Yemen Future reported, citing an economic source in Washington, that the decision was based on recommendations from several departments within the fund. This marks the first strong international reaction to the recent security escalation in the eastern provinces. The source indicated that this postponement will remain in effect until further notice, following the Southern Transitional Council’s military campaign to take control of Hadhramaut and Al-Mahra provinces. This has led to tension among the components of the Presidential Council and has disrupted the Yemeni government’s efforts in financial and monetary reforms.
The International Monetary Fund announced in October 2025 the resumption of its activities in Yemen, after a halt of nearly 11 years, following the takeover of the Yemeni capital, Sana’a, and most northern cities by the Ansar Allah group.
The local authority in Yemen’s Hadhramaut province and the “Tribes Alliance” have announced efforts to de-escalate and reduce security tensions in the oil-rich province. It is noted that the coastal areas of Hadhramaut, located in southeastern Yemen, are experiencing political tensions with the so-called “Armed Tribes of Hadhramaut Alliance,” which calls for self-rule for the province. There are growing concerns about the worsening situation in one of the most important oil-rich provinces overlooking the Arabian Sea and bordering Saudi Arabia.
