Conflict Between the Banks of Sana'a and Aden, and Heavy Rain Causes Severe Damage in Yemeni Governorates

Khulasat – May 2024 Report:

Conflict Between Banks of Sana'a and Aden:

In May 2024, the conflict between the banks of Sana'a and Aden took a new turn with increased hostility. The Central Bank of Aden canceled the operating licenses of six Yemeni banks for failing to comply with directives to relocate their headquarters to Aden. In response, the Ansar Allah group canceled the licenses of 13 banks headquartered in Aden and Hadramout, which are under the control of the internationally recognized Yemeni government. These decisions had negative repercussions on Yemen’s banking and economic sectors. Meanwhile, the political scene remained stagnant with no significant progress in negotiations, and the frontlines experienced little change except for sporadic clashes in Taiz. American and British aircraft conducted airstrikes on Hudaydah and other areas controlled by Ansar Allah, who, in turn, continued to target Israeli-linked vessels in the Red Sea in response to Israeli actions in Gaza. Additionally, many Yemenis suffered from heavy rains that caused severe damage in various governorates.

Political Developments:

May saw significant activity from the UN Special Envoy to Yemen, Hans Grundberg, and his deputy, Serhad Fattah. They met with the member of the Presidential Leadership Council, Aidarus al-Zubaidi, in Aden. According to the Yemeni government’s news agency, Saba, they discussed the political process, peace efforts, the roadmap for Yemen, including economic issues, road openings, and prisoner exchanges. Al-Zubaidi, however, rejected the idea of resuming negotiations, citing the unrealistic nature of pursuing political talks amidst the intensifying Ansar Allah offensive in the Red Sea and Bab al-Mandab. Despite Al-Zubaidi’s pessimistic statements, Grundberg submitted his monthly briefing to the UN, stating that a peaceful and just resolution to Yemen's crisis is still possible despite the ongoing challenges.

Frontline Clashes:

The German Navy was involved in securing the Red Sea from late February to late April under the EUNAVFOR Aspides program. On May 10, the German Navy ended its first mission in the Red Sea with the return of the FGS Hessen to Wilhelmshaven. Following this, Ansar Allah launched a series of attacks targeting vessels linked to Israeli interests, as claimed by the group. On May 15, Ansar Allah announced military operations targeting the US destroyer "Mason" and the commercial vessel Destiny in the Red Sea with sea-launched missiles. On May 24, they claimed to have targeted three Israeli and Greek ships, one in the Mediterranean. Subsequently, Ansar Allah reported targeting six commercial vessels in the Mediterranean and the Arabian and Red Seas. In response, American and British forces conducted airstrikes on various areas under Ansar Allah control, resulting in 16 deaths and about 40 injuries.

In Taiz, there were military confrontations between Ansar Allah forces and the government’s National Army in Hifan district, resulting in the death of four National Army soldiers and severe injuries to five others. On May 12, airstrikes by the group targeted the Mafalis area in Hifan, killing and injuring several, including a child.

Yemenis also faced dangers from landmines in May. On May 21, three family members were injured by a landmine explosion west of Taiz. On May 25, a civilian was killed, and others injured by a landmine explosion in a small bus in Al-Hariqah, Dhobab district.

Incidents:

On May 7, Mohamed Shabita, Secretary-General of the Yemeni Journalists Syndicate and Assistant Secretary-General of the Arab Journalists Union, was targeted in an assassination attempt in Sana’a, where one of his relatives was killed, and another injured. In Lahj, southern Yemen, a collision between a car and a motorcycle on May 4 resulted in one death and three injuries. Another traffic accident in Hudaydah led to three deaths and one injury. In the Al-Wasiti displacement camp in Beihan, Shabwa governorate, many tents and relief supplies were damaged by a large fire caused by children’s fireworks.

On May 8, one person died, and six others were injured due to an explosion in a weapons store belonging to an arms dealer in the Al-Wadi district, Marib governorate. In Dhamar, central Yemen, a gas cylinder exploded in a house in Yafa village, Jihan district, injuring five people and burning the house. On May 29, an Indian commercial ship sank 30 miles off the coast of Socotra Island, carrying a cargo of cement. According to Reuters, most of the crew, eight in total, were rescued, while one remained missing.

Finance and Business:

On May 30, the Central Bank of Yemen, headquartered in Aden, announced a suspension of transactions with several local banks. This decision was based on the banks' failure to comply with directives and banking regulations. The affected banks included: Al-Tadamun Bank, Yemen Kuwait Bank, Yemen Bahrain Comprehensive Bank, Al-Amal Microfinance Bank, Al-Kuraimi Islamic Microfinance Bank, and Yemen International Bank.

The decision required all banks, financial institutions, and money exchange companies throughout the country to cease transactions with these six banks. According to Saba News Agency, affiliated with the internationally recognized Yemeni government, the Central Bank's action was due to the banks' failure to adhere to legal provisions, anti-money laundering requirements, and their continued dealings with entities designated as terrorist (referring to Ansar Allah), in violation of banking regulations and Central Bank directives.

In response, Ansar Allah quickly issued a countermeasure. The Central Bank of Yemen in Sana’a imposed a ban on transactions with several banks operating in areas under the control of the internationally recognized Yemeni government. This decision prohibited financial institutions, both local and foreign, and individuals from dealing with 13 banks headquartered in these areas. The banned banks included: Qatibi Islamic Microfinance Bank, Al-Basiri Microfinance Bank, Aden Islamic Microfinance Bank, Aden First Islamic Bank, Yemeni National Bank - Aden, Agricultural Cooperative Credit Bank - Aden, Al-Shumul Islamic Microfinance Bank, Al-Salam Capital Islamic Microfinance Bank, Tamkeen Microfinance Bank, Al-Intimaa Microfinance Bank, Al-Sharq Yemeni Islamic Microfinance Bank, Hadramout Commercial Bank, and Bin Dole Islamic Microfinance Bank.

This decision was attributed to these banks conducting banking activities without authorization, violating anti-money laundering and terrorism financing laws, facilitating transactions with internationally sanctioned corrupt entities and terrorist groups, leaking financial data to hostile countries and entities, and working against the interests of the Republic of Yemen and its citizens.

These actions led to market confusion, with many businesspeople and citizens across Yemen rushing to withdraw their deposits from various banks due to fears of seizure. Concurrently, some banks halted their financial transactions but later resumed operations following pressure from the respective authorities in their controlled areas.

Rights and Freedoms:

In Hudaydah, truck drivers continued their sit-in protests since May 1, criticizing the Ministry of Transport in Sana’a and the Hudaydah transport office for not adhering to the regulations set by the heavy transport union. This failure has deprived many truck drivers of opportunities to transport goods from Hudaydah to other governorates and regions.

In Aden, large nightly protests erupted over frequent power outages, which worsened in mid-May, with power cuts lasting over 20 hours a day. Also in Aden, the Supreme Court of Yemen upheld a death sentence for the individual convicted of murdering the child Hanin, reaffirming a previous decision by the Court of Appeals. This verdict came a year after Hanin was killed in the Mansoura district of Aden following an argument between her father and another person.

In mid-May, an agreement was reached between the internationally recognized Yemeni government and Ansar Allah to open the road between Sana’a and Marib, which had been closed for years due to the war. In Taiz, the Mothers of the Abducted Association held a protest in front of the local authority building demanding action on the file of the abducted and a swift response to their suffering in detention centers. In London, Amnesty International called for the immediate release of journalist Ahmed Maher, detained by security forces affiliated with the Southern Transitional Council. On May 25, the European Union urged Ansar Allah to release five detained Baha’is. On May 22, the anniversary of Yemeni unification and the establishment of the Republic of Yemen, the road linking Al-Kadha and Al-Bireen in Taiz governorate was inaugurated.

Health:

Islamic Relief reported over 20,000 cases of cholera in Yemen, with at least 114 deaths by May 8, primarily in the northern regions. According to Majdi Al-Daari, the epidemiological surveillance director in Aden, six deaths from cholera were reported since the outbreak began over two months ago, with nearly 1,000 cases recorded. In the Matun area of Al-Jawf governorate, there was a significant increase in dengue fever cases in late May, with 311 cases reported. In Marib, Governor Sultan Al-Arada announced the establishment of a comprehensive medical city funded by Saudi Arabia.

Environment:

At the beginning of May, the Camp Coordination and Camp Management (CCCM) group, the International Organization for Migration (IOM), and REACH released a joint report on “Flood Risk Analysis in Displacement Sites in Yemen.” The report highlighted that 672 sites hosting a total of 747,143 displaced individuals across 17 Yemeni governorates were classified as having critical or high flood risk for 2024. Among these, 20 sites with 11,778 displaced individuals were deemed at "critical risk," while 652 sites with 735,365 displaced individuals were at "high risk" of destructive floods. The report also noted 318 sites with medium risk, 840 with low risk, and 455 sites with no available data.

The Executive Unit for IDP Camps (EXUIDPS) reported that heavy rains and associated floods from a low-pressure system affected 4,798 displaced families in Hadramout, Al-Jawf, Shabwa, Abyan, Al-Dhalea, Taiz, Marib, and Al-Mahra between April 16 and 24, 2024.

In Al-Mahra, a preliminary government report indicated that heavy rains, with a volume of 108 mm in Al-Ghaydah district, caused the deaths of four people and injuries to 36 others. The report also noted significant damage to roads, bridges, electricity poles, communications infrastructure, and the displacement of hundreds of families. In Al-Mudhafer and Ras Al-Arar districts in western Lahj governorate, floods damaged public and private properties, washed away agricultural lands, and destroyed water supply networks and other infrastructure. In Al-Turba district of the same governorate and in Dhamar, three family members died when their house in Al-Manar district collapsed due to rain-induced floods. Additionally, the Interior Ministry reported 10 deaths from drowning due to floods in government-controlled areas during April. Furthermore, two women drowned in one of the diversion channels of Marib Dam, which had high water levels during the rainy season.

Youth and Sports:

Yemen’s U-19 national football team began an internal training camp in two locations in Abyan and Sana’a in preparation for the West Asian Championship scheduled for next month.

Culture and Arts:

The film "The Overwhelmed" by director Amr Gamal won two new awards at the Saudi Film Festival, which concluded on May 9. Abdul Mohsen Al-Bakheit, owner of an online bookstore in Dhamar, complained about the authorities seizing several books and novels from his store. The Traditional Symphonies Project, led by musician Mohammed Al-Qahoom, is preparing for a concert titled “Yemeni Melody in Doha,” featuring 14 pieces with artists including Hussein Mahboub, Khalid Al-Sanani, Hani Al-Shaibani, Ayman Qusaila, Amer Al-Yafai, and Hamid Hashem, alongside Yemeni and Arab soloists and percussionists. The Qatar Philharmonic Orchestra and a diverse choir from Qatar will also participate. The European Union delegation in Yemen, in collaboration with the Goethe Institute, launched a photography exhibition titled “Roots of Identity” featuring four Yemeni photographers: Afra Ahmed, Al-Baraa Al-Samie, Mohamed Abdelkhaleq, and Mohamed Qattab. The exhibition was held at the Jordan National Museum of Fine Arts in Amman.

Community:

In May, the International Organization for Migration facilitated the return of over 2,000 African migrants, mostly Ethiopians, to their home countries through voluntary humanitarian repatriation during the first quarter of 2024.

The World Food Programme (WFP) reported that the temporary suspension of food aid distribution in Ansar Allah-controlled areas of northern Yemen since December 2023 has led to a significant deterioration in food consumption levels among former aid beneficiaries by February 2024.

The FAO projected an increase in desert locusts in the inland areas between Hadramout and Al-Jawf over the next two months. The Governor of Hadramout for Valley and Desert Affairs, Amer Al-Amri, laid the foundation for a date and onion center project in Tarim district, funded by the European Union through the UN Development Programme (UNDP).

The first Mango Festival in Sana’a concluded with participation from farmers, agricultural associations, fruit exporters, traders, and a large number of citizens. The festival was organized following significant losses suffered by farmers due to criticism from activists and media regarding the quality of locally produced mangoes.