[08 November 2004] The Republic of Yemen has adopted an economic policy based on free market. The market mechanism encourages the private sector to take a major role in the development's proces of the country's economy. The economic policy ensures private ownership, which cannot be forfeited except for public interest and then with fair compensation. The investment law gives many investment opportunities and provides incentives to local and foreign investment in all aspects of the economy.

Traditional industries and handicrafts:
There are many traditional industries and handicrafts in Yemen, which have been handed down throughout the generations.
Such industries and handicrafts are characterized by their beauty and attractiveness, particularly those associated with architecture, ornaments and decoration, traditional weapons, clothes and garments, earthenware and stoneware, leather products, and tools and materials made of palm fiber and leaves, etc.

Handicrafts centers exist throughout the Republic and such products can be sampled in the traditional markets of many cities and at the weekly markets called (Souks).