Iranian goods saturate Houthi-controlled areas of Yemen

ADEN -- Medicines and other products of Iranian origin have gradually saturated the market in Houthi-controlled areas of Yemen, causing widespread resentment among local traders and consumers.

Some complain about the low quality of the Iranian goods on offer, and the dearth of choice in the marketplace. Others express concern that Yemen is being used as a dumping ground for Iranian products and a source of revenue for Iran.

The Houthis have been supporting the sale of Iranian consumer goods in Yemen over those of any other origin through an established network of traders and importers affiliated with the Iran-backed group, analysts told Al-Mashareq.

Of special concern are Iranian medicines, which can be found everywhere in Yemen, even though "Yemeni consumers have no confidence in them", said Sanaa pharmacist Sinan Mohammed.

"The Houthi-controlled Medicines Regulatory Authority grants permits for the import of medicines from Iran, while refusing to grant them for similar, internationally recognised brands," he said.

These brands used to be widely available in the Yemeni market, he said.

Patients, especially those suffering from chronic diseases, are accustomed to ordering certain brands that are now impossible to find in the market, he said, leaving them with little choice besides buying the Iranian alternatives.

In recent weeks, a number of countries have rejected imported Iranian produce, citing issues such as traces of fertilisers and mold.

Among them are India, Russia, Uzbekistan, the United Arab Emirates (UAE), Oman and Turkmenistan, all of which have returned or banned imports of fruits and vegetables from Iran since November.

This pattern has raised concerns that the rejected produce is now being sold to the people of Iran at a discounted price or distributed to impoverished Iranians.

Iranian trade network

In addition to medicines, Iranian agricultural products such as raisins and nuts, Iranian carpets, and some types of motor and cooking oils are widely available in Yemen, said economist Abdul Aziz Thabet.

The Houthis support Iranian products "through an established network of affiliated traders, importers and companies", he said, adding that they have even been able to import Iranian oil through this network.

Iranian oil is subject to US sanctions, Thabet noted.

Meanwhile, he said, the Houthis have imposed restrictions on non-affiliated traders and importers, to the chagrin of many Yemeni consumers.

Yemeni consumers avoid Iranian products by choice, as long as there are alternatives on the market, he said, but the problem is that the consumer market has gradually become saturated with Iranian goods.

"The longer the Houthis stay in power, the more the Iranian influence grows with the proliferation of Iranian goods," he said, which will in turn disrupt the market.

Smuggling and import issues

Some of the Iranian products that are available in Yemen are smuggled into the country, according to economist Faris al-Najjar.

"There have been instances of Iranian tuna products brought in through smuggling as part of the Iranian support for the Houthis and as food for their followers on the fronts," he said.

Iranian agricultural products, including raisins and some types of nuts, also make it into Yemen because of "the serious faults in the import process and the economic problems that Yemen is experiencing", he said.

According to al-Najjar, "Yemen has become an open market for Iranian products, even when these products do not bear the name of the country of origin".

"The Houthis regularly register new importers who do what they demand of them without oversight by the legitimate institutions," he said.

He called on the Yemeni government to review the approved lists of importers, step up its oversight of the import/export process "and ban importers who are not included on these lists".