Yemen is one of the poorest countries in the Arab region with a per capita GDP of US$1160
for 2008 (WDI, 2010) and faces a wide range of developmental challenges, in 2011 amplified
by deepened domestic conflict. According to the HDI (Human Development Index), the
country was ranked 140 out of 182 in 2007 (UNDP 2009). Ever since reunification in 1990
Yemen’s relative position on the HDI index has remained more or less unchanged, with very
slow progress towards attaining the Millennium Development Goals (MDGs). At 3 percent, the
country has one of the highest population growth rates globally, with the population expected
to double in 23 years to around 40 million. This increases the demand for educational and
health services, drinking water and employment opportunities. Yemen faces a severe water
shortage, with available ground water being depleted at an alarming rate. The Yemeni
economy is caught in a jobless slow growth cycle leading to stagnant per capita incomes and
rising levels of unemployment, particularly amongst the youth.