Yemen
Yemen, located on the southwestern Arabian Peninsula and bordered by Saudi Arabia, Oman, the Red Sea, and the Arabian Sea, covers 527,968 sq km with a population of around 31 million. Sana’a, the capital, is the country’s largest city and cultural hub. Since the civil conflict in 2015, Yemen has faced severe political, economic, and humanitarian challenges, including infrastructure damage, governance breakdowns, and widespread crises.
Despite these difficulties, Yemen remains strategically important due to its location and natural resources. The economy of Yemen is primarily based on oil exports, which generate the largest share of national revenue, while agriculture, especially coffee and qat, also contributes. Yemen relies heavily on imports for essential goods, food, and machinery, but ongoing conflict has disrupted trade and supply chains.
Top banks
The banking sector in Yemen has been severely affected by the war, with many banks operating under difficult conditions. The Central Bank of Yemen (CBY) regulates the financial system, manages currency issuance, and oversees monetary policy. Yemen’s banking system includes state-owned and private banks, with state-owned institutions dominating. Stabilizing and rebuilding the financial sector is essential to support economic recovery, trade, and long-term growth in Yemen.
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Yemen Commercial Bank (YCB)
Yemen Commercial Bank (YCB) is one of the largest private banks in Yemen, offering personal banking, corporate banking, loans, and foreign exchange services. With a strong national presence, YCB supports economic development, promotes financial stability, and plays a key role in financing trade and business activities in Yemen’s challenging environment.
Al Amal Microfinance Bank
Al Amal Bank is Yemen’s first microfinance bank, dedicated to enhancing financial inclusion for low-income individuals and small businesses. It offers microloans, savings accounts, and financial literacy programs, empowering entrepreneurs and promoting economic development through accessible, inclusive, and sustainable banking solutions across Yemen’s financial sector.
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Central Bank of Yemen (CBY)
The Central Bank of Yemen (CBY) serves as the country’s primary monetary authority, responsible for regulating the financial system, managing monetary policy, and issuing the Yemeni rial. Despite challenges from the ongoing conflict, the CBY continues to oversee foreign exchange operations, banking supervision, and financial stability across Yemen.
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National Bank of Yemen (NBY)
National Bank of Yemen (NBY) is a state-owned financial institution offering savings accounts, loans, foreign exchange, and corporate banking services. As one of Yemen’s leading banks, NBY plays a crucial role in financing public and private sector projects, supporting economic stability, and enhancing the country’s financial infrastructure.
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Arab Bank for Investment and Foreign Trade (ABI)
Arab Bank for Investment (ABI) is a leading corporate bank in Yemen, specializing in loans, trade finance, and investment services. It supports international trade operations, helping Yemeni businesses access global markets through secure financing solutions, foreign exchange services, and strategic financial partnerships that strengthen Yemen’s economic and trade growth.
Top payment methods
Traditional banking and payment infrastructure face significant challenges, and international payment networks such as Visa, Mastercard, and SEPA are largely unavailable, limiting cross-border transactions. Despite these obstacles, mobile payments, digital financial services, and remittances are slowly gaining traction, particularly in urban centers.
The conflict and underdeveloped infrastructure have made it difficult to implement a modern financial system, but efforts are underway to expand banking access and digital payment solutions. These developments are critical for improving financial inclusion, facilitating domestic and international transactions, and supporting economic recovery. As Yemen works to stabilize its banking sector and financial ecosystem, mobile and digital payment solutions are expected to play an increasingly important role in the country’s fintech and payment landscape.
Concluding remarks
Yemen’s payment system remains largely cash-based, with limited digital and electronic payment options available. The ongoing civil conflict and underdeveloped infrastructure have hindered the modernization of the country’s financial sector. However, mobile payments, mobile money services, and remittance solutions have become vital tools for facilitating financial transactions, especially in urban and rural areas with limited access to traditional banks.
Cash
Cash remains the most commonly used payment method in Yemen, especially in rural areas and for small transactions. Due to the ongoing conflict, many areas have limited access to banking services, and cash is the preferred method of payment. Cash is widely accepted, particularly in informal markets, and is used for most day-to-day transactions.
Debit and credit cards
Debit and credit cards are accepted in certain businesses, particularly in urban centers like Sana’a, Aden, and Taiz. However, card payments are still limited, and card penetration remains low due to the lack of widespread banking infrastructure. Some larger businesses and government institutions may accept card payments, but usage is not widespread.
Mobile payments
Mobile payments have gained significant traction in Yemen, especially in the wake of the conflict. Mobile money services like MTN Mobile Money and Yemen Mobile allow users to transfer money, pay bills, and make purchases via their mobile phones. These services are particularly important in Yemen, where access to traditional banking services is limited, and mobile phones are widely used. Mobile money is a crucial tool for promoting financial inclusion, especially in rural areas.
Digital wallets
Digital wallets are still in the early stages in Yemen but have seen some growth due to mobile money services. Platforms like MTN Mobile Money and Yemen Mobile provide digital wallet services, allowing users to store money on their mobile phones and make payments without needing a bank account. These services are particularly useful in areas with limited access to formal banking infrastructure.
Online banking
Some of the major banks in Yemen offer online banking services, allowing customers to manage their accounts, transfer funds, and pay bills via the internet. However, internet access is still limited in certain areas, and the adoption of online banking services remains low compared to other countries. Online banking services are primarily used by individuals with regular internet access, which is more common in urban centers.
Point of Sale
Point of Sale systems are limited in Yemen and are mostly found in larger businesses and shops in urban centers. These systems allow businesses to accept debit and credit card payments, helping to reduce the reliance on cash. However, POS adoption is still limited in smaller businesses and rural areas.
Remittances
Remittances play a significant role in Yemen’s economy, with many Yemenis working abroad, particularly in Saudi Arabia, the UAE, and other Gulf states. Remittances sent home from overseas workers are an essential source of income for many families. Money transfer services like Western Union, MoneyGram, and Al-Amal Exchange are widely used to send money back to Yemen. Remittances are especially important due to the weakened domestic economy and ongoing conflict.
Cryptocurrency
Cryptocurrency use in Yemen is still very limited, and there is no clear regulatory framework for digital currencies. While some individuals may show interest in cryptocurrencies like Bitcoin as a hedge against currency devaluation or for investment, the adoption and use of digital currencies are minimal. Cryptocurrencies are not widely accepted for everyday transactions.
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