Fuad Mohammed, a 46-year-old construction worker in Taiz, said he's been working for over a quarter-century, but the war in Yemen has made his income unreliable. He described how the ongoing regional conflict between the US, Israel, and Iran has made things even worse. 'We can barely eke out a living for our families,' Fuad told Al Jazeera, as he recounted the loss of steady work.
The Yemeni construction industry has been among the hardest hit. A 20-liter tank of diesel now costs 45,000 Yemeni riyals ($30), a sharp increase from 25,000 riyals ($17) in January. This surge has rippled through the economy, raising the cost of building materials and halting projects. In Taiz, Fuad said he used to find work for two weeks a month, but now he has gone months without steady income.
The price of sand, a key construction material, has risen from 130,000 riyals ($87) to 190,000 riyals ($127) per truckload. Window glass, essential for homes, has gone from 90,000 riyals ($60) to 130,000 riyals ($87) per meter. Homeowners are pausing projects, and contractors are waiting out the crisis, as Fuad explained.
An Aden-based official from the Yemen Petroleum Company said the spike in diesel prices is due to a combination of factors: worsening fuel supply chains, rising global fuel prices, and increased maritime insurance and freight costs linked to tensions in the Strait of Hormuz. The official told Reuters the price hike is temporary and will last until conditions normalize.
Wafeeq Saleh, director of the Taiz Center for Yemeni-Gulf Studies, said Yemen is especially vulnerable to global economic shocks. 'Any disruptions in global commodity markets directly affect the local market,' Saleh told Al Jazeera, noting that the country imports nearly 90 percent of its goods.
While government-controlled areas in the south face fuel shortages and rising prices, areas under the control of the Houthi rebels in the north—such as Sanaa—have not yet seen the same impact. The war has split the country into two parallel economic systems, with separate exchange rates and central banks operating in different regions.
The Houthis are already facing increasing economic discontent. Their isolation on the regional and global stage has left them with fewer options to stabilize their economy. Meanwhile, in the south, workers like Fuad are struggling to survive.
Fuad, who once earned 25,000 riyals ($17) a day, now asks for 20,000 riyals ($13), but even this reduced wage is not always secured. With no skills in other trades, he has few options outside construction.