The Republic of Yemen pursued an economic policy based on market mechanisms. and the upgrading of the contribution of the private sector in the economy, and the redefinition of the role of the State in economic activity so that the role of the State is one of corrective and supervisory role, and work to establish the rules of law and institutional construction, and the removal of obstacles facing the private sector, ensuring economic stability and encouraging the private sector to play a leading role in the development process and the achievement of economic growth, through a series of financial, monetary and administrative policies and procedures to support the market mechanism and encourage free trade. The state also worked to re-examine the tax, customs, investment and judicial legislations in order to improve the overall climate for investment. In addition to the implementation of the privatization program designed to expand the areas of economic activities, attract domestic and foreign capital.
Arable area in the Republic of Yemen constitutes 3% of the total area of the Republic of Yemen, and the agriculture Sector is considered as the second production sector after the oil and its contribution rate ranges between (10% - 15%) of the value of GDP. The agricultural sector is considered as the economic sector more inclusive for employment since it wide enough for approximately 54% of the total laborforce and a source of income for more than 70% of the population.
The oil sector is one of the basic production sectors, exploitation of oil resources is focused in a number of governorates of the republic, most notably: (Marib - Shabwa - Hadramawt governorates), this sector contributes with percentage ranging between (30% - 40%) of the value of GDP. It also contributes to more than 70% of the proceeds of the State budget and represents more than 90% of the value of Yemeni exports.
The fisheries sector represents one of the important sectors in the Yemeni economy due to the fact that Yemen possesses a coastal strip up to 2500 kilometers length stretching across the Red Sea ,Gulf of Aden , the Arabian Sea and the Indian Ocean with islands and bays scattered on it which contributed to the creation of a suitable environment for fish and aquatic life of more than 350 types . This very thing enhances the importance of this future promising sector as a major source of food , an important resource for development and boosting the national economy and a major source of jobs.
Industry represents one of the key components of the national economy and contributes with the ratio of (10 - 15)% excluding oil industries, As for the contribution of these industries to the GDP, food industries are ranked the first and then construction industries the main ones are: cement, then tobacco products and metals with the exception of the oil industries which reflects the weak production base and lack of diversity.