News - Yemen: The United Arab Emirates (UAE) occupation continues consolidating its presence across Yemen’s key strategic sites, systematically seizing and disabling facilities to prevent their contribution to the national economy.

At the forefront of these targeted assets is the Balhaf liquefied natural gas (LNG) facility in Shabwah, chosen in the mid-1990s for its calm coastline, natural depth suitable for giant tankers, and low environmental risks.

The site grew into Yemen’s largest industrial project, with an annual production capacity of 6.7 million tons and revenues previously estimated at $4 billion.

Economic experts say the pro-aggression government handed over this vital facility — which once covered the state budget — to the UAE occupation as part of ongoing economic warfare against the Yemeni people. Since 2015, the UAE has halted all exports from Balhaf, transforming the facility into a military base and secret detention site.

Analysts add that UAE dominance over Balhaf has also opened the door for the influence of the Israeli enemy in several coastal areas, as the occupation seeks to control ports, islands, and natural resources from Socotra to Shabwah.

Officials from the Ministry of Finance note that the UAE is blocking any attempt to restart gas exports to ensure its grip over the region’s resources. Research estimates indicate that Yemen has lost nearly $15 billion due to the shutdown of LNG exports in the early years of the aggression.

Energy specialists emphasize that Balhaf — which cost $4.5 billion to build — remains fully capable of resuming export operations. However, the UAE occupation and allied militias continue to obstruct its reopening in pursuit of broader economic and geopolitical goals.

Experts further highlight that the UAE’s ambitions extend beyond oil and gas, forming part of a long-term strategy to undermine Yemen’s economic strength. Competition with Saudi Arabia for control of Balhaf has also fueled hidden conflicts within the coalition, with both parties seeking to dominate Yemen’s natural resources.

According to analysts, the UAE occupation has transformed Balhaf into a joint operations hub involving American and Zionist entity personnel, while the ongoing shutdown deprives Yemeni institutions and investors of annual profits exceeding $3 billion.

Despite the Yemeni LNG company’s readiness since 2017 to restore exports, the UAE occupation continues to block any resumption, leaving Balhaf at the center of a broader struggle over Yemen’s strategic wealth.

The UAE occupation has turned Shabwa into a central arena for its military and economic expansion, tightening control over ports, energy corridors, and critical infrastructure. 

At the heart of this struggle lies the Balhaf facility — Yemen’s largest industrial project — which has been transformed from a national revenue engine into a militarized zone used by the UAE and its allied forces. Control over Balhaf has become a decisive lever in the broader contest for Yemen’s natural wealth, with regional and international powers seeking influence across its coastline, islands, and maritime trade routes.