Yemen is important to world trade and economy due to its strategic location at the Bab el-Mandab strait linking the Red Sea and the Gulf of Aden, as well as its oil and natural gas resources. However, poverty is one of the major constraints that prevent the country from participating as actively it should be. As such, the authors aim to illustrate the vicious circle of poverty and make some recommendations that could play a role in breaking the cycle of poverty by equity and efficiency of the Islamic inspiration. Next, the authors review the interplay between health care challenges and the remnants of the weakened health care system in Yemen. Additionally, a critically analysis is performed on the challenges posed by the health care crisis and its implication on the future of Yemen’s healthcare system, as well as the different social classes of its population. The following chapter provides an overview of the banking sector and its progress since the issuance of economic and financial reforms post-1994 and the introduction and establishment of the Islamic Banks Act in 1996. The key challenges facing the banking industry in Yemen are highlighted, and recommendations for enhancing the industry and achieving the desired reforms of the financial system to strengthen the Yemeni economy are included. The concluding chapter presents a case study which has been conducted in the Kuhlan Affar/Wadi Sharis area in Hajja Governorate. The study’s methodology was largely based on a combination of data collected during the field surveys, data compiled from various other sources, correlation analysis with field observations, as well as the consultants’ professional experience. However, because of data limitations, the findings presented in this case study should be considered preliminary and they remain subject to further refinement as more data become available.
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