One of the particularities of what is currently being negotiated between Saudi Arabia and Ansar Allah is that the parties are contemplating establishing a revenue allocation mechanism in the absence of an overarching constitutional or political framework.

This paper seeks to highlight some of the opportunities and challenges that are likely to present themselves if the negotiating parties manage to reach agreement on the payment of public sector employees. In addition, the paper explores three case studies from which it seeks to draw lessons learned for Yemen’s situation.