead, the funds are being used to finance the ongoing war in Yemen.

The Houthis' illicit economic practices have also escalated terrorist activity, particularly through strikes on strategic maritime routes. A missile was launched at Israel from Yemen, highlighting the regional tensions caused by the Houthis' actions, as they are Iran-backed and have launched missiles and drones beyond Yemen's borders.

Efforts to cut off Houthi funding include economic sanctions by the US Treasury and other countries targeting Houthi financial networks. The establishment of a National Committee for Regulating and Financing Imports under Yemen’s legitimate government aims to mandate all import requests for essential goods go through official banks and exchange companies for vetting, denying entry to unapproved shipments that could fund the Houthis.

The UN and international actors call for coordinated political dialogue and economic de-escalation to restore Yemen’s unified institutions and reduce the Houthis’ autonomous economic control, seen as essential to stabilizing the fragile economy. The US has also cracked down on Houthi-linked companies in Yemen and the UAE.

In conclusion, the Houthi parallel economy weakens Yemen’s already fragile economy by extorting businesses and fragmenting monetary systems, fueling conflict and regional instability. International and Yemeni government efforts seek to choke off illicit financing through sanctions, import controls, and diplomatic measures.