Houthis Exploit Yemenis To Build Self-Sustaining Financial Empire, Yemeni Journalist Tells TML
Decades of war have fractured Yemen, creating a dire humanitarian crisis and enabling the Houthis to assert themselves as a key regional force
Yemen, once known as “Arabia Felix” (“fortunate Arabia”) for its cultural wealth and strategic location, now symbolizes the devastation wrought by prolonged war and division. The north remains firmly under the control of the Houthis, also known as Ansar Allah, a group rooted in Yemen’s Zaydi Shiite minority that has established a quasi-state.
The situation is much worse than five years ago. The Houthis have modeled their governance on Iran and Hezbollah, repurposing state structures to consolidate power over the past decade.
Italian journalist Laura Silvia Battaglia, who has extensive experience in Yemen, told The Media Line, “The situation is much worse than five years ago.” She added, “The Houthis have modeled their governance on Iran and Hezbollah, repurposing state structures to consolidate power over the past decade.”
The Houthis have built a self-sustaining financial system by exploiting the Yemeni population for over a decade. So even if the regime in Iran will fall, they will manage to survive anyhow and have clearly nothing to lose.
Hussein, a Yemeni journalist from Sanaa, agreed, stating, “The Houthis have built a self-sustaining financial system by exploiting the Yemeni population for over a decade. So even if the regime in Iran will fall, they will manage to survive anyhow and have clearly nothing to lose.”
Their actions demonstrate alignment with Iran but also highlight their independent strategy. They have shown that they are not only an autonomous local actor but a regional one.
The Houthis’ military actions, including recent missile attacks on Israel, align with Iran’s ideological vision of a Middle East without Israel but do not appear to be directly coordinated. “Their actions demonstrate alignment with Iran but also highlight their independent strategy. They have shown that they are not only an autonomous local actor but a regional one,” Battaglia said.
Iran’s role in Yemen is significant but more complex than commonly depicted. While Tehran offers strategic and military support, the Houthis maintain high autonomy. Their financial resources are not solely dependent on Iran but are bolstered by an internal apparatus.
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The Houthis align with Iran’s broader geopolitical goals but have built their own funding streams through internal exploitation and international investments. Even before their attacks on Israel and gaining international recognition, they managed to terrorize and subsequently force a political dialogue with Saudi Arabia and the Emirates. Especially now, with other militias weakened, they have clearly positioned themselves as the most active and potentially dangerous militia in the region.
“The Houthis align with Iran’s broader geopolitical goals but have built their own funding streams through internal exploitation and international investments,” Battaglia said. “Even before their attacks on Israel and gaining international recognition, they managed to terrorize and subsequently force a political dialogue with Saudi Arabia and the Emirates. Especially now, with other militias weakened, they have clearly positioned themselves as the most active and potentially dangerous militia in the region.”
Despite their strength, the Houthis’ control has not garnered widespread public support. Battaglia explained: “The population remains divided. Some admire their defiance, while others resent their exploitation and authoritarian control,” she noted.
“They’ve also built a Stasi-like control apparatus that surveils citizens and enforces loyalty to their regime, ensuring internal dissent remains minimal,” she added, referring to the secret police of former East Germany known for their extensive surveillance and repression.
The militia has proven to be a formidable force, particularly following the outbreak of the war between Israel and Hamas in 2023. Its actions have gone beyond aligning with the “axis of resistance” to counter Israel, extending to disrupting international trade by damaging and halting ships in the Red Sea.
They’ve been underestimated for years and considered to be only rebels in ‘slippers’ with Kalashnikovs, but their engineering skills and ability to repurpose drones and missiles demonstrate significant military capacity.
Battaglia remarked, “They’ve been underestimated for years and considered to be only rebels in ‘slippers’ with Kalashnikovs, but their engineering skills and ability to repurpose drones and missiles demonstrate significant military capacity.”
Hussein detailed the group’s ascent: “They seized Saleh-era military assets, including weapons stockpiles and intelligence resources.” Their rhetoric, which opposes US and Israeli policies while supporting Gaza, has garnered them regional sympathy. “They gain popular support by positioning themselves as defenders of major causes,” Hussein explained.
Yemen’s dire humanitarian crisis is further exacerbated by deep political divisions. In the south, a fragile government supported by Saudi Arabia and the UAE struggles to maintain stability. “The central government is heavily influenced by external powers, and its authority is fragmented by tribal and militant factions, but it is the only alternative to fight back the Houthis in the country,” Hussein explained.
Battaglia added that the central government, located in the south, is not a “puppet.” However, “it strictly follows the directives of Arab nations, particularly the UAE, which has taken military and naval control of Aden’s coasts and city.”
Over a decade of civil conflict has plunged the country into what the UN describes as the worst humanitarian crisis of the 21st century. Over 80% of Yemen’s 30 million people rely on humanitarian aid, but global support remains inconsistent and underfunded.
In Al Hudaydah’s overstretched public hospital, staff serve over 2,000 patients daily. Funding from the World Health Organization barely covers fuel costs for six months.
Hussein shared his sense of despair with The Media Line. He said, “Living conditions have significantly deteriorated because of the no-war, no-peace status the country has reached.” He noted that aid to Yemen has sharply declined as resources are being redirected to other global crises, such as the conflict in Ukraine, leaving Yemen further marginalized on the international stage.
For example, Coca-Cola trucks entering from Oman face up to 50 checkpoints, with each checkpoint demanding a fee. The leadership also invests its profits internationally, with some Houthis owning businesses and assets in Dubai, China, and Russia. These investments sustain their operations and influence.
“For example, Coca-Cola trucks entering from Oman face up to 50 checkpoints, with each checkpoint demanding a fee. The leadership also invests its profits internationally, with some Houthis owning businesses and assets in Dubai, China, and Russia. These investments sustain their operations and influence,” she noted.
Yemen’s future hangs in the balance as its divisions grow deeper each year. Hussein expressed a glimmer of hope, saying, “We can only hope that Yemen overcomes this ordeal, that peace prevails, and that the war ends.” Battaglia, however, painted a bleaker picture: “Unifying Yemen into a single nation seems impossible now. The entrenched divisions and external influences have fractured the country beyond repair.” Both stressed that without swift international intervention and meaningful action, Yemen risks becoming an enduring battleground for regional and global powers, with its people continuing to suffer the devastating consequences.
