After the boom of the past years.. Houthi practices paralyze commercial movement in Ibb Governorate (special report)

As you walk along Taiz and Al-Adain Streets, the heart of commercial activity in the city of Ibb (central Yemen), these days, you encounter shops with the words “for sale or rent” written on their facades, in an unusual scene in the city, which is crowded with life and whose vital streets have expanded significantly during the years of war that Ibb has escaped, unlike the most important surrounding governorates.

Years ago, or even the first months of this year, it was impossible to find an empty shop on Al-Udain and Taiz Streets in Ibb city. To vacate a shop, you would have to pay millions of riyals to “move a foot” to the shop owner who was renting it. However, the matter has now become within reach after an unprecedented state of stagnation witnessed by the markets of the governorate center and its secondary cities.

It is 4:30 pm - rush hour - and some of the city's markets and shops are almost empty of customers, while vendors compete with you, complaining of an almost complete halt in sales and low income, which is causing them huge losses in rents and workers' obligations, not to mention the Houthi levies that do not stop.

Many factors lie behind the state of stagnation that the governorate is witnessing at this time of year. In addition to the difficult living conditions of citizens, the interruption of salaries and cash assistance from organizations to the displaced, and the decline in cash transfers to expatriates, Houthi levies stand out as one of the most prominent of these factors.

This recession has forced many small shops to close or, at best, to rent them out, while others have been forced to change their activities. As for wholesalers, information indicates that a fair number have closed their shops and declared bankruptcy, while others have left the governorate to other governorates or countries.

recession after boom

 In recent years, the governorate center and its secondary cities have witnessed a major expansion in real estate construction, coinciding with a major boom in investment projects in the health, tourism (restaurants, hotels, cafes), food, and clothing sectors. Commercial activity has expanded into back streets and neighborhoods, until Ibb has become a destination for visitors.

This boom, which coincided with the large displacement cases that the governorate received, is due to the presence of a class with capital that fled from cities witnessing war, such as Taiz, Aden, Al-Dhale’e, and Al-Hodeidah, or from those fleeing the air raids that were concentrated at the beginning of the war in the capital, Sana’a, to a large extent.

Because the governorate did not witness any military operations, it became a safe haven for many Yemeni capitalists and cadres in various fields, and this was reflected on the ground, as luxurious buildings and shops were constructed, and hundreds of restaurants, hotels, medical centers, and hospitals were opened, in addition to shopping malls and complexes specializing in food and clothing.

However, during the last two years, with the country entering a state of relative calm on the military level, the signs of stagnation in the governorate began to appear more, as real estate witnessed a major stagnation, followed by urban movement that almost completely stopped. However, what turned into a state of concern was the state of commercial stagnation prevailing in the governorate during the last months, which prompted many large merchants - we are withholding their names - to close or leave the governorate, not to mention the closure of dozens of small shops.

Adel Al-Adini, a grocery store owner, describes the current situation in the governorate, saying: “These months are a clinical death for commercial activity, a deadly disaster. All that remains is the death of the citizen and then the apocalypse will come.”

He added in another post on his Facebook account that the country is living a tragic reality: extreme poverty, the interruption of employees’ salaries, high unemployment rates, a humanitarian crisis, and daily suffering.

Al-Adini confirms that the situation has become unbearable, confirming that he is seriously considering moving abroad to work in any field, but what is hindering him is the cost of the work visa.

For his part, Ashraf, who owns a grocery store on a non-main street west of Ibb city, confirms that the daily income from his grocery store is no longer enough to cover his daily expenses and those of his family of seven, not to mention the worker’s wages and obligations to suppliers.

He added in an interview with "Yemeni Youth Net", "The buying and selling movement is almost at a standstill...an hour passes and no one enters the store," noting that he has been forced to flee from suppliers who flock to collect their money, and he is now thinking of renting the store and looking for another job opportunity.

In response to the most important reasons, he sums it up: “People don’t have money.”

Taxes burdened merchants

Information obtained by "Yemeni Youth Net" confirms that the Houthi militia's extortions and blackmail were the main factor behind the bankruptcies that a number of stores and shops in Ibb Governorate were exposed to in various commercial activities.

According to the information we obtained from several sources, the militia turned the boom in commercial activity witnessed by the governorate into an opportunity for looting, profit, and raising revenues, and blackmailed merchants until many of them declared bankruptcy.

The sources indicated that some Houthi leaders stipulated that some merchants and investors obtain fixed percentages of income in exchange for opening their projects, which turned those leaders into partners without capital, and this certainly had harsh consequences for the merchants.

The prominent activist in Ibb, Ibrahim Asqin, also highlighted in several discussions over the past few days the state of commercial conditions in the governorate as a result of Houthi levies, saying: “Ibb governorate has tried not to lose much since the beginning of the war, as owners of capital have headed to it from the areas affected by the war to open their projects and shops, as it is safe and stable, and there has been an unprecedented commercial movement there.”

He added: "But where!! With whom!! Al-Houthi and his group are present and watching all of this. They have left no means, pretext, or name to plunder the big and small merchants without using it (taxes, duties, improvement, customs, war effort, the Prophet's birthday, tourism, the Office of Industry and Trade, the Day of Allegiance, the Day of the Scream, support for the missile force, the pretext of supporting Gaza, the pretext of supporting Lebanon, the right of Sayyid Hassan, the right of Sayyid Hussein...).

He explained in a tweet that as a result, many merchants fled, some went bankrupt, hundreds of shops, restaurants, bakeries, grocery stores, markets and other establishments closed their doors, and others were put up for sale, vacancy and rent, while a large number of shops and establishments are unable to pay rents.

Ibb Governorate..
The governorate under the control of the Houthi militia
A governorate that has tried not to lose much since the beginning of the war.
Capitalists flocked to it from war-torn areas to open their projects and shops, as it is safe and stable.
There was an unprecedented commercial movement there.
But where!!
With whom!!
Al-Houthi and his group... pic.twitter.com/8mf3pW0qPR

- Ibrahim Asqin (@IbrahimAsqin) November 19, 2024

Destructive Houthi practices

To know the most important reasons and motives that caused the recession in many commercial sectors and the losses incurred by the markets in Ibb Governorate as a model for the governorates under the control of the Houthi militia, from an economic perspective, the journalist specializing in economic affairs, "Wafiq Saleh", confirmed that this "is due to the significant decline in consumer spending on goods and services by the population, as a result of the imbalances and destructive practices of economic activities by the Houthi militia."

Speaking to "Yemeni Youth Net", he said, "There are complex dilemmas that the economy in the Houthi areas suffers from, which have led to an imbalance in the monetary cycle," noting that the Houthi militia's adoption of a policy of taxation and its abandonment of the spending and payment of salaries has contributed to the expansion of the circles of poverty and unemployment and the decline in daily commercial activity and economic growth.

He added: "The Houthi practices that are destructive to economic activities have not only affected the situation of citizens, but have also affected the movement of markets, as the looting of employees' salaries and the failure to spend on basic services has led to a severe shortage of liquidity among the population. This has generally greatly contributed to the decline in buying and selling, led to the spread of depression in the markets, and inflicted material losses on many commercial activities."

Journalist Saleh added, "In addition to the suffering of the market movement in the areas controlled by the Houthis, the militias impose various financial levies on citizens, merchants, and other segments of society, in light of the lack of liquidity, purchasing power, and the absence of job opportunities. This exacerbates the state of depression and paralyzes the markets with unprecedented commercial paralysis."

The economic journalist warned that the continuation of the recession in the areas controlled by the Houthis, the expansion of unemployment rates, and the decline in the ability of families to bear the burdens of the cost of living, will lead to "the spread of the humanitarian crisis and the multiplication of its effects and repercussions in a devastating manner."

He concluded his statement by saying that the only solution to stop this collapse is for the militia to stop these destructive practices against the national economy and for the economic cycle to return to its normal form.