SANA’A — The private sector in Houthi-controlled areas is reeling under the weight of escalating illegal levies and arbitrary financial demands imposed by the de facto authorities, according to local business owners and economic observers.

Over the past months, Houthi militias have intensified their collection of unauthorized fees from merchants, manufacturers, and service providers, under the guise of “war support” and “community contributions.” 

These levies, often demanded without formal documentation or legal basis, have severely strained operating costs and forced many businesses to downsize or shut down entirely.

“We are being suffocated,” said a shop owner in Sana’a who requested anonymity for safety reasons. “Every week there’s a new fee, a new demand. It’s impossible to survive.”

The economic fallout has rippled across local markets, leading to widespread stagnation. 

Shelves in many commercial districts remain stocked but unsold, as consumer purchasing power plummets and investor confidence erodes.

Independent economists warn that the unchecked extortion is accelerating Yemen’s economic collapse, particularly in urban centers where private enterprise once served as a lifeline amid conflict. 

The absence of regulatory oversight and the politicization of commerce have created an environment of fear and unpredictability.

International watchdogs have repeatedly condemned the practice, urging humanitarian protections for economic actors and calling for accountability mechanisms to safeguard Yemen’s fragile economy.