Yemen is grappling with a profound humanitarian crisis, with 69% of its population in desperate need of aid and protection due to ongoing conflict, economic turmoil, and rampant food insecurity. There are 4.5 million internally displaced individuals, and about 17 million people face severe food scarcity, including 2.2 million malnourished children below five years old and 1.3 million malnourished expectant and breastfeeding women.

To address these challenges, a joint programme titled "Supporting Resilient Livelihoods, Food Security, and Climate Adaptation in Yemen (ERRY III)" was launched in March 2022 for a three- year duration. The programme, funded by the European Union and the Government of Sweden, is a collaborative effort between UNDP, FAO, ILO, and WFP, and operates in seven vulnerable governorates. The programme's focal points are bolstering the autonomy and resilience of distressed communities by generating economic opportunities, enhancing food production capabilities, reconstructing communal assets, supporting agricultural value chains, promoting gender equality, and facilitating access to solar energy. Furthermore, it seeks to fortify the capacity of local institutions for gender-sensitive service provision and improve access to basic amenities.

This market study report is a component of ERRY III and concentrates on rural income development. The report aims to comprehend and analyse the necessities and opportunities for training, microbusiness sectors, self-employment, and micro-entrepreneurship, particularly for women and youth in selected rural communities. The key objectives encompass understanding educational levels, skills, and training requirements, examining market prospects for economic activities, evaluating market capacities in target areas, scrutinizing value chains in key sectors, analysing available funding sources for rural businesses, and evaluating the utilization of mobile technology for financial transactions.