Yemen

Yemen is a country in the Middle East, formed, in 1990, from North Yemen, a part of the Ottoman Empire, and South Yemen, a British protectorate that ended in 1967. The country has a shoreline along the Red Sea, and shares borders with Saudi Arabia and Oman.

Among the poorest countries of the Arab world, it has had average annual growth in the range of 3-4% from 2000 through 2007. Its economic fortunes depend mostly on declining oil resources, but the country is trying to diversify its earnings. Oil revenues probably increased in 2007 as a result of higher prices.

In 2006 Yemen began an economic reform program designed to bolster non-oil sectors of the economy and foreign investment. As a result of the program, international donors pledged about $5 billion for development projects. In addition, Yemen has made some progress on reforms over the last year that will likely encourage foreign investment.