weighted score 7.6 · nine dimensions
Country Risk Profile
Yemen
Sourcing risk, regulatory exposure and audit intelligence for Yemen-origin supply chains.
Forced & child labour
7
ILAB listings for child labour. Armed conflict drives child soldier recruitment and survival-driven exploitation. 2.2 million malnourished children. Humanitarian funding only 29% met.
Worker rights & FOA
8
Labour law enforcement non-existent. Two rival governments with no functional regulatory systems. Independent unions cannot operate.
OHS & audit transparency
8
Independent audits not feasible in most of Yemen. Active conflict, collapsed infrastructure, and territorial control by armed groups prevent credible assessment.
Food & product safety
7
Food safety regulatory capacity destroyed by conflict. 18.3 million food insecure. No functioning national food safety authority.
Environmental & regulatory
5
Environmental regulation non-functional. Conflict-related pollution from damaged infrastructure and military operations. Oil spill risk from the FSO Safer (addressed 2023 but legacy contamination).
Governance & anti-corruption
9
TI CPI 2025: 13/100 (among the lowest globally). Dual governance creates endemic corruption. State institutions non-functional. FATF grey list.
Tariff & preferential access
7
EU EBA eligible (duty-free) but trade volumes negligible. US, EU, and UN sanctions on Houthi-affiliated entities complicate any commercial activity.
Non-tariff barriers
8
Sanctions screening required for all counterparties. Dual governance creates conflicting documentation requirements. Banking system severely impaired.
Supply chain traceability
9
Traceability effectively impossible. State collapse, dual governance, active conflict, and no credible documentation systems. Population ~34 million.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Yemen is listed by ILAB for child labour in multiple sectors. Armed conflict has driven widespread use of child soldiers by Houthi forces. 22 million people need humanitarian aid; 18.3 million are food insecure. Survival-driven labour exploitation is endemic.
- Child labour
- An estimated 1.4 million children engaged in child labour. Agriculture, fishing, and small-scale mining are primary sectors. Armed conflict and displacement amplify vulnerability.
- Worker rights
- Labour law enforcement is effectively non-existent due to state collapse. Two rival governments (Houthis in Sanaa, Presidential Leadership Council in Aden) operate parallel and non-functional regulatory systems.
- Audit access
- Independent social compliance audits are not feasible in most of Yemen. Active conflict zones, Houthi-controlled territory, and collapsed infrastructure prevent any credible audit programme.
- ILO conventions
- Yemen has ratified core ILO conventions but enforcement capacity is zero. Institutional collapse means ratification has no practical effect on working conditions.
EU Regulatory Exposure
EU Regulatory Exposure
- GSP status
- Yemen is eligible for EU Everything But Arms (EBA) as an LDC, granting duty-free and quota-free access. However, trade volumes are negligible due to conflict.
- Sanctions
- EU, US, and UN sanctions apply to Houthi-affiliated individuals and entities. OFAC has redesignated Ansar Allah (Houthis) as a Specially Designated Global Terrorist group (January 2024). Sanctions compliance is a primary concern for any Yemen-linked transaction.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Yemen-origin goods face high likelihood of investigation given documented forced labour and child labour.
- EUDR exposure
- Minimal direct relevance. Yemen's agricultural exports to the EU are negligible. Coffee is produced domestically but volumes are tiny.
- Anti-money laundering
- Yemen is on the FATF grey list. Financial due diligence requirements are elevated for any Yemen-linked transactions.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary corridor
- Red Sea / Gulf of Aden. Yemen straddles the Bab el-Mandeb strait, one of the world's most critical maritime chokepoints.
- Houthi Red Sea attacks
- Houthi attacks on commercial shipping resumed July 2025 then paused following Hamas ceasefire. Threatened resumption in February 2026 linked to Iran tensions. These attacks disrupted global container shipping, forcing diversions around the Cape of Good Hope.
- Port infrastructure
- Hodeidah (Houthi-controlled) and Aden (PLC-controlled) are the primary ports. Both operate at severely reduced capacity due to conflict damage and equipment degradation.
- Traceability
- Supply chain traceability is effectively impossible. State collapse, dual governance, and active conflict mean no credible chain-of-custody documentation exists for most goods.