Aden: The Central Bank announces the names of eight banks that will relocate their headquarters from Sana'a.

The Central Bank of Yemen in Aden has revealed the names of eight commercial banks whose management has informed it that they will relocate their headquarters from Sana'a to the interim capital, Aden, in southern Yemen.

The bank said in a statement, "The banks have informed the Central Bank of Yemen in writing of the transfer of their headquarters and operations from Sana'a to Aden to avoid falling under the strict sanctions imposed by the United States following the decision to designate the Houthi group as an international terrorist organization."

The Central Bank listed the names of the eight banks as follows: -

1. Solidarity Bank
2. Al-Kuraimi Islamic Microfinance Bank
3. Yemen Bahrain Comprehensive Bank
4. Yemen Islamic Bank for Finance and Investment
5. Saba Islamic Bank
6. Yemen Gulf Bank
7. Yemen Commercial Bank
8. Al Amal Microfinance Bank

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— CBY | Central Bank of Yemen (@cby_hq) March 16, 2025

The Central Bank announced last Saturday that it had received written notification from the majority of banks headquartered in the capital, Sana'a, stating that they had decided to relocate their operations to the interim capital, Aden, to avoid being subject to sanctions.

While welcoming this step, the bank affirmed its readiness and preparedness to provide all possible forms of support and protection to all banks, financial institutions, and economic institutions to ensure they continue to provide their services in all governorates.

The bank stated that it "will ensure the full implementation of the relocation decision and issue certificates to that effect." It called on all banks, financial institutions, and economic institutions to handle the event responsibly and with utmost care in order to protect citizens' property.

Mandatory transfer of banks

On March 4, the US State Department announced the designation of the Houthi group in Yemen as a "foreign terrorist organization," following US President Donald Trump's call for such a move earlier this year. This made the relocation of banks to areas controlled by the legitimate government mandatory.

A tit-for-tat economic war erupted between the legitimate government and the Houthis in July 2024. The Central Bank in Aden issued a decision to suspend the licenses of six of the largest banks operating in Houthi-controlled areas after they refused to relocate their headquarters to Aden. The group responded by banning transactions with 13 banks in government-controlled areas.

The escalation ended with an agreement announced by UN envoy to Yemen, Hans Grundberg, which included several provisions for de-escalation related to the banking sector. There are approximately 16 commercial banks in Yemen, with branches in most governorates.