Yemen's construction industry is facing a serious crisis. The Houthi-controlled customs authorities suddenly announced a 50% increase in tariffs on locally produced cement, citing support for Yemeni cement companies. However, this decision lacked a clear legal or economic basis, and did not consult with cement agents, distributors or stakeholders in advance, which immediately triggered a severe shock in the construction industry.
In a formal memorandum issued on January 17, local cement agents and distributors explicitly rejected the price increase, warning that it would have "serious consequences" for the price of building materials and construction costs. They pointed out that the measure would hinder the progress of reconstruction projects, infrastructure development and basic services, while paralyzing the construction market. The statement stressed that support for national institutions should not be at the expense of citizens or important industries that directly affect people's livelihood, and that fiscal and customs decisions must be based on a clear legal framework, serve the public interest, and be issued in a responsible manner, rather than imposed in a sudden manner that undermines the market and harms the economy. The
situation is further exacerbated by the fact that the Houthi authorities have been holding cement trucks at the newly established Damar customs checkpoint for more than a week. Since last Thursday, all concrete companies have ceased operations, and most construction and projects have been halted due to a severe shortage of cement, leaving thousands of daily wage workers without a source of income and livelihood. The agents and distributors demanded an immediate suspension of the tariff increase and urged the authorities to reconsider the decision and engage in a serious and responsible dialogue with all stakeholders to seek a fair and balanced solution that stabilizes prices, encourages construction activities and safeguards national interests.
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