There are considerable reserves of oil and gas. Crude oil production and refining, based in Aden, is rising but has been held back by Western companies' reluctance to offend Saudi Arabia, whose relations with Yemen are strained. Despite attacks by bandits, exploration is continuing in many areas. Salt is the only other mineral that is commercially exploited at present, and its production continues to grow steadily.
Cotton is grown as a cash crop.
There is also some forestry and hunting for animal skins. Livestock and livestock products, including dairy produce and hides, are the economic mainstays of the north. Yemen's rich fishing grounds in the Arabian Sea have been developed. They now provide a major source of earnings, despite poor equipment.