Sanaa — At least 52 bottled water factories have been forced to shut down in the Yemeni capital Sanaa over the past four years due to mounting financial extortion and arbitrary levies imposed by Houthi authorities, according to industry sources and business leaders.

The closures, which have accelerated since 2021, stem from a series of aggressive taxation policies and threats issued by Houthi officials, including demands for payments under the pretext of supporting education and public services. Factory owners report being subjected to fees exceeding 2000% of standard rates, in addition to customs deductions and forced contributions to unofficial funds.

Business leaders and members of the Mineral Water Manufacturers Union have expressed deep frustration with the Houthi-run Investment Authority, accusing it of undermining the investment climate and driving productive industries into collapse. 

“These decisions are not only illegal, they are economically suicidal,” said one factory owner, who requested anonymity for safety reasons.

The closures have sparked fears of a looming bottled water crisis in Sanaa, where demand remains high and alternative supply chains are limited. A recent strike by remaining factories further highlighted the sector’s vulnerability, as producers protested a new tax of one Yemeni rial per bottle, imposed without consultation.

In addition to financial burdens, factory owners report asset seizures, threats of imprisonment, and bureaucratic harassment. Several have relocated operations to government-controlled areas or ceased production entirely.

Calls are growing for international organizations and humanitarian agencies to intervene and support local businesses facing coercion, especially in essential sectors like water, food, and medicine.