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Risk Management Report: Yemen

POLITICS: Yemen is in a very fragile state. After 33 years of rule, president Ali Abdullah Saleh relinquished power in February 2012, and the nation entered a transitional period, intended to last for two years and to steer Yemen towards democracy and stability. But the transition has been beset with problems. Saleh’s successor, Abd-Rabbu Mansour Hadi, has inherited a mess of competing and often violent factions and has struggled to harness them: secessionists in the south continue to resist Sanaa’s rule, a powerful jihadist movement has embedded itself in many parts of the country, remnants of the old guard continue to threaten the political process and, in September 2014, the northern Houthi movement took over the capital, tipping the balance of power in its favour. A National Dialogue concluded in January 2014, but the political transition is continuing to unravel, as reflected in the downward trend arrow on Yemen’s political risk grade.

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