Unlocking Innovation in Yemen: A Policy Blueprint for Supporting High-Growth Enterprises

This RYE Policy Brief explores the potential role of innovation-driven enterprises (IDEs) - high-growth ventures built around scalable models and technology - in contributing to economic resilience in Yemen. While IDEs are not yet prominent in the national economy, their emergence in other fragile contexts, including Somalia, Gaza, Rwanda, and Iraq, suggests they could present a viable contribution to economic recovery and diversification. While Yemen’s recovery trajectory remains uncertain, developing an enabling environment for IDEs represents a pragmatic opportunity to support job creation, attract capital, and build economic resilience - particularly in more stable regions of the country. Stakeholders should thus explore the conditions that could support the growth of such enterprises in Yemen, and which incremental policy reforms could begin to lay the foundation for innovation-led development.