Yemen’s Houthi movement relies on a broad network of domestic revenue sources and external connections to sustain its military operations, including attacks targeting Saudi Arabia. A study by the Mokha Center for Strategic Studies estimates that the group’s direct and indirect economic system generates resources and costs worth around $2.5 billion annually. The network includes taxes, customs duties, additional levies and contributions collected in areas under Houthi control. Allegations of oil smuggling and international financial links have also drawn scrutiny from governments and financial investigators.
Taxes and Commercial Control Generate Local Revenue
Since taking control of Sanaa in 2014, the Houthis have expanded their collection of taxes, customs charges and other payments from businesses and residents. The estimated $2.5 billion figure includes approximately $800 million from taxes and customs, $600 million from additional fees and levies, and $300 million in cash and in-kind contributions to the war effort. The analysis also accounts for indirect costs imposed on businesses. Critics say these financial demands place further pressure on Yemen’s already struggling economy.
Oil Trading and International Networks Face Scrutiny
Oil-related activity is another major focus of allegations concerning Houthi financing. The US Treasury has said the group generates more than $2 billion annually through illicit oil sales and has accused Iran-linked companies of helping supply oil. Investigators have also identified alleged financial intermediaries, front companies and networks using traditional money transfers and cryptocurrency. Such activity is difficult to track across borders, while sanctions target individuals and businesses suspected of facilitating oil sales, money transfers and weapons procurement. The Houthis have previously denied some allegations concerning their fuel supplies.
War Funding Continues Amid Yemen’s Humanitarian Crisis
The group’s revenue-generating activities operate against the backdrop of a severe humanitarian emergency, with millions of Yemenis requiring assistance and many public-sector workers facing prolonged salary disruptions. International sanctions have sought to restrict access to funds, trade networks and military supplies, although experts say these measures have not fully dismantled the financial system. Analysts warn that domestic revenue collection allows the movement to continue operating even when external channels face pressure. The challenge for policymakers remains disrupting military financing without worsening conditions for civilians already affected by years of conflict.
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